After the New York County Civil Court declined to vacate a default judgment that had been entered against Enigma Technologies, Inc., in a nonpayment proceeding, an appeal ensued.
At the Appellate Term, First Department, Enigma argued that they had vacated the premises with the landlord's knowledge and that the individual who accepted service of the nonpayment pleadings, “J. E.,” was employed by a subtenant, who was in negotiations with the landlord for a direct lease. (And Enigma claimed it was unaware of the proceeding’s pendency.)
Given the sworn disavowal of service, and the conflicting averments as whether service had been properly made upon a person of “suitable age and discretion” as permitted by state law, the AT1 reversed the lower court's decision, vacated the default judgment, and remanded the matter for a “traverse hearing” to determine the validity of the service effort.
That didn’t serve them well, at all.
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DECISION