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Ramirez v. Islandia Executive Plaza, LLC
Citations: 92 A.D.3d 747; 939 N.Y.2d 100
Court: Appellate Division of the Supreme Court of the State of New York; February 13, 2012; New York; State Appellate Court
On July 13, 2009, the plaintiff initiated a lawsuit against Islandia Executive Plaza, LLC and Citibank, N.A. for personal injuries. A default judgment was entered against Islandia on January 21, 2010, due to its failure to appear or respond to the complaint. The Supreme Court ordered that damages against Islandia be assessed after the resolution of claims against Citibank, the nondefaulting defendant. Seven months later, Islandia sought to vacate the default judgment and file an answer, which the plaintiff opposed while requesting an immediate assessment of damages against Islandia. The Supreme Court granted Islandia’s motion and denied the plaintiff’s cross motion. On appeal, it was determined that while a defendant must show a reasonable excuse for a default and a potentially meritorious defense to vacate a default judgment, Islandia failed to demonstrate a viable defense despite presenting a reasonable excuse. Thus, the Supreme Court's decision to grant Islandia's motion was deemed an improper exercise of discretion. However, the denial of the plaintiff's cross motion was upheld, as the Supreme Court acted correctly in allowing the assessment of damages against Islandia to occur after the trial involving Citibank, in accordance with CPLR 3215(d). Other arguments presented by the parties were either deemed meritless or not addressed due to the court's ruling.