Farkas v. Farkas

40 A.D.3d 207, 835 N.Y.S.2d 118
Appellate Division of the Supreme Court of the State of New York·Decided May 1, 2007·Published·Cited by 2 cases

Opinion

Order and judgment (one paper), Supreme Court, New York County (Phyllis Gangel-Jacob, J.), entered June 23, 2005, awarding plaintiff $750,000 with interest from August 6, 2003, reversed, on the law, without costs, the judgment vacated and the claim underlying the judgment dismissed as abandoned pursuant to 22 NYCRR 202.48 (b).

The Court of Appeals has recently made it clear that “statutory time frames—like court-ordered time frames—are not options, they are requirements, to be taken seriously by the parties” (Miceli v State Farm Mut. Auto. Ins. Co., 3 NY3d 725, 726 [2004] [citation omitted], following Brill v City of New York, 2 NY3d 648 [2004]). Thus, where a statute or court rule prescribes a limited time frame in which to take a procedural step in litigation, and states that a party’s failure to act within that time frame will be excused only upon a showing of “good cause,” such a showing requires demonstrating, as the dissent puts it, “more . . . than [the] merit. . . [of] the underlying application and a lack of prejudice to the other party.” This bench is unanimous in holding that this principle applies in the instant case, in which plaintiff failed to comply with the 60-day time frame for the submission of a judgment to the court for signature (Uniform Rules for Trial Cts [22 NYCRR] § 202.48 [a], [b]). Because plaintiff has failed to show good cause for her failure to comply with the time frame set forth in the Uniform Rules, we are constrained to reverse and vacate the judgment.

The dissent, while agreeing that a showing of “good cause” in this case requires plaintiff to provide “[a] ‘satisfactory explanation’ . . . for not meeting the 60-day time frame of section 202.48,” seems to hold that this standard is satisfied wherever the judgment in question arises from a “complex matrix of litigation” and the adverse party is, colloquially speaking, a “bad guy” (a term that indisputably applies to defendant). In view of these purportedly “unique circumstances,” the dissent deems excusable the entirety of plaintiffs 4½-year delay in submitting a judgment, even though the only reason the dissent can find for plaintiff’s last 21 months of delay is that she was actively litigating other issues against defendant, and (due to defendant’s [208]*208wrongful conduct) could not have immediately enforced the judgment in any event. Not only does the dissent not adduce any specific factor that impeded plaintiffs ability to submit a judgment during the final 21 months of the period at issue, the record contains an admission by plaintiffs counsel that the failure to timely submit a judgment was the result of counsel’s own “oversight.” In our view, excusing plaintiffs failure to comply with the 60-day time frame under these circumstances is tantamount to abolishing the requirement of “good cause” in any case in which the court finds it distasteful to enforce the rule. We see no warrant for such a departure from the approach mandated by the Court of Appeals’ recent case law.

This appeal arises from a bitterly contested divorce action that was commenced in 1991. One of the matters at issue was a debt the parties owed to Chemical Bank, based on an equity line of credit defendant husband had obtained by pledging as security the cooperative shares assigned to the marital residence. Chemical Bank commenced a foreclosure action against the parties to recover this debt in 1994. The April 1999 judgment of divorce directed defendant to pay all sums due Chemical Bank within 30 days, failing which “plaintiff [wife] shall be entitled to enter a money judgment against defendant for the total amount due and owing to Chemical Bank without further order.”

Defendant did not obey the court’s directive to pay the parties’ debt to Chemical Bank. Accordingly, in June 2000, plaintiff moved for entry of a money judgment in her favor against defendant in the amount of $984,401.17, which was then the amount Chemical Bank claimed the parties owed it. By order dated October 13, 2000, and entered October 17, 2000, Supreme Court granted this application, providing that “plaintiff may settle the judgment thereon.” The relevant decretal paragraph further provided that, “[u]pon plaintiffs suggestion, such judgment may contain language staying execution thereon pending determination or other disposition of the Chemical Bank foreclosure action.”

Although the order granting plaintiffs application for judgment in the Chemical Bank matter was entered on October 17, 2000, it was not until May 2, 2005—4½ years later—that plaintiff finally served defendant with a notice of settlement and a proposed judgment. The proposed judgment recited that plaintiff and Chemical Bank had settled the foreclosure action for $750,000.00 on or about August 6, 2003. Apparently based on this development, the proposed judgment was in the principal amount of $750,000.00 (rather than $984,401.17, the amount [209]*209stated in the October 2000 order), with interest to run from August 6, 2003. Defendant opposed entry of the proposed judgment, arguing that it was untimely under 22 NYCRR 202.48 (a), more than 60 days having passed since entry of the order directing settlement of the judgment.1 Therefore, defendant argued, the action should be deemed abandoned pursuant to 22 NYCRR 202.48 (b), since plaintiff had not shown “good cause” for the delay.2 On June 20, 2005, the court, without making any finding on the “good cause” issue, signed the judgment submitted by plaintiff without material amendment, and it was entered on June 23, 2005.3 Defendant now appeals.

Although we agree that there was arguably good cause for delaying settlement of the judgment until after the Chemical Bank foreclosure action was settled in August 2003, the record reveals no justification for plaintiffs failure to submit a judgment for an additional year and nine months thereafter. The relevant portion of the October 2000 order granted plaintiffs application for judgment in the amount of the parties’ debt to Chemical Bank, which was being litigated in the foreclosure action. While the foreclosure action was still pending, the amount of the debt to Chemical Bank was undetermined (as recognized by the October 2000 order itself), and, therefore, plaintiffs failure to submit a judgment during the foreclosure action’s pendency was at least arguably justifiable. However, once the foreclosure action was settled on or about August 6, 2003, the amount of plaintiffs indebtedness to Chemical Bank was finally determined, and no reason remained for plaintiff to continue to delay her submission of a judgment.

As the dissent appears to recognize, plaintiffs failure to comply with the clear mandate of the Uniform Rules is not jus[210]*210tilled, either by the lack of prejudice to defendant from the late submission of the judgment or by the merit of the claim on which the judgment is based (cf. Brill, 2 NY3d at 652 [“good cause” for a late summary judgment motion under CPLR 3212 (a) “requires a showing of good cause for the delay in making the motion—a satisfactory explanation for the untimeliness— rather than simply permitting meritorious, nonprejudicial filings, however tardy”]). The dissent nonetheless claims to find the “good cause” required to save plaintiffs judgment in the circumstance that, throughout the period in question, the parties were embroiled in “strenuous legal battles fought simultaneously on a variety of fronts,” and that such continuing litigation was necessitated by defendant’s bad faith efforts to avoid paying his fully adjudicated legal obligations to plaintiff.

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Farkas v. Farkas, 40 A.D.3d 207, 835 N.Y.S.2d 118 (N.Y. Ct. App. 2007).

40 A.D.3d 207 (Farkas v. Farkas) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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