From Casetext: Smarter Legal Research

Capitol Distrib. v. Ch. Ave. Wine Liquor

Appellate Division of the Supreme Court of New York, Second Department
May 23, 1994
204 A.D.2d 588 (N.Y. App. Div. 1994)

Opinion

May 23, 1994

Appeal from the Supreme Court, Kings County (Held, J.).


Ordered that the appeal from the order dated April 15, 1992, is dismissed; and it is further,

Ordered that the judgment is affirmed; and it is further,

Ordered that the order dated August 25, 1992, is affirmed, insofar as appealed from; and it is further,

Ordered that the respondent is awarded one bill of costs.

The appeal from the intermediate order must be dismissed because the right of direct appeal therefrom terminated with the entry of judgment in the action (see, Matter of Aho, 39 N.Y.2d 241, 248). The issues raised on appeal from the order dated April 15, 1992, are brought up for review and have been considered on the appeal from the judgment (CPLR 5501 [a] [1]).

The uncontroverted facts are that the plaintiff, a wholesale liquor distributor, sold and delivered $356,099.05 worth of wine and liquor to Church Avenue Wine Liquor, Inc. (hereinafter Church), a liquor retailer, however, payment was never rendered. In 1989, Mul-Rob Liquors, Inc., d/b/a Top Shelf (hereinafter Mul-Rob), purchased substantially all of Church's assets and began operating the retail wine and liquor business.

The plaintiff commenced this action against Church and Mul-Rob, for goods sold and delivered, alleging, inter alia, noncompliance with the notice to creditors provisions of UCC 6-105. Thereafter, the Supreme Court granted the plaintiff's motion for summary judgment against Mul-Rob upon its default in failing to oppose the motion. Mul-Rob's subsequent motion to vacate its default was denied because Mul-Rob failed to include an affidavit of merit in its motion papers. Thereafter, the Supreme Court denied Mul-Rob's motion to renew its motion to vacate its default.

To vacate a default, the movant must establish that the default was excusable and that there is a good and meritorious defense to the action (see, Gepp v. International Harvester Co., 186 A.D.2d 418). The transfer from Church to Mul-Rob, constituted a "bulk transfer" pursuant to UCC 6-102, entitling plaintiff, as a creditor of Church, to written notice prior to the transfer (see, UCC 6-105). A bulk transfer is ineffective against any creditor of the transferor unless the transferee requires the transferor to furnish a list of existing creditors (see, UCC 6-104). Here, it is uncontroverted that Mul-Rob failed to obtain a list of Church's existing creditors prior to the bulk transfer. Accordingly, Mul-Rob failed to sustain its burden to prove that it has a good and meritorious defense (see, Shields v. Stevens, 55 A.D.2d 1017).

In its motion to renew, Mul-Rob failed to set forth any additional facts which existed at the time it moved to vacate its default, but were not then known (see, Foley v. Roche, 68 A.D.2d 558). Accordingly, the Supreme Court properly denied the motion to renew.

We have reviewed the defendant's remaining contentions and find them to be without merit. Ritter, J.P., Copertino, Santucci and Hart, JJ., concur.


Summaries of

Capitol Distrib. v. Ch. Ave. Wine Liquor

Appellate Division of the Supreme Court of New York, Second Department
May 23, 1994
204 A.D.2d 588 (N.Y. App. Div. 1994)
Case details for

Capitol Distrib. v. Ch. Ave. Wine Liquor

Case Details

Full title:CAPITOL DISTRIBUTORS CORP., Respondent, v. CHURCH AVENUE WINE LIQUOR…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: May 23, 1994

Citations

204 A.D.2d 588 (N.Y. App. Div. 1994)
612 N.Y.S.2d 618

Citing Cases

Northern Cross Service Station, Inc. v. Arif

However, contrary to Lai's contentions, the record shows that there was a "bulk transfer" within the meaning…

McFarlane v. N.Y. City Tran. Authority

The plaintiff allegedly tripped and fell on a defective portion of the roadway within a bus stop in Brooklyn.…