June 11, 2013

Lack of service as the basis for a motion to vacate a judgment.

Practice point:  The Supreme Court properly denied, without a hearing, that branch of defendant's motion, pursuant to CPLR 5015(a)(4), to vacate the judgment of foreclosure and sale. The process server's affidavits of service constituted prima facie evidence that the appellant was validly served pursuant to CPLR 308(2)  Since the appellant never denied the specific facts contained in the process server's affidavit, no hearing was required.

Student note: Insofar as defendant moved pursuant to CPLR 5015(a)(1) to vacate her default, she failed to establish a reasonable excuse since the only excuse proffered was that was not served with process.
Similarly, defendant was not entitled to relief under CPLR 317 since she failed to demonstrate that she did not receive actual notice of the summons and complaint in time to defend.  The mere denial of receipt of the summons and complaint does not .establish lack of actual notice for the purpose of CPLR 317.

Case:  Bank of N.Y. v. Samuels, NY Slip Op 03858 (2d Dept. 2013).

Here is the decision.

Tomorrow's issue: Breach of fiduciary duty and the business judgment rule.