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AFCO Credit Corp. v. Eshaghian
Citations: 217 A.D.2d 676; 630 N.Y.S.2d 94; 1995 N.Y. App. Div. LEXIS 8196
Court: Appellate Division of the Supreme Court of the State of New York; July 31, 1995; New York; State Appellate Court
The Supreme Court of Nassau County's order, dated May 10, 1994, denying the plaintiff's motion for summary judgment in lieu of complaint under CPLR 3213 has been reversed, with costs awarded to the plaintiff. The plaintiff, a premium financing company, financed $16,826.08 for the defendants’ insurance premiums totaling $21,033.08 under a Premium Finance Agreement. The defendants made an initial down payment and one subsequent payment before their insurer canceled the policy due to an alleged debt of $32,462.43 in unpaid premiums. In response, the defendants refused to pay the remaining sums due under the agreement and filed counterclaims against the plaintiff, alleging a breach of duty to compel the insurer to reinstate the policy. The Supreme Court initially denied the plaintiff's motion, citing questions about the policy's existence. However, the appellate court found the agreement to be a straightforward instrument for the payment of money, lacking any obligations on the plaintiff's part regarding disputes between the defendants and their insurer. The defendants did not establish any valid defenses or demonstrate a direct connection between the plaintiff's actions and their obligations. Thus, the appellate court granted the plaintiff's motion for summary judgment, severed the defendants’ counterclaims, and mandated that the defendants formally plead their counterclaims within 10 days of receiving the decision; failure to do so would result in dismissal of those counterclaims.