On July 17, 2025, Justice Cohen of the New York County Commercial Division issued a decision in JG Group Holdings LLC v. Kahlon, 2025 NY Slip Op. 33022(U), refusing to vacate a default judgment because of the movant’s failure adequately to show that it had potentially meritorious claims, explaining:
Under CPLR 5015(a)(1), the rendering court may vacate a judgment or order on the grounds of excusable default. Vacatur pursuant to CPLR 5015(a)(1) requires the movant to demonstrate (1) a reasonable excuse for the default; and (2) a meritorious defense to the action. Defendant has failed to meet the second prong of that standard here.
The court has discretion to accept law office failure as a reasonable excuse where the claim is supported by a detailed and credible explanation of the default, but conclusory and unsubstantiated allegations of law office failure are not sufficient. Mere neglect is not a reasonable excuse. Defendant has offered an affidavit from its counsel’s paralegal providing evidence of the calendaring error and how it caused Defendant’s counsel to fail to timely oppose the motion to dismiss. Although not particularly compelling, Defendant provides evidence that at least arguably provides a reasonable excuse for failing to timely oppose the motion to dismiss.
However, Defendant has failed to set forth facts indicating that the dismissed counterclaims are meritorious. Instead, Defendant’s counsel merely asserts that if given leave to oppose, Defendant will demonstrate the sufficiency and viability of these claims insufficient to warrant vacatur of a Court order. Accordingly, Defendant’s motion to vacate is denied.
(Internal quotations and citations omitted).