Joosten v. Gale

129 A.D.2d 531, 514 N.Y.S.2d 729, 1987 N.Y. App. Div. LEXIS 45204
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 28, 1987
StatusPublished
Cited by51 cases

This text of 129 A.D.2d 531 (Joosten v. Gale) 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
Joosten v. Gale, 129 A.D.2d 531, 514 N.Y.S.2d 729, 1987 N.Y. App. Div. LEXIS 45204 (N.Y. Ct. App. 1987).

Opinion

Motion by defendant-appellant for an order granting leave to reargue is granted, and, upon reargument, (1) the order of this court, dated February 10, 1987 [127 AD2d 1016], affirming the order of the Supreme Court (Amos Bowman, J.), entered December 19, 1985, which granted plaintiff-respondent’s motion for reargument of a prior order of the same court, and, upon reargument, denied defendant’s motion to vacate a judgment entered against her on April 8, 1985, is vacated, and (2) the order of December 19, 1985 is unanimously modified, on the law, to the extent of (a) vacating the order of the Supreme Court (Ira Gammerman, J.), dated April 10, 1984, which held plaintiff’s motion for a default judgment against defendant in abeyance pending a hearing on the issue of jurisdiction, (b) denying plaintiff’s motion for an order pursuant to CPLR 3215 granting a default judgment against defendant without prejudice to renewal upon proper papers including either a complaint verified by plaintiff or an affidavit sworn to by him setting forth the facts constituting the claim and the amount due, and (c) vacating the judgment of the Supreme Court, New York County, entered April 8, 1985, and otherwise affirmed, without costs.

The action was brought to recover on a promissory note in the amount of $25,000. Although a copy of the affidavit of service is not included in the record, service was allegedly made pursuant to CPLR 308 (2) by leaving a copy of the summons and complaint with the doorman of defendant’s New York City apartment building. Defendant, who says she was residing in Florida at the time of this alleged service, obtained notice of the action, but instead of answering, responded through Florida counsel by serving a "Notice of Special Appearance” stating that she had not resided in that apartment building for more than two years. Correctly regarding such special appearance to be a legal nullity, plaintiff moved for a default judgment. Plaintiff gave defendant notice of this motion (but see, CPLR 3215 [f] [1]; see also, 4 Weinstein-Korn-Miller, NY Civ Prac ¶ 3215.31), whereupon defendant retained a New York attorney and interposed opposition on the ground that the apartment building in question was not her [532]*532dwelling place or usual place of abode. She also stated that she was physically handicapped and could not travel to New York to defend the action, and that Florida was a better forum in which to try the case. Special Term (Gammerman, J.) held the motion in abeyance for a hearing before a Special Referee on the issue of whether defendant resided in the apartment building at the time service of process was allegedly made there.

Although defendant’s New York attorney had notice of the traverse, which was adjourned apparently on consent, neither defendant nor her attorney appeared thereat. The Special Referee nevertheless took proof of service, and issued a report finding service to have been proper and recommending that plaintiff’s motion for a default judgment be granted.

Plaintiffs motion to confirm the Special Referee’s report was made on notice to defendant’s New York attorney, but no opposition was interposed. Special Term (McCooe, J.) confirmed the report and directed entry of a default judgment in the amount of $25,000 with interest. Plaintiff thereupon caused a judgment to be entered, which with interest and costs amounted to $43,856. A copy of this judgment was served on defendant’s New York attorney.

Substituting lawyers, defendant then made a motion to vacate the judgment, arguing that her failure to appear at the traverse was excusable and that she had a strong case on the merits. With respect to the merits, she pointed out that the instrument sued upon does not contain words of negotiability, and asserted, among other things, that she never received value from the person to whom she gave this "I.O.U.” While defendant’s proposed defenses were convincing, her excuse for not appearing at the traverse was not, amounting to nothing more than a bald statement that she was never apprised of the fact that the traverse had been scheduled. Plaintiff’s opposition, consisting only of his attorney’s affirmation, made an impressive showing that defendant’s attorney knew of the traverse and that his failure to appear thereat was deliberate.

Special Term (Bowman, J.), apparently misapprehending that defendant was seeking to vacate the judgment on the ground that her failure to appear at the traverse was excusable, held her motion in abeyance for a second hearing on the issue of whether service was proper. Plaintiff, of course, immediately moved to reargue. Defendant’s opposition was vigorous, but plainly without merit. There was simply no getting around the fact that there could be no basis for directing a [533]*533second traverse absent a finding that defendant’s failure to appear at the first was excusable. Granting reargument, Special Term recalled its prior order directing a second traverse, and, finding that defendant failed to show a valid excuse for not appearing at the traverse, denied vacatur of the judgment on that ground notwithstanding possible merit to defendant’s proposed defenses. It was from this order that defendant took the appeal.

We unanimously affirmed without opinion, and continue to be of the view that defendant failed to offer a reasonable excuse for not appearing at the traverse. She claims that she was not aware that the traverse had been ordered, but the record shows that if she herself was not so aware, her New York attorney was, and nowhere does she explain why he failed to appear at the traverse on her behalf (see, Manufacturers Hanover Trust Co. v Cooper, 71 AD2d 881).

On reargument of the appeal, defendant’s attorney emphasizes, as he did on the appeal, the strong merits of defendant’s various proposed defenses and that she never had her day in court. None of this would warrant reargument. However, he concludes his affirmation by noting that the only proof that plaintiff offered in support of his motion for a default judgment was a complaint verified by his attorney, who had no personal knowledge of the transaction. This point was raised by defendant on the appeal, and, because overlooked, reargument should be granted.

The order on appeal granted a motion by plaintiff for reargument, and, upon reargument, denied a motion by defendant to vacate a judgment granted on default. That order was necessarily affected by the prior order confirming the Special Referee’s report and granting plaintiff a default judgment, which in turn was necessarily affected by the even earlier order directing a traverse on the issue of whether there was jurisdiction. Accordingly, this first order directing a traverse is subject to review (CPLR 5501 [a] [1]). We hold that Special Term, rather than directing a traverse, should have denied plaintiff’s motion for a default judgment without prejudice to renewal upon proper papers including proof compliant with CPLR 3215 (e).

Plaintiff moved for a default judgment arguing that defendant’s "Notice of Special Appearance” did not constitute an appearance in the action, and that she was therefore in default. Defendant opposed that motion on the ground that the service allegedly made pursuant to CPLR 308 (2) was ineffective to confer jurisdiction. Special Term directed a [534]*534traverse to resolve the jurisdictional issue raised by defendant, but, given the record that was before it, resolution of that issue was unnecessary. Just because the court has jurisdiction over a defaulting defendant does not mean that a default judgment automatically results.

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Bluebook (online)
129 A.D.2d 531, 514 N.Y.S.2d 729, 1987 N.Y. App. Div. LEXIS 45204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joosten-v-gale-nyappdiv-1987.