Summary
This Appellate Division, First Department decision reverses and vacates a Supreme Court money judgment entered in favor of plaintiffs against defendants. The court held that the judgment violated an automatic stay under CPLR 321(c) triggered by the suspension of defendants' prior counsel, as plaintiffs failed to provide required notice or obtain leave to proceed. Consequently, the court vacated the judgment without addressing the parties' remaining appellate disputes.
Topics
Practice areas
Questions Presented
- Whether the entry of the judgment on April 2, 2024 violated the automatic stay provision of CPLR 321(c).
Holdings
- A judgment entered during an automatic stay under CPLR 321(c) must be vacated.
Key quotations
“Accordingly, the automatic stay remained in effect when the judgment was entered on April 2, 2024.”
Factual background
Defendants' counsel was suspended on June 29, 2023, invoking an automatic stay under CPLR 321(c). Plaintiffs did not serve the required 30‑day notice or obtain leave to proceed, and defendants did not retain new counsel until May 3, 2024. The judgment was entered on April 2, 2024, while the automatic stay was still in effect.
Procedural history
The Supreme Court, Bronx County entered a money judgment on April 2, 2024. Defendants' prior counsel was suspended on June 29, 2023, triggering an automatic stay under CPLR 321(c). No 30‑day notice or leave to proceed was obtained, and new counsel was not retained until May 3, 2024, so the stay remained in effect when the judgment was entered. The Appellate Division reversed and vacated the judgment.