Cohn v. PROF-2013-M4 Legal Title Trust

Summary

The Appellate Division, Second Department affirmed an order vacating a default judgment in an action to quiet title to real property. The court held that vacatur was warranted in the interest of substantial justice because the plaintiff's representation that a related foreclosure action had been dismissed was no longer accurate when the default judgment was sought.

Holdings

1. CPLR 5015(a) does not provide an exhaustive list of grounds for vacating a default judgment; a court may vacate its own judgment for sufficient reason and in the interests of substantial justice.
2. The Supreme Court providently exercised its discretion in vacating the default judgment because the representation that the related foreclosure action had been dismissed was false or no longer accurate when the plaintiff moved for the default judgment.

Questions Presented

1. Whether the Supreme Court had authority under CPLR 5015(a) and its inherent power to vacate the default judgment in the interest of substantial justice.
2. Whether the Supreme Court providently exercised its discretion in vacating the default judgment because the factual representation supporting entry of the judgment was no longer true when the plaintiff sought the default.

Disposition

affirmed