On March 27, 2025, the First Department issued a decision in Matter of Grayco Alternative Partners II, LP v. 5 Stone Green Capital, LLC, 2025 NY Slip Op. 01868, holding that a trial court erred in entering judgment while an action was stayed as a result of the death of counsel, explaining:
The judgment should have been vacated because the proceedings were automatically stayed in December 2021 when appellants’ counsel of record died during the pendency of the action, and the stay was not lifted before entry of the August 17, 2023 judgment. Under CPLR 321, an automatic stay of the proceedings will remain in effect until 30 days after notice to appoint another attorney is served on the affected party, or until the court grants leave to resume proceedings. While a 321(c) stay is in effect, no proceedings against the party will have any adverse effect. Here, however, there was no compliance with either the leave or notice requirements of CPLR 321[c], and appellants did not retain new counsel until September 2023, well after the August 17, 2023 judgment and the June 26, 2023 order were entered.
(Internal quotations and citations omitted).