Allstate Ins. Co. v. N. Shore Univ. Hosp.

Decision Date18 July 2018
Docket Number2016–12913,Index No. 600593/15
Citation82 N.Y.S.3d 61,163 A.D.3d 745
Parties ALLSTATE INSURANCE COMPANY, Respondent, v. NORTH SHORE UNIVERSITY HOSPITAL, etc., Appellant.
CourtNew York Supreme Court — Appellate Division

Russell Friedman, Lake Success, N.Y. (Dara C. Goodman of counsel), for appellant.

Peter C. Merani, P.C., New York, N.Y. (Eric M. Wahrburg of counsel), for respondent.

CHERYL E. CHAMBERS, J.P., LEONARD B. AUSTIN, ROBERT J. MILLER, JOSEPH J. MALTESE, JJ.

DECISION & ORDER

In an action pursuant to Insurance Law § 5106(c) for a de novo determination of claims for no-fault insurance benefits, the defendant appeals from an order of the Supreme Court, Nassau County (James P. McCormack, J.), entered October 19, 2016. The order denied the defendant's motion pursuant to CPLR 5015(a)(1) to vacate its default in answering the complaint and pursuant to CPLR 2004 and 3012(d) to extend its time to answer the complaint.

ORDERED that the order is reversed, on the facts and in the exercise of discretion, with costs, and the defendant's motion pursuant to CPLR 5015(a)(1) to vacate its default in answering the complaint and pursuant to CPLR 2004 and 3012(d) to extend its time to answer the complaint is granted.

This action pursuant to Insurance Law § 5106(c) for a de novo determination of claims for no-fault insurance benefits arises from a motor vehicle accident that occurred on July 28, 2013. Jude M. Blanc allegedly was injured in the accident, and he underwent hip surgery at the defendant hospital. The defendant submitted a claim to the plaintiff insurer for no-fault benefits for the surgery and related care. The plaintiff denied the claim.

The defendant submitted the matter to arbitration. The arbitrator determined that the defendant was entitled to no-fault compensation in the amount of $16,134.83, plus interest and attorney's fees. The plaintiff appealed the award to a master arbitrator, who affirmed the award.

On January 29, 2015, the plaintiff commenced this action pursuant to Insurance Law § 5106(c) for a de novo determination of the defendant's claims for recovery of no-fault benefits. The plaintiff then moved for leave to enter a default judgment because the defendant failed to timely appear or answer the complaint. In an order entered April 21, 2015, the Supreme Court granted the plaintiff's motion for leave to enter a default judgment. On June 8, 2015, the court entered a default judgment.

In July 2016, the defendant moved pursuant to CPLR 5015(a)(1) to vacate its default, and pursuant to CPLR 2004 and 3012(d) to extend its time to answer the complaint. In an order entered October 19, 2016, the Supreme Court denied the motion, and the defendant appeals.

The defendant's motion was timely made (see CPLR 5015[a][1] ; 2103[b][2] ). A defendant seeking to vacate a default pursuant to CPLR 5015(a)(1) on the ground of excusable default must demonstrate a reasonable excuse for the default and a potentially meritorious defense to the action (see CPLR 5015[a][1] ; Eugene Di Lorenzo, Inc. v. A.C. Dutton Lbr. Co., 67 N.Y.2d 138, 141, 501 N.Y.S.2d 8, 492 N.E.2d 116 ; EMC Mtge. Corp. v. Toussaint, 136 A.D.3d 861, 862, 25 N.Y.S.3d 312 ; Lane v. Smith, 84 A.D.3d 746, 748, 922 N.Y.S.2d 214 ). Here, the defendant demonstrated a reasonable excuse for its default and a potentially meritorious defense to the action (see CPLR 5015[a][1] ; Matter of Williams v. Williams, 148 A.D.3d 917, 918, 49 N.Y.S.3d 535 ; Matter of Gasby v. New York City Hous. Auth./Walt Whitman Houses, 142 A.D.3d 1018, 1019, 37 N.Y.S.3d 567 ; Youth v. Grant, 126 A.D.3d 893, 893, 2 N.Y.S.3d 906 ). Furthermore, the plaintiff did not assert before the Supreme Court that the defendant's delay in answering resulted in prejudice, the record does not reflect that the...

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4 cases
  • Nationwide Gen. Ins. Co. v. Campos
    • United States
    • New York Supreme Court
    • June 22, 2021
    ...defense (Glanz v Parkway Kosher Caterers, 176 A.D.3d 686, 110 N.Y.S.3d 129 [2d Dept 2019]; Allstate Ins. Co. v North Shore Univ. Hosp., 163 A.D.3d 745, 82N.Y.S.3d61 [2d Dept 2018]; Yuxi Li v Caruso, 161 A.D.3d 1132, 77 N.Y.S.3d 685 [2d Dept 2018]; HSBC Bank USA, N.A. v Powell, 148 A.D.3d 11......
  • Boukas v. Boukas, 2016-03836
    • United States
    • New York Supreme Court — Appellate Division
    • July 18, 2018
  • Global Liberty Ins. Co. v. Shahid Mian, M.D., P.C.
    • United States
    • New York Supreme Court — Appellate Division
    • May 29, 2019
    ...excuse for the default and a potentially meritorious defense to the action (see CPLR 5015[a][1] ; Allstate Ins. Co. v. North Shore Univ. Hosp., 163 A.D.3d 745, 746, 82 N.Y.S.3d 61 ). Here, the defendant demonstrated a reasonable excuse for its default (see Allstate Ins. Co. v. North Shore U......
  • Parisien v. Allstate Ins. Co.
    • United States
    • New York Supreme Court — Appellate Term
    • August 12, 2022
    ...Corp. v. New York City Dept. of Envtl. Protection , 200 A.D.3d 875, 878, 161 N.Y.S.3d 108 [2021] ; Allstate Ins. Co. v. North Shore Univ. Hosp. , 163 A.D.3d 745, 746, 82 N.Y.S.3d 61 [2018] ), and the public policy favoring the resolution of cases on the merits (see Allstate Ins. Co. v. Nort......

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