In another CPLR issue, the Appellate Division affirmed the order of the Supreme Court that allowed a defendant to open an entered default.
Rodgers v 66 E. Tremont Hgts. Hous. Dev. Fund Corp., 2010 NY Slip Op 00552 (1st Dept. 2010)
“In the case at bar, defendant submitted affidavits wherein it denied ever being served with process. However, upon receipt of a letter from plaintiff’s counsel which contained a copy of the pleadings, defendant immediately forwarded the correspondence and pleadings to its insurer. Thus, it was reasonable for defendant to believe that its insurer would take the appropriate action to appear and defend the action.”
Would the same result occur in the Second Department? Probably not. See here. A more detailed discussion is set forth here in CPLR blog land.