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0 tracked cards Remedial Law, Legal and Judicial Ethics, with Practical Exercises
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Facts: In a pending civil action on a money claim, the Sheriff levies on real property owned by the judgment debtor. A third person, X, appears and files a verified petition under Rule 39, claiming ownership and possession of the levied property, asserting that he acquired it from the debtor prior to the writ and that the property is not subject to execution. The judgment creditor moves to proceed with the sale of the property. (a) Identify the controlling doctrine governing proceedings where property is claimed by third persons and the key relief it affords. (b) Briefly explain the procedural steps the court must take upon filing of a third-person claim, including any stays, bonds, and notices. (c) Apply the doctrine to these facts: what order should the court issue, and what are the possible outcomes if X's claim is upheld or denied?

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