Friedman v. MTGLQ Invs., LP

Summary

The Appellate Division, Second Department affirmed an order granting the plaintiffs' motion for leave to enter a default judgment in an RPAPL article 15 action to cancel and discharge a mortgage. The court held that U.S. Bank, as alleged successor to the defaulting defendant, failed to demonstrate a reasonable excuse for the delay in answering or establish grounds to compel acceptance of its late answer.

Holdings

1. The plaintiffs were entitled to leave to enter a default judgment because they submitted proof of service, proof of the facts constituting their cause of action, and proof of MTGLQ's default.
2. U.S. Bank failed to demonstrate a reasonable excuse for the delay in answering the complaint.
3. The Supreme Court properly denied U.S. Bank's request to compel the Friedmans to accept its late answer because U.S. Bank failed to establish a reasonable excuse for the delay.

Questions Presented

1. Whether the Friedmans established the requirements for entry of a default judgment under CPLR 3215.
2. Whether U.S. Bank demonstrated a reasonable excuse for the delay sufficient to defeat the default-judgment motion.
3. Whether U.S. Bank was entitled to compel the Friedmans to accept its late answer under CPLR 3012(d).

Disposition

affirmed