July 3, 2022

Default judgment is denied.

The trial court properly denied plaintiff's motion for a default judgment. Defendants were technically in default when they failed to timely answer or move to dismiss after they filed their notice of appearance. However, as the trial court noted in the order on appeal, in an earlier hearing on the motion, the court had sua sponte allowed plaintiff to file a late proof of service. At the same time, the court granted defendants a 30-day extension to respond to the complaint, as of the date of the hearing. As the case docket makes clear, defendants responded to the complaint within that period. In addition, New York has a strong policy in favor of litigating matters on the merits.

MLS Real Estate Consultants, Inc. v. Eisenberg, NY Slip Op 04224 (1st Dep't June 30, 2022)

Here is the decision.