Key Takeaway
New York court clarifies that reasonable excuse standards are relaxed for short-term defaults in no-fault insurance cases, providing relief for late responses.
Understanding Relaxed Standards for Short-Term Defaults in No-Fault Cases
When dealing with New York no-fault insurance litigation, timing is crucial for both plaintiffs and defendants. However, New York courts recognize that not every late filing deserves the same level of scrutiny. A recent appellate decision clarifies an important principle: when a default occurs for only a short period, courts apply more lenient standards for what constitutes a “reasonable excuse.”
This concept becomes particularly relevant in no-fault insurance disputes, where insurance companies and healthcare providers frequently engage in litigation over claim denials and payment disputes. Understanding how courts evaluate defaults can significantly impact case strategy and outcomes.
The relaxed standard for short-term defaults provides important practical guidance for practitioners navigating the complexities of CPLR procedural requirements in no-fault cases.
Jason Tenenbaum’s Analysis:
P&H Painting, Inc. v Flintlock Constr. Servs., LLC, 2020 NY Slip Op 00603 (2d Dept. 2020)
” Although the general rule is that in order to vacate a default, a party must demonstrate a reasonable excuse for the default and a potentially meritorious defense (see CPLR 5015), the sufficiency of an excuse is not as significant where the default is only a short period (see Vallario v 25 W. 24th St. Flatiron, LLC, 149 AD3d 791, 792-793; Chakmakian v Maroney, 78 AD3d 1103, 1104).”
For every Plaintiff who rejects answers that are less than 2 months late (Arias v First Presbyt. Church in Jamaica, 97 AD3d 712, 712 (2d Dept 2012)(less than two months considered short), be assured the refrain of “failure to establish a reasonable excuse” shall fall on hollow ground, with costs and disbursements.
Key Takeaway
Courts apply relaxed reasonable excuse standards when defaults occur for short periods (typically less than two months). This means defendants have a better chance of successfully vacating defaults when their late responses fall within this timeframe, making overly aggressive rejection of short-term late answers a risky strategy for plaintiffs.
Common Questions
Frequently Asked Questions
What is New York's no-fault insurance system?
New York's no-fault insurance system requires all drivers to carry Personal Injury Protection (PIP) coverage. This pays for medical expenses and lost wages regardless of who caused the accident, up to policy limits. However, you can only sue for additional damages if you meet the 'serious injury' threshold.
