Thursday, May 4, 2017

The reasonability of an excuse for a default judgment.

Practice point:   It is considered a reasonable excuse if a defendant provides the summons and complaint to its insurance broker, and then the insurer fails to appoint counsel to appear in the action. However, it is an unreasonable excuse if the defendant asserts that it believed its insurer was acting, even though the defendant concedes receipt of the plaintiff's motion for leave to enter a default judgment.  Receipt of the motion puts the defendant on notice that, in actualty, the insurer has not answered the complaint.

Case:  Gecaj v. Gjonaj Realty & Mgt. Corp., NY Slip Op 03109 (1st Dep't April 25, 2017)

Here is the decision.

Tomorrow's issue: The doctrine of mootness applied to a construction project.