Summary
This Appellate Division, First Department decision affirms the denial of defendants' motion to vacate default judgments entered against them. The court held that the defendants' failure to update their registered addresses with the Secretary of State and their lack of appearance supported an inference of deliberate avoidance of notice. Additionally, the court found the defendants failed to demonstrate a meritorious defense based on a contractual release provision that did not apply to the claims at issue. Any alleged deficiencies in additional service requirements were deemed insufficient to warrant vacatur given the defendants' conduct.
Topics
Practice areas
Questions Presented
- Whether the Supreme Court should vacate the default judgments against defendants under CPLR 317.
- Whether defendants' reliance on a release and alleged service deficiencies constitute grounds for vacatur.
Holdings
- The Appellate Division affirmed the denial of the motion to vacate; the default judgments remain in place.
Key quotations
“Supreme Court providently exercised its discretion in denying defendants' motion in accordance with CPLR 317 (see Eugene Di Lorenzo, Inc. v. A. C. Dutton Lbr. Co., 67 N.Y.2d 138, 141-142 [1986]; Lawrence v. Esplanade Gardens, 213 A.D.2d 216, 216 [1st Dept 1995]).” (at 1)
“Defendants failed to update their registered forwarding and office addresses with the Secretary of State, even after they were named as defendants and failed to appear in another action in which they were served in accordance with Business Corporation Law § 306, as they were in this action.” (at 1)
Factual background
Defendants failed to update their registered forwarding and office addresses with the Secretary of State after being named as defendants, failed to appear in another action, and attempted to avoid notice. They relied on a release provision from a California settlement that did not apply to the claims in this action and did not demonstrate a meritorious defense.
Procedural history
The Supreme Court, New York County denied defendants' motion to vacate default judgments. Defendants appealed, and the Appellate Division affirmed the denial.