On October 28, 2026, the Second Department issued a decision in Wilmington Sav. Fund Socy., FSB v. Saunders, 2026 NY Slip Op. 06350, holding that a motion to vacate a default judgment failed for lack of a reasonable excuse for the default, explaining:
In order to vacate a default pursuant to CPLR 5015(a)(1), the moving party is required to demonstrate a reasonable excuse for the default and a potentially meritorious defense to the action. Although law office failure may constitute a reasonable excuse for a default, such an excuse must be supported by a detailed and credible explanation for the law office failure alleged to have caused the default. Mere neglect is not a reasonable excuse, and where there is a pattern of default and neglect, the attorney’s neglect can be imputed to the client.
Here, while the defendant’s former counsel was disbarred, the disbarment was automatic pursuant to Judiciary Law § 90(4)(b) due to counsel pleading guilty to two felonies, not as a result of counsel’s failure to communicate with clients or neglect of client matters. Moreover, counsel was not disbarred until 14 months after the defendant failed to timely answer the complaint. Finally, the defendant did not offer a reasonable explanation for her failure to apprise herself about the status of the action or inquire with her former counsel about the status of the action for multiple years. Accordingly, the defendant failed to demonstrate a reasonable excuse for her default, and this Court need not consider whether the defendant demonstrated a potentially meritorious defense to the action.
(Internal quotations and citations omitted).