Stonewell Bodies & Machine, Inc. v. All Area Fire & Rescue Apparatus Sales, LLC

Summary

The New York Appellate Division, Fourth Department affirmed an order denying the defendant's motion to vacate a default judgment arising from an agreement concerning the manufacture and purchase of emergency service vehicles. The court held that the defendant failed to establish a reasonable excuse for its default based on alleged law office failure and COVID-19-related hardships. Because no reasonable excuse was shown, the court did not address whether the defendant had a potentially meritorious defense.

Holdings

1. Defendant failed to establish a reasonable excuse for its failure to appear because its attorney offered only vague claims concerning pandemic-related hardships and law office failure.
2. Executive Order 202.8 did not provide a relevant excuse because it was issued after the deadline for defendant to appear had passed.
3. Because defendant failed to establish a reasonable excuse for the default, the court did not need to consider whether defendant had a potentially meritorious defense.

Questions Presented

1. Whether defendant established a reasonable excuse for its failure to appear sufficient to vacate the default judgment under CPLR 2005 and 5015(a)(1).
2. Whether Executive Order 202.8 supplied a relevant basis for excusing or tolling defendant's failure to appear.
3. Whether the denial of defendant's motion to vacate the default judgment constituted an abuse of discretion.

Disposition

affirmed