May 30, 2006
New York & Presbyt. Hosp. v Allstate Ins. Co. (2006 NY Slip Op 04260)
https://www.beynensonlaw.com/case-law/new-york-presbyt-hosp-v-allstate-ins-co-2006-ny-slip-op-04260/
- Decided
- May 30, 2006
- Citation
- 2006 NY Slip Op 04260 · 29 AD3d 968
- Posture
- Default or vacatur
- Outcome
- Insurer prevailed
- Later treatment
- Followed in 1 later decision (see Cited by)
- Issues
- Defaults and vacatur
Posture, outcome, issues and treatment by other decisions are Beynenson Law’s classification. Treatment labels are assigned by a language model reading the citing decision; negative and appeal-history labels are checked by a second reader.
Summary
Editorial summary by Beynenson Law, not part of the court’s decision.
Reported in New York Official Reports at New York & Presbyt. Hosp. v Allstate Ins. Co. (2006 NY Slip Op 04260)
| New York & Presbyt. Hosp. v Allstate Ins. Co. |
| 2006 NY Slip Op 04260 [29 AD3d 968] |
| May 30, 2006 |
| Appellate Division, Second Department |
| Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. |
| New York and Presbyterian Hospital, as Assignee of Albert Klau, et al., Appellants, v Allstate Insurance Company, Respondent. |
—[*1]
In an action to recover no-fault insurance benefits under certain insurance contracts, the plaintiffs appeal, as limited by their brief, from so much of an order of the Supreme Court, Nassau County (Cozzens, J.), dated July 21, 2005, as granted the defendant’s motion to vacate a judgment of the same court entered December 8, 2004, which is in favor of the plaintiffs and against it in the principal sum of $43,425.51, upon the defendant’s failure to appear or answer, and to extend its time to answer.
Ordered that the order is affirmed insofar as appealed from, with costs.
Service upon the defendant was effectuated through delivery of the summons and complaint upon the Deputy Secretary of Insurance pursuant to Insurance Law § 1212. Although the defendant’s motion to vacate the default judgment was made pursuant to CPLR 5015 (a) (1), under the circumstances of this case, it may be treated as a motion made under CPLR 317 as well (see Eugene Di Lorenzo, Inc. v A.C. Dutton Lbr. Co., 67 NY2d 138, 142-143 [1986]). A defendant served with a summons other than by personal delivery or to an agent designated under CPLR 318 may obtain relief pursuant to CPLR 317 upon a showing that it did not receive notice of the summons in time to defend, and has a meritorious defense (see Marine v Federal Ins. Co., 293 AD2d 721 [2002]). Unlike [*2]a motion to vacate under CPLR 5015 (a) (1), it is unnecessary for a defendant seeking relief under CPLR 317 to demonstrate a reasonable excuse for its default (see Eugene Di Lorenzo, Inc. v A.C. Dutton Lbr. Co., supra at 141; Marinoff v Natty Realty Corp., 17 AD3d 412, 413 [2005]; Rifelli v Fireside Homes Corp., 152 AD2d 629, 631 [1989]; Simon & Schuster v Howe Plastics & Chems. Co., 105 AD2d 604, 605 [1984]). The defendant met its burden of showing that it did not receive actual notice of the summons in time to defend (see Marine v Federal Ins. Co., supra; cf. Kaperonis v Aetna Cas. & Sur. Co., 254 AD2d 334 [1998]; Board of Mgrs. of Landings at Patchogue Condominium v 263 Riv. Ave. Corp., 243 AD2d 668 [1997]; Fleetwood Park Corp. v Jerrick Waterproofing Co., 203 AD2d 238, 239 [1994]; Anchor Sav. Bank v Alpha Developers, 143 AD2d 711, 713-714 [1988]) and that its defenses are meritorious (see 11 NYCRR 65-3.8; Hospital for Joint Diseases v State Farm Mut. Auto. Ins. Co., 8 AD3d 533 [2004]; Presbyterian Hosp. in City of N.Y. v General Acc. Ins. Co. of Am., 229 AD2d 479 [1996]). Accordingly, the Supreme Court providently exercised its discretion in vacating the default judgment and extending the defendant’s time to answer. Miller, J.P., Ritter, Luciano, Spolzino and Dillon, JJ., concur.
Legal questions (2)
Questions of no-fault law this decision rules on, from our Legal Questions pages. Bars count the decisions on the question by year and court, coloured by category; circles are this decision and the decisions on the question it cites or that cite it. Point at a bar or circle for details. The categories and summaries are Beynenson Law’s classification, made by a language model and checked by a second reading.
Did the defaulting party show a reasonable excuse (or lack of notice) and a potentially meritorious defense or claim?
This decision: Excuse (or lack of actual notice under CPLR 317) and potentially meritorious defense or claim shown; default vacated or late answer allowed
Affirmed vacatur and extension of time to answer under CPLR 317 because the insurer served via the Superintendent showed it did not receive actual notice in time to defend and had meritorious defenses, needing no excuse.
Of the 170 decisions on this question in the Second Department courts and the Court of Appeals, 67 (this one included) are in the same category.
Was the insurer validly served with process, and does the court have personal jurisdiction over it?
This decision: Insurer validly served and subject to the court's jurisdiction, or service defect cured/excused (rules on the question, but another ground decided the case)
Held service was effectuated by delivery to the Deputy Secretary of Insurance under Insurance Law § 1212, which is not personal delivery, so CPLR 317 applied.
Of the 129 decisions on this question in the Second Department courts and the Court of Appeals, 31 (this one included) are in the same category.
Cited in this decision
- Hospital for Joint Diseases v State Farm Mut. Auto. Ins. Co. (2004 NY Slip Op 05413)The hospitals' first and fifth claims were dismissed because policy limits were exhausted and requested verification remained outstanding.
Cited by
A label shows how the later decision treated this one.
- Montefiore Med. Ctr. v Auto One Ins. Co. (2008 NY Slip Op 10596) FollowedThe insurer failed to establish a reasonable excuse for its default, and its denial of receipt did not rebut proof of proper service.
- Nyack Hosp. v Allstate Ins. Co. (2006 NY Slip Op 52233(U))The insurer lacked a meritorious defense to vacate its default because a completed hospital facility form replaced the requested no-fault application.
- Hospital for Joint Diseases v Lincoln Gen. Ins. Co. (2008 NY Slip Op 07619)The insurer obtained vacatur of its default by showing that it lacked actual notice in time to defend and might have a meritorious defense.
- Westchester Med. Ctr. v Philadelphia Indem. Ins. Co. (2010 NY Slip Op 00138)The insurer failed to justify vacating its default because its affidavit established neither a reasonable excuse nor a meritorious defense.
- Westchester Med. Ctr. v AIU Ins. Co. (2007 NY Slip Op 04285)The insurer's motion to vacate its default judgment under CPLR 317 was granted, and the hospital's contempt motion was denied.
- Nursing Personnel Homecare v New York Cent. Mut. Fire Ins. Co. (2010 NY Slip Op 50450(U))The insurer established lack of actual notice in time to defend and a meritorious policy-cancellation defense, warranting vacatur under CPLR 317.
Similar decisions
- New York & Presbyt. Hosp. v Auto One Ins. Co. (2006 NY Slip Op 02509)The insurer showed a reasonable excuse for its brief answering delay and potentially meritorious defenses, warranting default vacatur.
- New York & Presbyt. Hosp. v American Home Assur. Co. (2006 NY Slip Op 02510)The insurer established grounds to vacate its default through an excuse tied to a misspelled insured's name and a meritorious coverage defense.
- New York Hosp. Med. Ctr. of Queens v Insurance Co. of State of Pa. (2005 NY Slip Op 01691)The insurer failed to establish a meritorious defense required to vacate the provider's default judgment.
- New York Hosp. Med. Ctr. of Queens v Nationwide Mut. Ins. Co. (2014 NY Slip Op 06188)The insurer's clerical-oversight affidavit and potentially meritorious defense justified vacating its default judgment.
- New York & Presbyt. Hosp. v Travelers Prop. Cas. Ins. Co. (2006 NY Slip Op 02344)The insurer's motion for default vacatur and a late answer was granted based on a reasonable excuse and a meritorious defense.