Key Takeaway
New York's Second Department outlines when law office failure constitutes excusable conduct for missing court appearances in this mortgage foreclosure case.
Default judgments in mortgage foreclosure cases are unfortunately common, often resulting from simple administrative oversights that can have devastating consequences for homeowners. When attorneys fail to appear on scheduled court dates, defendants face the very real possibility of losing their homes without having their defenses heard. However, New York courts recognize that certain types of law office failures may constitute “reasonable excuse” for missing court appearances, particularly when coupled with meritorious defenses.
The challenge for defendants seeking to vacate default judgments lies in demonstrating both a reasonable excuse for the default and a potentially viable defense to the underlying foreclosure action. Courts must balance the need for efficient case management against the fundamental principle that parties should have their day in court when circumstances warrant relief.
Jason Tenenbaum’s Analysis:
Bank of N.Y. Mellon v Faragalla, 2019 NY Slip Op 05641 (2d Dept. 2019)
It is not every day the Second Department outlines the law office failure that is deemed excusable. Sadly, this happens to many all too frequently.
“Under the circumstances presented here, the appellants set forth a reasonable excuse for their failure to appear at the centralized motion part of the Supreme Court on the return date of the plaintiff’s motion based on evidence of law office failure. In an affirmation, the appellants’ attorney explained that upon receiving the plaintiff’s motion, he directed his office’s legal assistant to note the return date of the motion on the office calendar, but that the return date had not been noted on the calendar. In addition, the appellants demonstrated a potentially meritorious defense based upon the statute of limitations”
Key Takeaway
This decision demonstrates that law office failure can constitute reasonable excuse when attorneys can show they took appropriate steps to calendar court dates but administrative breakdowns occurred. The presence of a potentially meritorious defense, such as statute of limitations issues, strengthens the case for relief. Courts examine both the excuse and underlying merits when determining whether to grant relief from defaults.
