Lotus Residences LLC v. Northfield Ins. Co.

Summary

The Appellate Division, First Department unanimously affirmed an order denying plaintiffs' motion to vacate a default judgment entered against Castillo Contractors, Inc. on Northfield Insurance Company's cross-claim seeking a declaration of no coverage under an employer exclusion. The court held that plaintiffs established no basis for vacatur under CPLR 5015(a)(3) or in the interest of justice, noting their failure to oppose the default motion and the absence of prejudice to their ability to litigate coverage as additional insureds.

Holdings

1. No grounds existed to vacate the default judgment under CPLR 5015(a)(3).
2. No; plaintiffs failed to establish that the default judgment should be vacated in the interest of justice.

Questions Presented

1. Whether the default judgment should be vacated under CPLR 5015(a)(3).
2. Whether the default judgment should be vacated in the interest of justice.
3. Whether the default judgment against Castillo impaired plaintiffs' ability to litigate their separate coverage claim against Northfield as additional insureds.

Disposition

affirmed