From Casetext: Smarter Legal Research

3331102 St. LLC v. Newport Beach Holdings LLC

Supreme Court of New York, First Department
May 12, 2022
2022 N.Y. Slip Op. 3170 (N.Y. App. Div. 2022)

Opinion

Appeal No. 15941 Index No. 156870/18Case No. 2021-02166

05-12-2022

3331102 St. LLC, Plaintiff-Respondent, v. Newport Beach Holdings LLC, Defendant-Appellant. Wilmington PT Corp., Nonparty Appellant. Appeal No. 15941 Case No. 2021-02166

Hasbani & Light, P.C., New York (Danielle Light of counsel), for Newport Beach Holdings LLC, appellant. Massoud & Pashkoff, LLP, New York (Ahmed A. Massoud of counsel), for respondent.


Hasbani & Light, P.C., New York (Danielle Light of counsel), for Newport Beach Holdings LLC, appellant.

Massoud & Pashkoff, LLP, New York (Ahmed A. Massoud of counsel), for respondent.

Before: Gische, J.P., Scarpulla, Mendez, Shulman, Higgitt, JJ.

Order, Supreme Court, New York County (Barbara Jaffe, J.), entered on or about February 26, 2021, which denied nonparty appellant's (Wilmington) motion to vacate the default judgment and be substituted as defendant, unanimously affirmed, without costs.

Supreme Court providently denied the motion. "A defendant moving pursuant to CPLR 5015(a)(3) to vacate a default based on intrinsic fraud, i.e., on the basis that the plaintiff's allegations in the complaint are false, must establish both a reasonable excuse for the default and a potentially meritorious defense to the action" (JPMorgan Chase Bank, N.A. v Multani, 196 A.D.3d 549, 550 [2d Dept 2021]; see also Chevalier v 368 E. 148th St. Assoc., LLC, 80 A.D.3d 411, 413 [1st Dept 2011]). The record demonstrates that defendant, a Nevada LLC, was validly served on July 25, 2018, through its registered agent, whereas the assignment transferring defendant's interest in the mortgage in question to Wilmington occurred on September 18, 2018. However, Wilmington failed to proffer any excuse for defendant's failure to answer.

Given Wilmington's failure "to provide an acceptable excuse for the default, it is unnecessary for this Court to address whether [it] demonstrated" a potentially meritorious defense (Luciano v Felix, 185 A.D.3d 469, 470 [1st Dept 2020]; accord Fernandez v Santos, 161 A.D.3d 473, 474 [1st Dept 2018]).

Finally, Wilmington does not "provide any evidence of fraud, mistake, inadvertence, surprise, or excusable neglect that would warrant vacatur in the interest of substantial justice" (Wells Fargo Bank, N.A. v Abakporo, 186 A.D.3d 652, 654 [2d Dept 2020]; see Matter of McKenna v County of Nassau, Off. of County Attorney, 61 N.Y.2d 739, 742 [1984]).


Summaries of

3331102 St. LLC v. Newport Beach Holdings LLC

Supreme Court of New York, First Department
May 12, 2022
2022 N.Y. Slip Op. 3170 (N.Y. App. Div. 2022)
Case details for

3331102 St. LLC v. Newport Beach Holdings LLC

Case Details

Full title:3331102 St. LLC, Plaintiff-Respondent, v. Newport Beach Holdings LLC…

Court:Supreme Court of New York, First Department

Date published: May 12, 2022

Citations

2022 N.Y. Slip Op. 3170 (N.Y. App. Div. 2022)