Opinion
December 17, 1998
Appeal from the Supreme Court, New York County (Beverly Cohen, J.).
Vacatur of the order entered upon appellants' default was properly denied in light of appellants' failure to demonstrate a meritorious defense. Although appellants now contend that they hold valid rent stabilized leases to the apartments at issue, the Bankruptcy Court has previously held that the subject leases are void as fraudulent transfers, and since appellants failed to establish that they were not afforded a full and fair opportunity to litigate the validity of their leases within the bankruptcy proceeding, they are collaterally estopped from relitigating the issue as a defense to the present action ( see, Kaufman v. Eli Lilly Co., 65 N.Y.2d 449, 456). We have considered appellants' remaining claims and find that they are unavailing.
Concur — Sullivan, J. P., Nardelli, Williams and Mazzarelli, JJ.