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DEFAULT VACATED IN THE “INTERESTS OF SUBSTANTIAL JUSTICE”

UNCLEAR WHETHER WIFE HAD SIGNED AGREEMENT OR HAD OBLIGATION TO PAY

After a default judgment was entered against her, S.L. moved to vacate her default. And when the New York County Civil Court denied that request, she appealed.

On its review of the dispute, the Appellate Term, First Department, noted that S.L.’s contentions that she had not been served with the underlying legal paperwork were “conclusory” in nature, and that her claims that she "did not receive the court papers" and that "the summons and complaint were not served,” failed to sufficiently “rebut the presumption of proper service.”

Yet, “in the interests of substantial justice,” it opted to “modify” the underlying determination and vacated the default. Apparently, there was a question as to whether S.L. had signed the agreement upon which the plaintiff’s claim was based on. While her husband’s signature appeared twice, it was not clear whether he had the capacity to sign as her “agent.” Additionally, S.L. purported to have notified the plaintiff, a year prior to the action’s maintenance, that she was in the process of divorcing her husband and that he (pursuant to a court order) was solely obligated to honor that contract.

Given that backdrop, the AT thought it best that the matter be decided “on the merits and not on default.”

Who do you default for that?

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DECISION

Churchill Corporate Servs., Inc. v S.L.

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