Dusaj v. Waterbridge Court Square Holdings, LLC

Summary

The Appellate Division, Second Department reversed an order granting Waterbridge Court Square Holdings, LLC's motion under CPLR 5015(a)(1) to vacate an order granting the plaintiff leave to enter a default judgment. The court held that the defendant failed to establish a reasonable excuse for its default, making it unnecessary to determine whether it had a potentially meritorious defense.

Holdings

1. A defendant seeking to vacate a default under CPLR 5015(a)(1) must demonstrate both a reasonable excuse for the default and a potentially meritorious defense. Waterbridge's belief that the lessee was defending the action, together with its unexplained failure to respond for more than three months after notice of the default-judgment order, was not a reasonable excuse.
2. Because Waterbridge failed to establish a reasonable excuse for its default, it was unnecessary to determine whether Waterbridge had a potentially meritorious defense.

Questions Presented

1. Whether Waterbridge demonstrated a reasonable excuse for its default and therefore was entitled under CPLR 5015(a)(1) to vacatur of the order granting leave to enter a default judgment.
2. Whether the court needed to determine whether Waterbridge had a potentially meritorious defense after it failed to establish a reasonable excuse for its default.

Disposition

reversed