Understanding Time Limits for Challenging a New York Judgment
When seeking to vacate a judgment, consider four key subsections of CPLR § 5015:
- Excusable default
- Newly discovered evidence
- Fraud, misrepresentation, or misconduct by the opposing party
- Lack of jurisdiction to render the judgment
Consumer clients often rely on "excusable default" and "lack of jurisdiction." While these grounds are subject to court discretion, building a convincing case is essential to sway the judge in your favor.
The one-year time limit applies only under CPLR 5015(a)(1), when vacating a default for excusable neglect, and it runs from service of the judgment with notice of entry. The other subsections require filing within a ‘reasonable time,’ which courts determine based on the circumstances, often applying the doctrine of laches to assess delay.
Courts evaluate vacatur motions based on the sufficiency of the excuse and the merits of the defense, though in practice some courts may be sympathetic to consumer debtors. Remember that time is of the essence in these matters.
Caselaw: Time Limitations Vacating Defaults under CPLR § 5015
Time Limit for CPLR 5015(a)(1) Application: Vacatur motions under CPLR 5015(a) are subject to a one-year time limitation only under subdivision (a)(1) when the default is potentially excusable (Loeffler v Glasgow, 169 A.D.3d 1024, 94 N.Y.S.3d 607 [2nd Dep't. 2019]).
Commencement of One-Year Period: The one-year period starts from the "service" of the order or judgment with notice of entry, not merely its "entry," to ensure fairness (Loeffler v Glasgow, 169 A.D.3d 1024, 94 N.Y.S.3d 607 [2nd Dep't. 2019]).
Authority to Extend Time: CPLR 2004 allows extensions for some deadlines, but it does not extend the statutory one-year limit in CPLR 5015(a)(1). Courts generally lack authority to enlarge this period, typically only in extraordinary circumstances supported by precedent (Ibukun Ogunbekun v Strong Memorial Hospital, 181 A.D.3d 1189, 117 N.Y.S.3d 905 [4th Dep't. 2020]).
Discretionary Vacatur: Jurisdictional defects under CPLR 5015(a)(4) are not subject to the one-year limit, but for other grounds courts strictly enforce timeliness (Capital Equity Mgt., LLC v Carrozza, 65 Misc.3d 153[A], 119 N.Y.S.3d 691 [App. Term New York 2019]).
Two Layers of Reasonable Excuse: When a vacatur motion is filed after the one-year period, courts may require both an excuse for the delay in moving and an excuse for the underlying default (Diaz v Wykoff Heights Medical Center, 148 A.D.3d 778, 49 N.Y.S.3d 149 [2nd Dep't. 2017]).
Factors for Consideration: Courts consider factors such as the potential merit of the defense, the duration of delay, and the policy of deciding cases on their merits (Stern v Warren George, Inc., 82 A.D.3d 873, 918 N.Y.S.2d 355 [2nd Dep't. 2011]).
Impact of COVID-19: During COVID, executive orders tolled time limits between March 20, 2020, and November 3, 2020 (Brash v Richards). This tolling period has since expired (Brash v Richards, 195 A.D.3d 582, 149 N.Y.S.3d 560 [2nd Dep't. 2021]).
Timely Filings Recommended: It is advisable to file vacatur motions within the statutory time limit to avoid complications.
Meritorious Claim or Defense: Parties seeking vacatur under CPLR § 5015(a)(1) must also demonstrate a potentially meritorious claim or defense.
No Time Limit for CPLR 5015(a)(2)-(5) Motions: CPLR 5015(a)(2)–(a)(3) motions must be made within a reasonable time and may be barred by laches. True jurisdictional objections under (a)(4) are not barred by time limits or laches(North Side Sav. Bank v Rosati, 32 A.D.3d 921, 822 N.Y.S.2d 572 [2nd Dep't. 2006]).
Jurisdictional Vacatur: Motions asserting true lack of personal or subject matter jurisdiction are not barred by time limits or laches, provided the moving party submits compelling proof of the jurisdictional defect (Nemes v Tutino, 173 A.D.3d 16, 101 N.Y.S.3d 538 [4th Dep't. 2019]).
The Importance of Timeliness and Sufficient Documentation
While courts are generally lenient towards consumer debtors who have defaulted, we have witnessed cases where debtors were denied the opportunity to vacate a judgment due to the length of their delay and the insufficiency of their supporting documents. Therefore, acting promptly and gathering as much helpful evidence as possible to strengthen your case for vacating the default judgment is crucial.
Worth noting is that CPLR § 317 provides another potential basis to vacate your default if you:
- weren't personally served;
- you make the motion within one year after knowledge of a judgment's entry but no later than five years after such entry;
- you convince the court that you did not personally receive notice of the summons in time to defend and
- you have a meritorious defense.
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