On March 20, 2025, Justice Patel of the New York County Commercial Division issued a decision in Sapient Corp. v. Taggart Continuum Tech. Solutions, Inc., 2025 NY Slip Op. 30967(U), awarding declaratory judgment on default, explaining:
Plaintiff further seeks a declaratory judgment under CPLR § 3001, and an award of attorneys’ fees and costs under Section 22.3 of the Agreement, which provides that the breaching party shall be fully responsible for all costs of the enforcement of this Agreement or the collection or pursuit of any remedies, including attorneys’ fees and expenses incurred by the enforcing party.
The court may render a declaratory judgment having the effect of a final judgment as to the rights and other legal relations of the parties to a justiciable controversy. Declaratory judgment will rarely, if ever, be granted solely on default. The right to a declaratory judgment hinges not on one party’s default, but on the facts of the case. The use of a declaratory judgment, while discretionary with the court, is nevertheless dependent upon facts and circumstances rendering it useful and necessary. The facts of the case are what establish a right to a declaration against a defendant in default.
Here, Plaintiff has established that a justiciable controversy exists between the parties as to their obligations under the Agreement. Specifically, Plaintiff has submitted evidence in the form of inaccurate and untimely invoices, as well as the Walsh Affidavit, which avers that Defendant failed to comply with the invoice and overtime procedures under the Agreement. Further, the Agreement itself provides that Defendant is not entitled to payment where it fails to abide by such procedures. Accordingly, Plaintiff has demonstrated that it properly withheld payments for defective invoices it received from Defendant as per the clear terms of the Agreement.
(Internal quotations and citations omitted).