Practice point: Sanctions may result from a motion to vacate a default judgment when, having had ample opportunity to avoid the judgment’s entry, movant failed to demonstrate either a reasonable excuse for the default or a meritorious defense to the counterclaims asserted.
Practitioners should note that a default is considered intentional when a party takes no steps to vacate it until after the judgment has been entered.
Case: Melnick v. Khoroushi, NY Slip Op 10206 (1st Dept. 2008)
The opinion is here.
Monday's issue: The business judgment rule.
