In Fleet Business Credit v. Costelloe , Fleet Business Credit sought to enforce a Michigan judgment entered against Costelloe, Inc., on default.
Costelloe alleged the Michigan court lacked in personam and subject matter jurisdiction. When motion practice ensued, the Civil Court dismissed the personal jurisdiction defense, but refused to strike the latter defense.
The Appellate Term, Second Department, held Fleet's motion to dismiss Costelloe's second affirmative defense was properly denied, as was the lendor's request for judgment. In the AT2's view, an "issue of fact" had been raised as to whether the lease agreement gave Michigan jurisdiction over the dispute. (Costelloe claimed the document hadn't been signed by a person with authority.)
To download a copy of the Appellate Term's decision, please use this link: Fleet Business Credit v. Costelloe