SB196 Alabama 2015 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2015

Title

Civil actions, Uniform Asset-Preservation Orders Act enacted, procedure for court orders to preserve assets of parties including order to nonparties

Summary

SB196 would create the Alabama Uniform Asset-Preservation Orders Act to let courts issue orders that stop asset dissipation in civil cases, including orders affecting nonparties like banks.

What This Bill Does

If enacted, courts could issue asset-preservation orders to prevent dissipation of assets while a civil case is decided. These orders can target the party in the case and, in many situations, other people or institutions that hold or control the party's assets (nonparties), such as banks. There are rules for issuing with or without prior notice, security requirements, and possible allowances for the movant to cover living and legal expenses. The act also covers how orders from other states or countries are recognized and how the orders are enforced and appealed.

Who It Affects

• Parties to civil actions (plaintiffs and defendants) who may seek or be subject to asset-preservation orders, potentially preventing asset dissipation.
• Nonparties who hold or control assets of a party (e.g., banks, custodians, joint owners) who must preserve assets and comply with the order, subject to security and possible indemnity.

Key Provisions

• Enacts the Uniform Asset-Preservation Orders Act to allow courts to issue asset-preservation orders in civil actions.
• Defines asset-preservation order as an in-personam restraint preventing dissipation of assets, including assets held by nonparties.
• Excludes actions involving consumer debt and family/domestic relations from the act's application.
• Allows asset-preservation orders with notice based on likelihood of success, risk of asset dissipation, balancing harms, and public interest.
• Allows asset-preservation orders without notice in urgent cases with an affidavit, expires within 10 days unless extended, and requires disclosure of all facts weighing against issuance.
• Requires security (bond) to cover costs and damages if the order is improvidently granted; allows indemnification of nonparties for compliance costs.
• Requires nonparties served with orders to preserve assets and may allow relief to pay living, business, and legal expenses after notice.
• Allows the court to limit the order to certain assets and require accounting.
• Provides for recognition and enforcement of orders from other states or foreign courts under specified conditions.
• Provides full faith and credit for asset-preservation orders and outlines appellate review by the Alabama Supreme Court; effective January 1, 2016.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Civil Procedure