Key Takeaway
First Department reverses vacatur of default judgment due to insurer's inadequate excuse for two-year delay and lack of personal knowledge of office procedures.
This article is part of our ongoing defaults coverage, with 90 published articles analyzing defaults issues across New York State. Attorney Jason Tenenbaum brings 24+ years of hands-on experience to this analysis, drawing from his work on more than 1,000 appeals, over 100,000 no-fault cases, and recovery of over $100 million for clients throughout Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, and the Bronx. For personalized legal advice about how these principles apply to your specific situation, contact our Long Island office at (516) 750-0595 for a free consultation.
Default Judgment Reversal: When Excuses Fall Short
Default judgments in New York insurance litigation often hinge on whether defendants can provide reasonable excuses for their failure to respond to complaints. The case of ALFA Med. Supplies, Inc. v Allstate Ins. Co. demonstrates how courts scrutinize both the timeliness of responses and the adequacy of explanations offered by insurance companies.
This First Department decision is particularly noteworthy because reversals of default judgment vacaturs on reasonable excuse grounds are uncommon. The case highlights critical issues that frequently arise in default judgment proceedings involving insurance companies, particularly regarding proper office procedures and the quality of supporting affidavits.
Jason Tenenbaum’s Analysis:
ALFA Med. Supplies, Inc. v Allstate Ins. Co., 2016 NY Slip Op 50942(U)(App. Term 1st Dept. 2016)
(1) “Defendant-insurer failed to offer a reasonable excuse to adequately explain its two-year delay in answering the complaint in this action”
(2)“The affidavit of defendant’s claim representative, who was employed in defendant’s office in Hauppauge, New York, averred that there was no record of the summons and complaint in defendant’s computer system. However, the affiant failed to demonstrate personal knowledge of the office procedures put in place by defendant in connection with the handling of a summons and complaint received at defendant’s office in Lake Success, New York”
It is an infrequent occurrence to see the First Department reverse a vacatur of a default judgment on reasonable excuse grounds. I cannot help, notwithstanding the Philadelphia Insurance Co. case, that the two year delay in seeking to open the default proved fatal. CPLR 5015(a)(1) – the period is limited to one year following service with notice of entry of the order. However, the court has inherent discretion to disregard the one year period contained in the statute.
Key Takeaway
Insurance companies seeking to vacate default judgments must provide both reasonable excuses for delays and supporting affidavits from individuals with personal knowledge of relevant office procedures. A two-year delay in responding combined with inadequate procedural explanations can prove fatal to vacatur attempts, even when courts have discretionary power to overlook statutory time limits.
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Legal Context
Why This Matters for Your Case
New York law is among the most complex and nuanced in the country, with distinct procedural rules, substantive doctrines, and court systems that differ significantly from other jurisdictions. The Civil Practice Law and Rules (CPLR) governs every stage of civil litigation, from service of process through trial and appeal. The Appellate Division, Appellate Term, and Court of Appeals create a rich and ever-evolving body of case law that practitioners must follow.
Attorney Jason Tenenbaum has practiced across these areas for over 24 years, writing more than 1,000 appellate briefs and publishing over 2,353 legal articles that attorneys and clients rely on for guidance. The analysis in this article reflects real courtroom experience — from motion practice in Civil Court and Supreme Court to oral arguments before the Appellate Division — and a deep understanding of how New York courts actually apply the law in practice.
About This Topic
Default Judgments in New York Practice
Default judgments arise when a party fails to answer, appear, or respond within required time limits. Vacating a default under CPLR 5015 requires showing a reasonable excuse for the failure and a meritorious defense or cause of action. In no-fault practice, defaults occur frequently in arbitration and court proceedings, and the standards for granting and vacating defaults have generated substantial case law. These articles analyze default practice, restoration motions, and the circumstances under which courts excuse procedural failures.
90 published articles in Defaults
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Mar 17, 2021IDS?
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Feb 3, 2016An intentional default excused based upon court’s inherent power to vacate defaults
Court's inherent power to vacate default judgments in NY personal injury cases - Gurin v Pogge demonstrates when intentional defaults may be excused for substantial justice.
Dec 8, 2013Why Law Office Failure Excuses Must Be Detailed to Open Default Judgments in NY
Learn why NY courts require detailed law office failure excuses for default relief. Expert analysis of Second vs First Department standards. Call 516-750-0595.
Dec 12, 2009A new caveat on the one year period to enter a judgment
Court rules plaintiff's failure to enter default judgment within one year of calendar default constitutes abandonment under CPLR 3215(c), dismissing no-fault case.
Jul 21, 2018Common Questions
Frequently Asked Questions
What is a default in New York civil litigation?
A default occurs when a party fails to respond to a legal action within the required time frame — for example, failing to answer a complaint within 20 or 30 days of service under CPLR 320. When a defendant defaults, the plaintiff can seek a default judgment under CPLR 3215. However, a defaulting party can move to vacate the default under CPLR 5015(a) by showing a reasonable excuse for the delay and a meritorious defense to the action.
What constitutes a 'reasonable excuse' to vacate a default?
Courts evaluate reasonable excuse on a case-by-case basis. Accepted excuses can include law office failure (under certain circumstances), illness, lack of actual notice of the proceeding, or excusable neglect. However, mere neglect or carelessness is generally insufficient. The movant must also demonstrate a meritorious defense — meaning they have a viable defense to the underlying claim that warrants a determination on the merits.
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About the Author
Jason Tenenbaum, Esq.
Jason Tenenbaum is the founding attorney of the Law Office of Jason Tenenbaum, P.C., headquartered at 326 Walt Whitman Road, Suite C, Huntington Station, New York 11746. With over 24 years of experience since founding the firm in 2002, Jason has written more than 1,000 appeals, handled over 100,000 no-fault insurance cases, and recovered over $100 million for clients across Long Island, Nassau County, Suffolk County, Queens, Brooklyn, Manhattan, the Bronx, and Staten Island. He is one of the few attorneys in the state who both writes his own appellate briefs and tries his own cases.
Jason is admitted to practice in New York, New Jersey, Florida, Texas, Georgia, and Michigan state courts, as well as multiple federal courts. His 2,353+ published legal articles analyzing New York case law, procedural developments, and litigation strategy make him one of the most prolific legal commentators in the state. He earned his Juris Doctor from Syracuse University College of Law.
Disclaimer: This article is published by the Law Office of Jason Tenenbaum, P.C. for informational and educational purposes only. It does not constitute legal advice, and no attorney-client relationship is formed by reading this content. The legal principles discussed may not apply to your specific situation, and the law may have changed since this article was last updated.
New York law varies by jurisdiction — court decisions in one Appellate Division department may not be followed in another, and local court rules in Nassau County Supreme Court differ from those in Suffolk County Supreme Court, Kings County Civil Court, or Queens County Supreme Court. The Appellate Division, Second Department (which covers Long Island, Brooklyn, Queens, and Staten Island) and the Appellate Term (which hears appeals from lower courts) each have distinct procedural requirements and precedents that affect litigation strategy.
If you need legal help with a defaults matter, contact our office at (516) 750-0595 for a free consultation. We serve clients throughout Long Island (Huntington, Babylon, Islip, Brookhaven, Smithtown, Riverhead, Southampton, East Hampton), Nassau County (Hempstead, Garden City, Mineola, Great Neck, Manhasset, Freeport, Long Beach, Rockville Centre, Valley Stream, Westbury, Hicksville, Massapequa), Suffolk County (Hauppauge, Deer Park, Bay Shore, Central Islip, Patchogue, Brentwood), Queens, Brooklyn, Manhattan, the Bronx, Staten Island, and Westchester County. Prior results do not guarantee a similar outcome.