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Poughkeepsie Savings Bank v. Tyson

Appellate Division of the Supreme Court of New York, Third Department
Feb 14, 1991
170 A.D.2d 818 (N.Y. App. Div. 1991)

Opinion

February 14, 1991

Appeal from the Supreme Court, Orange County (Peter Patsolos, J.).


Plaintiff commenced this action seeking to recover moneys owed it pursuant to a written promissory note for the purchase of a new automobile by defendant Quentin D. Tyson. The names of Tyson and defendant Betty J. Fairley (hereinafter defendant), a relative of Tyson, were listed on the note as cosigners. When both defendants failed to make payment pursuant to the contract, the loan was declared in default. After defendant was served with the complaint, she called plaintiff's offices and told an employee that she had never cosigned for the car. She therefore claimed that her signature on the papers must have been forged by Tyson. Plaintiff's representative assured her that the matter would be looked into and defendant took no further action with respect to the complaint. Defendant also claims that she spoke to Tyson at that time and he assured her that everything would be taken care of. Thereafter, plaintiff entered a default judgment against defendant. Defendant then promptly hired an attorney who moved to open the default judgment. Supreme Court denied this motion and this appeal followed.

It is undisputed that Tyson was never served with a summons and complaint because he had previously given plaintiff an affidavit of confession and stipulation for repayment. When Tyson again defaulted, plaintiff filed the affidavit and confession of judgment in the County Clerk's office.

We reverse. In order to vacate a default judgment, the moving party is generally required to demonstrate a valid excuse for the default, absence of willfulness and a meritorious defense to the underlying action (see, Maiello v Chrysler Corp., 150 A.D.2d 849, appeal dismissed 74 N.Y.2d 945). Although Supreme Court found defendant's representations with respect to this standard deficient, it is our view that there is a sufficient basis to warrant vacating the default, both under CPLR 5015 (a) (1) and pursuant to this court's inherent authority to do so in the interest of justice (see, Rockefeller v Jeckel, 161 A.D.2d 1090).

Regarding defendant's excuse for the delay, we note that she averred that she did not think she needed to retain an attorney because plaintiff's employee had indicated that the matter would be investigated. Although Supreme Court found this excuse insufficient, we do not find defendant's explanation unreasonable given the average layperson's unfamiliarity with the workings of a lawsuit. As to the underlying merit of defendant's defense of forgery, while it is true that defendant did not submit an affidavit from a handwriting expert, the handwriting samples that defendant did submit differ enough from the allegedly forged signature to raise some doubt as to the authenticity, even to an untrained eye. Given that the law favors resolution of controversies on the merits (see, Rockefeller v Jeckel, supra) and the fact that defendant's delay in moving to vacate the default was not a lengthy one, we find that defendant's motion should have been granted.

Order reversed, on the law and the facts, without costs, motion granted and default judgment entered against defendant Betty J. Fairley vacated. Mahoney, P.J., Casey, Levine, Mercure and Harvey, JJ., concur.


Summaries of

Poughkeepsie Savings Bank v. Tyson

Appellate Division of the Supreme Court of New York, Third Department
Feb 14, 1991
170 A.D.2d 818 (N.Y. App. Div. 1991)
Case details for

Poughkeepsie Savings Bank v. Tyson

Case Details

Full title:POUGHKEEPSIE SAVINGS BANK, FSB, Respondent, v. QUENTIN D. TYSON…

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

Date published: Feb 14, 1991

Citations

170 A.D.2d 818 (N.Y. App. Div. 1991)
565 N.Y.S.2d 627

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