On March 10, 2026, Justice d’Auguste of the New York County Commercial Division issued a decision in Levien v. Mancorp Realty Co. L.L.C., 2026 NY Slip Op. 30947(U), vacating a default judgment because the defendant did not have notice of the lawsuit, explaining:
Mancorp is entitled to relief under CPLR 317. To be entitled to relief under CPLR 317, a defendant must show that it did not personally receive notice of the existence of the lawsuit in time to defend the action, and moved to vacate its default within one year after receiving knowledge of the default judgment. In terms of knowledge, service on the Secretary of State (while proper service) does not itself confer knowledge of the existence of a lawsuit. Here, Mancorp learned of the existence of this lawsuit when its principals were served with process related to a separate lawsuit commenced in 2025.
Additionally, the Court finds that Mancorp is entitled to relief under CPLR 5015. In an application for relief under CPLR 5015, a defendant is required to demonstrate both a reasonable excuse for its default and a potentially meritorious defense to the litigation. Here, Mancorp has a reasonable excuse for its default. Plaintiff served process upon the Secretary of State, which mailed the commencement papers to an outdated address. Mancorp did not update the address on file with the Secretary of State because it was effectively defunct after the property it owned was sold. Notably, the principals of Mancorp apparently became aware of this action when they were served with process relating to an entirely different action. Furthermore, Mancorp has a potentially meritorious defense to this action. As Mancorp notes, the Commission Agreement was signed by an individual who was not a licensed real estate broker, which raises potential infirmity in the enforceability of that contract. While plaintiffs assert that Lois Levien was not the broker, her signing of the Commission Agreement is sufficient participation to create a potentially valid defense to this lawsuit. Additionally, plaintiffs have not demonstrated prejudice resulting from the instant default, and New York has a strong public policy in favor of deciding cases on their merits. Accordingly, that branch of the motion seeking to vacate the default judgment entered against Mancorp is granted.
(Internal citations omitted).