March 31, 2010

Legion Ins. Co. v James (2010 NY Slip Op 50593(U))

Headnote

The relevant facts considered by the court were that the plaintiff was seeking to recover the amount paid in no-fault benefits as a result of injuries sustained by its insureds in a motor vehicle accident. The defendant failed to timely appear or answer, resulting in a default judgment being entered against him. After a stipulation in 2007, the default judgment was vacated and the defendant's affidavit was deemed his answer. The case was set for trial, but the defendant failed to appear, resulting in the reinstatement of the default judgment. The main issue decided was whether the Civil Court improvidently exercised its discretion in determining that the defendant established a reasonable excuse for his default and a meritorious defense to the action. The holding of the court was that the Civil Court did not improvidently exercise its discretion in determining that the defendant had established both a reasonable excuse for his default and a meritorious defense to the action. The court affirmed the order to vacate the default judgment, stating that public policy favors the resolution of cases on the merits.

Reported in New York Official Reports at Legion Ins. Co. v James (2010 NY Slip Op 50593(U))

Legion Ins. Co. v James (2010 NY Slip Op 50593(U)) [*1]

Legion Ins. Co. v James

2010 NY Slip Op 50593(U) [27 Misc 3d 128(A)]

Decided on March 31, 2010

Appellate Term, Second Department

Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.

This opinion is uncorrected and will not be published in the printed Official Reports.

Decided on March 31, 2010

SUPREME COURT OF THE STATE OF NEW YORK

APPELLATE TERM: 2nd, 11th and 13th JUDICIAL DISTRICTS

PRESENT: : WESTON, J.P., GOLIA and RIOS, JJ
2009-937 Q C.

Legion Insurance Company a/s/o MILDRED GUZMAN, JOHN REYNA and BLANCA ZAMBRANO, Appellant,
against
David J. James, Respondent.

Appeal from an order of the Civil Court of the City of New York, Queens County (Timothy J. Dufficy, J.), entered December 11, 2008. The order granted defendant’s motion to vacate a default judgment.

ORDERED that the order is affirmed without costs.

In this subrogation action to recover the amount plaintiff paid in no-fault benefits as a result of the injuries its insureds sustained in a motor vehicle accident, defendant failed to timely appear or answer and, in July 2002, a default judgment was entered against him. Thereafter, defendant moved to vacate the default judgment. Pursuant to a stipulation entered into in June 2007, the default judgment was vacated and defendant’s affidavit submitted in support of his motion was deemed his answer. The case was subsequently set down for trial, at which defendant failed to appear. The default judgment was thereafter reinstated. Defendant then moved to vacate the default judgment, which motion was granted by order entered December 11, 2008. The instant appeal by plaintiff ensued.

Contrary to plaintiff’s contention, we find that the Civil Court did not improvidently exercise its discretion in determining that defendant established both a reasonable excuse for his default and a meritorious defense to the action. We note that public policy favors the resolution of cases on the merits (see Bunch v Dollar Budget, Inc., 12 AD3d 391 [2004]). Accordingly, the order is affirmed.

Weston, J.P., Golia and Rios, JJ., concur. [*2]
Decision Date: March 31, 2010