HB269 Summary: Uniform Asset-Preservation Orders Act

• Enacts the Alabama Uniform Asset-Preservation Orders Act to create a process for courts to issue asset-preservation orders in civil actions seeking monetary damages.

• Asset-preservation orders are in personam orders that prevent parties and nonparties (such as banks) from dissipating assets pending judgment, replacing traditional in rem prejudgment attachments.

• Courts may issue orders with notice and expedited hearing if they find substantial likelihood the plaintiff will prevail, substantial risk of asset dissipation, that harm to defendant is outweighed by risk to plaintiff, and the order serves the public interest.

• Courts may issue orders without notice based on affidavit if the moving party conducts reasonable inquiry, discloses material facts against the order, and explains notice efforts; such orders expire in 10 days unless extended for good cause or by consent.

• Nonparties served with the order must take necessary actions to preserve assets and comply promptly; the bill requires security from parties obtaining orders and establishes procedures for recognizing orders from other states and foreign courts, with effect date of January 1, 2016.