Opinion
March 1, 2001.
Order, Supreme Court, New York County (Robert Lippmann, J.), entered June 14, 2 000, which granted defendant's motion to vacate a default judgment in the amount of $116,405.31, unanimously reversed, on the law, without costs, the motion denied and the judgment and restraining order reinstated.
Andrew G. Lipkin, for plaintiff-appellant.
Eric M. Davis, for defendant-respondent.
Before: Nardelli, J.P., Williams, Tom, Wallach, Friedman, JJ.
In order to vacate the default judgment, defendant needed to establish both a reasonable excuse and a meritorious defense (see, Goncalves v. Stuyvesant Dev. Assocs., 232 A.D.2d 275; Dimitratos v. City of New York, 180 A.D.2d 414). It succeeded in the former, but failed as to the latter. Defendant's contention, that it withheld payment of monies concededly due and owing to plaintiff under their contract because plaintiff allegedly sought to steal future business from it, is no defense to plaintiff's breach of contract claim. The equitable doctrine of unclean hands does not bar plaintiff's recovery under these circumstances (see, 518 East 80th Street Co., L.L.C. v. Smith, 251 A.D.2d 2 15, 216).
THIS CONSTITUTES THE DECISION AND ORDER OF SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.