Lisa Black & Nicholas Paslow Obtain Vacatur of Default Judgment Against Owner in Labor Law Action

In a Rockland County Labor Law action, Plaintiff commenced an action for injuries sustained after a fall during a building renovation.  Plaintiff obtained a default judgment against the owner of the property.  Subsequently, the owner retained Black Marjieh & Sanford LLP after its general liability carrier denied coverage for the lawsuit based, in part, on the default judgment.

Black Marjieh & Sanford LLP successfully moved to vacate the default judgment against their client under CPLR §317.  Pursuant to this statute, a defendant must show that (1) that service was made in a manner other than personal delivery; (2) that it did not receive actual notice of the process in time to defend the action; (3) that it has a meritorious defense; and (4) that the motion was timely made.  The court found that defendant had made the requisite showing, noting that service by the Secretary of State on a corporate entity does not constitute personal delivery.

Following the decision, the owner’s carrier reversed its disclaimer and agreed to defend and indemnify our client without reservation.