Commercial Division Blog: Current Developments in the Commercial Divisions of the New York State Courts

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November 11, 2024 Fee Shifting Denied When Purported Fee-Shifting Clause Lacked Clear Language Suggesting Fee Shifting in Litigation
On September 26, 2024, Justice Joel M. Cohen of the New York County Commercial Division issued a decision in Bloodhound Partners LLC v. Wearsafe Labs Holding LLC, Index No. 654718/2022, granting a motion for entry of a default judgment but denying attorneys' fees to plaintiffs on the ground that the purported fee-shifting clause on which plaintiffs relied lacked "clear language suggesting fee shifting in litigating," explaining: Read More
February 5, 2024 No Default Judgment When Defendant's Delay in Answering Was Brief, Not Willful, and Did Not Prejudice Plaintiff
On December 23, 2023, Justice Joel M. Cohen of the New York County Commercial Division issued a decision in Forum Gallery Inc. v. Spirits Financial Corp., et al., Index No. 653573/2023, rejecting defendant's argument that it was not properly served, but nonetheless denying plaintiff's motion for entry of a default judgment because the delay in answering was "brief," was "not willful," and did not prejudice plaintiff, explaining: Read More
November 22, 2023 Court Denies Motion for Default Judgment Seeking Rescission
On October 24, 2023, Justice Andrea Masley, of the New York County Commercial Division issued a decision in Abad v. Iaero Group Holdco 2 LLC, Index No. 652510/2022, denying plaintiff’s request for issuance of a default judgment awarding plaintiff rescission as an award on her cause of action for fraud. The Court explained the motion must be denied because plaintiff failed to allege a claim for rescission in her complaint, because rescission cannot be awarded absent notice and the appearance of all parties to the underlying agreement, and because the affidavit relied upon for default was inadequate to support a default judgment. The court explained: Read More
August 25, 2023 Defendants' Answer Stricken for Failure to Comply With Discovery Orders
On July 10, 2023, Justice Joel M. Cohen of the New York County Commercial Division issued a decision in Kaiping Hong-Ri Garment Co. Ltd. v. Goldfarb, 2023 NY Slip Op 32459(U), striking defendants' answer and entering a default judgment because of defendants' failure to comply with the court's discovery orders, explaining: Read More
June 16, 2023 Motion for Default Judgment Based on “Nail and Mail” Service Denied For Failure to Complete “Due Diligence”
In a Decision and Order, dated May 19, 2023, in McGuigan v. Gendell, Index No. 650294/2021, Justice Joel M. Cohen denied plaintiffs’ motion for a default judgment finding that plaintiffs did not sustain their burden to establish proper service under CPLR 3215(f). The Court explained: Read More
February 1, 2023 Court Denies Motion To Vacate Default Judgment
In a Decision and Order, dated January 5, 2023, in Yunjie Frank Yang v. Knights Genesis Group, Index No. 651118/2021, Justice Andrew Borrok denied Defendant’s motion to vacate a default judgment. The Court explained: Read More
June 27, 2022 Attorney Affirmation Made Upon Information and Belief Cannot Support Motion for Default Judgment
On May 10, 2022, Justice Andrea Masley of the New York County Commercial Division issued a decision in Stanziale v. Perlson, 2022 N.Y. Slip Op. 31528(U), holding that an attorney affirmation was insufficient to support a motion for default judgment when many of the allegations in the affirmation were based on information and belief, explaining: Read More
May 25, 2022 Discovery Violations Result in Striking of Answer and Default Judgment
In a Decision and Order dated April 11, 2022, in Lynx Capital Partners of NJ, LLC v. Bayes Capital LLC, 2022 NY Slip. Op. 31214(U), Justice Andrew Borrok granted the plaintiff’s renewed motion for sanctions, struck the defendant’s answer, entered default judgment in plaintiff’s favor, and awarded attorneys’ fees. Read More
November 17, 2021 Notice Required By C.P.L.R. 3215(g)(1) Limited to Applications for Entry of Default Judgment
On September 22, 2021, the Second Department issued a decision in 21st Mortgage Corp. v. Raghu, 197 A.D.3d 1212, holding that the notice required by C.P.L.R. 3215(g)(1) applies only to an application for entry of a default judgment and does not apply to a motion to confirm a referee's report and for judgment of foreclosure and sale. Read More
July 10, 2021 Action Must be Dismissed if Plaintiff Fails to Seek a Default Judgment Within One Year
On July 7, 2021, the Second Department issued a decision in US Bank N..A. v. Davis, 2021 NY Slip Op.… Read More
June 2, 2021 Court Grants Order Allowing Late Answer When Delay Was Short and There Was No Prejudice to the Plaintiff
On May 11, 2021, Justice Knipel of the Kings County Commercial Division issued a decision in Old Rep… Read More
March 6, 2021 Default Judgment Not Vacated Because Plaintiff Failed to Provide a Reasonable Excuse for Failing to Oppose Defendant's Motion
On March 3, 2021, the Second Department issued a decision in Ganach v. Milloul, 2021 NY Slip Op. 012… Read More
March 5, 2021 Foreclosure Action Properly Dismissed Because of the Failure of Plaintiff's Counsel to Appear at a Status Conference
On March 3, 2021, the Second Department issued a decision in Bank of Am., N.A. v. Sofer, 2021 NY Sli… Read More
January 18, 2021 Verified Complaint Has Same Effect as an Affidavit
On December 24, 2020, Justice Sherwood of the New York County Commercial Division issued a decision … Read More
January 5, 2021 Court Erred in Dismissing Action for Failure to Prosecute
On December 23, 2020, the Second Department issued a decision in Deutsche Bank Natl. Trust Co. v. He… Read More
December 22, 2020 Plaintiff Denied Default Judgment Because of Failure to Submit Evidence of Liability
On December 2, 2020, Justice Masley of the New York County Commercial Division issued a decision in … Read More
November 26, 2020 Court Erred By Dismissing Action Sua Sponte for Failure to Prosecute
On November 12, 2020, the Second Department issued a decision in Wells Fargo Bank, N.A. v. Brown, 20… Read More
October 31, 2020 CPLR 3215(c) Requires Only That Plaintiff Move for Default Within One Year, Not That a Default Judgment Be Entered Within One Year
On October 14, 2020, the Second Department issued a decision in Onewest Bank, FSB v. Kanapathipillai… Read More
October 21, 2020 COVID-19 Pandemic No Excuse for Failing to Respond to Motion
On September 30, 2020, Justice Friedman of the New York County Commercial Division issued a decision… Read More
October 20, 2020 Court Should Not Have Vacated Default Judgment When Loan Servicer's Excuse Was "Confusion Regarding the Multiple Cases Filed in Multiple Counties"
On October 14, 2020, the Second Department issued a decision in Insiders Success Ventures, LLC v. On… Read More
September 15, 2020 Court Gives Defendant Opportunity to Cure Default
On September 1, 2020, Justice Borrok of the New York County Commercial Division issued a decision in… Read More
July 8, 2020 Complaint Dismissed for Failure to Seek Default Judgment Within One Year
On July 1, 2020, the Second Department issued a decision in 16501 Jamaica Ave., LLC v. Hara, 2020 NY… Read More
June 13, 2020 If Court Had No Jurisdiction to Enter Judgment, Payment of the Judgment Did Not Extinguish It and so it Could be Vacated
On May 27, 2020, the Second Department issued a decision in Yellowbook, Inc. v. Hedge, 2020 NY Slip … Read More
January 26, 2020 Bare Assertion of Law Office Failure Insufficient to Justify Vacating Default Judgment
On January 15, 2020, the Second Department issued a decision in Deutsche Bank Natl. Trust Co. v. Fis… Read More
January 21, 2020 Court Vacates Default Because Lawyer, Not Client, Was to Blame for Failure to Appear at Court Conferences
On January 7, 2020, Justice Borrok of the New York County Commercial Division issued a decision in E… Read More
January 16, 2020 Court Refuses to Vacate Default Judgment Despite Conclusory Assertions That Service Not Received When Defendant Admitted Being Aware of the Action
On January 2, 2020, the First Department issued a decision in Fisher v. Lewis Constr. NYC Inc., 2020… Read More
January 4, 2020 Defendant's Incarceration Not Reasonable Excuse for Default When Defendant Was Represented by Counsel
On December 19, 2019, the First Department issued a decision in Matter of Wimbledon Fin. Master Fund… Read More
October 5, 2019 Default Judgment Denied Due to Failure to Prove Damages; Plaintiff Allowed to Take Discovery and Renew Motion
On September 27, 2019, Justice Schecter of the New York County Commercial Division issued a decision… Read More
September 30, 2019 Defendant Fails to Provide Adequate Basis for Vacating Default
On September 25, 2019, the Second Department issued a decision in Redbridge Bedford, LLC v 159 N. 3r… Read More
September 21, 2019 Court Erred in Vacating Default When There Was No Reasonable Excuse for the Default
On September 11, 2019, the Second Department issued a decision in EMC Mtge. Corp. v. Walker, 2019 NY… Read More
September 18, 2019 Dismissal of Foreclosure Action for Failure to Prosecute Vacated
On September 11, 2019, the Second Department issued a decision in U.S. Bank Natl. Assn. v. Spence, 2… Read More
August 3, 2019 Failure Timely to Move for Default Judgment Leads to Dismissal of Claim
On July 17, 2019, the Second Department issued a decision in U.S. Bank N.A. v. White, 2019 NY Slip O… Read More
July 9, 2019 Corporate Defendant's Mail Delivery Problems Not Basis for Vacating Default Judgment
On June 17, 2019, Justice Borrok of the New York County Commercial Division issued a decision in Fis… Read More
June 19, 2019 Court Denies Default Judgment for Lack of Evidence Supporting Plaintiff's Claim
On June 6, 2019, Justice Ostrager of the New York County Commercial Division issued a decision in St… Read More
April 20, 2019 Court Grants Default Judgment; No Good Cause Shown for Failure Timely to Answer
On March 25, 2019, Justice Schecter of the New York County Commercial Division issued a decision in… Read More
April 16, 2019 Failure to Seek Default Judgment Within One Year of Default Results in Dismissal of Claims
On March 13, 2019, Justice Knipel of the Kings County Commercial Division issued a decision in Matte… Read More
April 3, 2019 Court Declines to Issue Declaratory Judgment on Default; Hearing Necessary
On March 14, 2019, Justice Masley of the New York County Commercial Division issued a decision in W… Read More
March 9, 2019 Defendant Granted Default Judgment on its Counterclaims Against Plaintiff
On February 8, 2019, Justice Masley of the New York County Commercial Division issued a decision in … Read More
October 8, 2018 No Appeal From Default Judgment; Appellant Should Have Moved to Vacate and Appealed The Denial
On September 28, 2018, the Fourth Department issued a decision in Montanaro v. Weichert, 2018 NY Sl… Read More
May 28, 2018 Court Erred by Striking Answer for Failure to Appear at Conference Where No Evidence Party Had Notice of Conference
On May 23, 2018, the Second Department issued a decision in Notaro v. Performance Team, 2018 NY Slip… Read More
May 24, 2018 Order Vacating Default Judgment Reversed and Remanded for Traverse Hearing on Service
On May 17, 2018, the First Department issued a decision in Noah Bank v. Hudson Produce, Inc., 2018 N… Read More
October 22, 2017 Default Judgment Vacated Because of Possible Misrepresentations in Complaint
On October 10, 2017, Justice Knipel of the Kings County Commercial Division issued a decision in Dea… Read More
August 21, 2017 Court Should Not Have Vacated Default Judgment Where There Was No Reasonable Excuse for Default
On August 16, 2017, the Second Department issued a decision in OneWest Bank, FSB v. Singer, 2017 NY … Read More
March 17, 2017 Court Properly Granted Default Judgment; No Reasonable Excuse for Default
On March 1, 2017, the Second Department issued a decision in Jing Shan Chen v. R & K 51 Realty, Inc.… Read More
February 24, 2017 Default Judgment Denied For Failure to Allege or Provide Facts Showing Liability
On February 10, 2017, Justice Kornreich of the New York County Commercial Division issued a decision… Read More
December 7, 2016 Default Judgment Reversed; Law Office Failure Sufficient Excuse
On November 29, 2016, the First Department issued a decision in Cheri Restaurant Inc. v. Eoche, 2016… Read More
December 4, 2016 Court Excuses Untimely Motion for Default Judgment
On November 21, 2016, Justice Hudson of the Suffolk County Commercial division issued a decision in … Read More
September 10, 2016 Untimely Motion for Default Judgment Dismissed
On August 24, 2016, Justice Ostrager of the New York County Commercial Division issued a decision in… Read More
August 17, 2016 Inquest Required in Default if Insufficient Evidence of Damages
On August 3, 2016, Justice Bransten of the New York County Commercial Division issued a decision in … Read More
March 20, 2016 E-Filing Error Reasonable Excuse to Support Vacating Default Judgment
On March 11, 2016, Justice Demarest of the Kings County Commercial Division issued a decision in Her… Read More
August 24, 2015 Case Cannot be Dismissed as Abandoned Unless Note of Issue Has Been Filed
On August 6, 2015, Justice Rosenbaum of the Monroe County Commercial Division issued a decision in G… Read More
August 20, 2015 Default Not Vacated Because of Lack of Reasonable Excuse
On August 12, 2015, the Second Department issued a decision in Aurora Loan Servs., LLC v. Lucero, 20… Read More
July 13, 2015 Action Dismissed as Abandoned Because Plaintiff Had No Reasonable Excuse for Not Prosecuting Case
On June 17, 2015, the Second Department issued a decision in Ohio Savings Bank v. Decaudin, 2015 NY … Read More
June 27, 2015 Default Judgments Reversed for Insufficient Proof of Service
On June 19, 2015, the Fourth Department issued a decision in Interboro Insurance Co. v. Tahir, 2015 … Read More
May 12, 2015 Counsel Fails to Demonstrate Law Office Failure Sufficient to Justify Vacating Default
On May 8, 2015, Justice Oing of the New York County Commercial Division issued a decision in Ludwigs… Read More
January 31, 2015 Court Accepts Late Reply to Counterclaim Where Delay Was Result of Law Office Failure
On January 20, 2015, Justice Kornreich of the New York County Commercial Division issued a decision … Read More
December 8, 2014 Conclusory Allegations of Law Office Failure Insufficient to Justify Vacating Default Judgment
On December 3, 2014, the Second Department issued a decision in Neilson v. 6D Farm Corp., 2014 NY Sl… Read More
October 4, 2014 Law Office Failure Good Cause for Failure Timely to Answer
On September 23, 2014, the First Department issued a decision in Metropolitan Property & Casualt… Read More
August 24, 2014 Court Refuses to Vacate Default Judgment Where Defendant Provides no Reasonable Excuse for his Failure to Answer
On August 5, 2014, Justice Whelan of the Suffolk County Commercial Division issued a decision in Wel… Read More
March 26, 2014 Default Judgment Not Vacated When No Reasonable Excuse is Offered for the Default
On March 25, 2014, the First Department issued a decision in Sunrise Capital Partners Management LLC… Read More
December 31, 2013 Default Judgment Against Corporation in Favor of its Sole Employee Vacated
On December 4, 2013, Justice Schweitzer of the New York County Commercial Division issued a decision… Read More
December 22, 2013 Inability to Read or Write English Does Not Excuse Failure to Answer
On November 11, 2013, Justice Whelan of the Suffolk County Commercial Division issued a decision in … Read More
November 8, 2013 Default Judgment Should Be Entered Absent Specific Evidence of Lack of Service or Excuse for the Failure to Answer
On November 6, 2013, the Second Department issued a decision in Loaiza v. Guzman, 2013 NY Slip Op. 0… Read More