Crespo v. A.D.A. Management

292 A.D.2d 5, 739 N.Y.S.2d 49, 2002 N.Y. App. Div. LEXIS 2420
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 12, 2002
StatusPublished
Cited by40 cases

This text of 292 A.D.2d 5 (Crespo v. A.D.A. Management) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crespo v. A.D.A. Management, 292 A.D.2d 5, 739 N.Y.S.2d 49, 2002 N.Y. App. Div. LEXIS 2420 (N.Y. Ct. App. 2002).

Opinion

OPINION OF THE COURT

Sullivan, J.

In this personal injury action arising out of lead paint exposure at the apartment in which they resided, the injured plaintiff, an infant born on September 23, 1992, and her mother, who sues in both her representative and individual capacity, appeal from the grant of the motion of defendants Handy Associates, LLC and Finkelstein-Horgan, R.E., Inc., the owner and managing agent, respectively, of the premises involved, to vacate their default in appearing or answering the complaint. Given that defendants offered neither a valid excuse for their default nor a showing of a meritorious defense, both of which, under well settled law, are required to justify such relief, the motion court’s decision, for which no reasons were given, was an abuse of discretion.

Handy Associates, then located at 670 White Plains Road in Scarsdale, New York, as was Finkelstein-Horgan, took title to the subject apartment building, located, at 2585 Grand Concourse in the Bronx, in September 1996. Sometime before the commencement of this action in June 1999, both defendants moved to 111 Brook Street, Scarsdale, New York. After filing a summons and verified complaint with the Clerk of Bronx County on June 10, 1999, plaintiffs thereafter, on or about June 24, 1999, served a supplemental summons and amended verified complaint upon defendants by delivering the same, with the necessary filing fee, to the New York Secretary of State pursuant to Business Corporation Law § 306 (b) and Limited Liability Company Law § 303. Plaintiffs also person[7]*7ally served defendants, on or about June 30, 1999, pursuant to CPLR 311 (a) (personal service on a corporation) and 311-a (a) (personal service on limited liability companies), by delivering the supplemental summons and amended verified complaint to a Marcos Cortez as “general agent” at defendants’ new offices. According to plaintiffs’ affidavit of service, Mr. Cortez accepted service on defendants’ behalf at 111 Brook Avenue, Scarsdale, New York.

Subsequently, on or about August 9, 1999, plaintiffs sent each defendant, by certified mail, a letter advising them of the prior service of process upon them through the Secretary of State and by delivery to Mr. Cortez as their “general agent” and that unless an answer was received in 10 days, plaintiffs would request a default judgment. The mailings also included a third copy of the supplemental summons and amended verified complaint. An affidavit of mailing as to each letter was executed on August 10, 1999. Plaintiffs received signed, certified mailing receipts acknowledging delivery of these letters on August 12, 1999.

On March 2, 2000, more than 20 days after the additional copy of the supplemental summons and amended verified complaint with notice had been mailed to defendants, as required by CPLR 3215 (g) (4), plaintiffs moved for a default. The supporting papers included an affidavit of merits from the infant’s mother, an affirmation reciting that service of the pleadings had been made pursuant to CPLR 311 (a) (1) by delivery of the pleadings to the Secretary of State and affidavits of service attesting to such service. Supreme Court granted the motion by order entered June 9, 2000, a copy of which, with notice of entry, was served upon each defendant on or about June 30, 2000 by mail addressed to them at 111 Brook Avenue, Scars-dale, New York.

On September 5, 2000, defendants moved, pursuant to CPLR 5015, to vacate the default. In a supporting affidavit, Steven Finkelstein, a member of Mandy Associates and president of Finkelstein-Morgan, stated that defendants had moved to 111 Brook Street, Scarsdale, IV2 years ago, and shortly before the commencement of the action; that “[t]o the best of [his] knowledge at no time did [he] ever receive the [s]ummons and Mom-plaint from the Secretary of State”; that “[he had] no recollection of ever receiving the [n]otice of [m]otion which was apparently sent to an incorrect address” — 111 Brook Avenue rather than 111 Brook Street — although, as he conceded, on July 5, 2000, he received a copy of the order granting plaintiffs a default.

[8]*8As for the merits, Mr. Finkelstein. averred that Mandy Associates had taken title to 2585 Grand Concourse on September 18, 1996, and that prior to the purchase a codefendant, Ionic Painting Corp., had been retained to paint the premises, which had also been painted in January 1996 by another codefendant, Nick Sakatis; that “[a]t no time prior to the institution of this lawsuit, was there evert ] any notification as to any claim or problem involving lead paint in [a]partments 23 and 24 of this building,” that the complaint alleged lead paint contamination for “a substantial period” prior to September 18,1996, and that after that date defendants had no knowledge of an ongoing lead paint problem.

In opposition, plaintiffs argued that jurisdiction had been obtained over defendants as a matter of law by delivery of the pleadings to the Secretary of State in accordance with statutory requirements and that it was defendants’ duty to keep the Secretary of State apprised of their current address at all times. They pointed out that they had also personally served defendants; that they had sent, by certified mail notifying defendants of their default, a third set of pleadings to “111 Brook Avenue,” Scarsdale, for which they received signed receipts; that they had sent defendants a total of eight documents addressed to “111 Brook Avenue,” none of which had been returned as undeliverable; and that defendants acknowledged receipt of the default order with notice of entry, which, like all the other mailings, had been sent to 111 Brook Avenue.

With respect to the defenses asserted, plaintiff submitted as documentary proof records of the New York City Department of Health indicating numerous notices of a continuing lead problem in apartments 23 and 24 at 2585 Grand Concourse through at least January 1998. Plaintiffs also offered evidence that in Juné 1997 defendants had hired their own lead paint testing company, which confirmed the existence of a lead problem at the premises.

In their reply, defendants submitted an attorney’s affirmation asserting that Marcos Cortez was a receptionist not authorized to accept service on defendants’ behalf under the Business Corporation Law, the Limited Liability Company Law or the CPLR. No other proof was offered to support Cortez’s claimed lack of authority to accept service for defendants. Defendants also cited plaintiffs’ failure to file an affidavit of [9]*9mailing, pursuant to CPLR 3215 (g) (4) (i) and (ii), as to the required additional service of the summons and notice before entry of a default judgment. In a sur-reply, plaintiffs submitted the requisite affidavits of mailing. As noted, the motion court, without comment or explanation, granted the motion to vacate the default.

It is axiomatic that the granting of relief from a default judgment rests within the courts sound discretion. The Appellate Division may review the determination for an abuse of discretion or, even in the absence of abuse, may substitute, in its place, its own discretionary determination. (Ackerson v Stragmaglia, 176 AD2d 602, 605, citing Brady v Ottaway Newspapers, 63 NY2d 1031.) An application brought pursuant to CPLR 5015 to be relieved from a judgment or order entered on default requires a showing of a justifiable excuse and legal merit to the claim or defense asserted. (See, Salemo v Geller, 260 AD2d 153; Cipriano v Hank,

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Bluebook (online)
292 A.D.2d 5, 739 N.Y.S.2d 49, 2002 N.Y. App. Div. LEXIS 2420, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crespo-v-ada-management-nyappdiv-2002.