Karalis v. New Dimensions HR, Inc.

Summary

The New York Appellate Division, Second Department, reversed an order denying the plaintiffs' motion for a default judgment on liability and granting the defendants' cross motion to vacate their default and serve a late answer. The court held that the defendants failed to establish both a reasonable excuse for their default and a potentially meritorious defense.

Holdings

1. Plaintiffs established their entitlement to judgment on liability by submitting proof of service, proof of the facts constituting their claim, and proof of defendants' failure to appear or answer.
2. Defendants were required to demonstrate both a reasonable excuse for their default and the existence of a potentially meritorious defense, and they failed to make either showing sufficient to defeat plaintiffs' motion.

Questions Presented

1. Whether plaintiffs established entitlement to a default judgment on liability under CPLR 3215.
2. Whether defendants demonstrated both a reasonable excuse for their default and a potentially meritorious defense sufficient to vacate the default and obtain leave to serve a late answer.

Disposition

reversed