(a) Subject to subdivision (b), if a third person examined pursuant to this article claims an interest in the property adverse to the defendant or denies the debt, the court may, if the plaintiff so requests, determine the interests in the property or the existence of the debt. Such a determination is conclusive as to the plaintiff, the defendant, and the third person, but an appeal may be taken from the determination in the manner provided for appeals from the court in which the proceeding takes place. The court may grant a continuance for a reasonable time for discovery proceedings, the production of evidence, or other preparation for the hearing.
§ 491.170.Third Person Claims Interest In Property Adverse to Defendant Or Denies Debt
Title 6.5. Attachment · Chapter 11. Attaching Plaintiff's Miscellaneous Remedies · Article 1. Examination of Third Person · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 491.170 lets the court, at the plaintiff's request, resolve a third person's adverse claim to property or denial of a debt raised during examination, unless the claim is made in good faith and falls within specific venue, prior-pending-action, or creditor's-suit circumstances that instead reserve the issue for a separate lawsuit.
Full Text of § 491.170
(b) The court may not make the determination provided in subdivision (a) if the third person's claim is made in good faith and any of the following conditions is satisfied:
(1) The court would not be a proper court for the trial of an independent civil action (including a creditor's suit) for the determination of the interests in the property or the existence of the debt, and the third person objects to the determination of the matter under subdivision (a).
(2) At the time an order for examination pursuant to this article is served on the third person a civil action (including a creditor's suit) is pending with respect to the interests in the property or the existence of the debt.
(3) The court determines that the interests in the property or the existence of the debt should be determined in a creditor's suit.
(c) Upon application of the plaintiff made ex parte, the court may make an order forbidding transfer of the property to the defendant or payment of the debt to the defendant until the interests in the property or the existence of the debt is determined pursuant to subdivision (a) or until a creditor's suit may be commenced and an order obtained pursuant to Section 491.340. An undertaking may be required in the discretion of the court. The court may modify or vacate the order at any time with or without a hearing on such terms as are just.
(d) Upon application of the plaintiff upon noticed motion, the court, if it determines that the defendant probably owns an interest in the property or that the debt probably is owed to the defendant, may make an order forbidding the transfer or other disposition of the property to any person or forbidding payment of the debt until the interests in the property or the existence of the debt is determined pursuant to subdivision (a) or until a creditor's suit may be commenced and an order obtained pursuant to Section 491.340. The court shall require the plaintiff to furnish an undertaking as provided in Section 529. The court may modify or vacate the order at any time after notice and hearing on such terms as are just.
Plain-English Summary
An examination can reveal that the third person disputes the defendant's claim to the property altogether -- asserting an adverse interest or denying the debt exists. Section 491.170(a) lets the court resolve that dispute right there, if the plaintiff asks, with a determination that binds the plaintiff, the defendant, and the third person, subject to appeal, and the court can grant a continuance for discovery or evidence preparation.
Subdivision (b) takes that power away in three specific circumstances, so long as the third person's claim is made in good faith: when the examining court would not be a proper venue for an independent action (including a creditor's suit) and the third person objects; when a civil action over the same property or debt is already pending at the time of service; or when the court itself determines the matter belongs in a creditor's suit instead. In those situations the dispute has to be litigated separately rather than resolved on the spot.
Subdivisions (c) and (d) give the plaintiff interim protection while that larger question gets sorted out. On ex parte application, the court may forbid the third person from transferring the property or paying the debt to the defendant, with an undertaking left to the court's discretion. On noticed motion, if the court finds the defendant probably does own the interest or is probably owed the debt, it may forbid transfer or payment to anyone at all -- but here the plaintiff must furnish an undertaking under § 529, not merely at the court's discretion.
Frequently Asked Questions
Can the court decide who really owns disputed property during an examination proceeding?
Yes, if the plaintiff requests it. Section 491.170(a) lets the court determine the interests in the property or the existence of the debt, binding the plaintiff, defendant, and third person, subject to appeal.
When will the court refuse to resolve a good-faith dispute during the examination?
Section 491.170(b) withholds that determination when the third person's good-faith claim falls into one of three situations: the court isn't a proper venue for an independent action and the third person objects, a related civil action is already pending, or the court decides the matter belongs in a creditor's suit.
Can the plaintiff stop the third person from paying the disputed debt to the defendant in the meantime?
Yes, in two ways. Section 491.170(c) allows an ex parte order forbidding transfer or payment, with an undertaking left to the court's discretion, and subdivision (d) allows a noticed-motion order with the same effect once the court finds the defendant probably owns the interest, but that order requires the plaintiff to furnish an undertaking under § 529.
Is an undertaking always required to freeze the disputed property or debt?
It depends which subdivision applies. Under § 491.170(c)'s ex parte order, an undertaking is discretionary; under subdivision (d)'s noticed-motion order, the plaintiff must furnish an undertaking under § 529.
Amendment History
Added by Stats. 1982, Ch. 1198, Sec. 57. Operative July 1, 1983, by Sec. 70 of Ch. 1198.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: third person adverse claim examination californiacreditor's suit vs examination proceedingfreeze disputed debt attachment california