On October 28, 2026, the Second Department issued a decision in Nationstar Mtge., LLC v. PLB Enters. USA, Inc., 2026 NY Slip Op. 06311, holding that a motion to vacate a default judgment failed for lack of a sufficient explanation of purported law office failure, explaining:
A plaintiff seeking to vacate a default in appearing at a conference is required to demonstrate both a reasonable excuse for its default and a potentially meritorious cause of action. The determination of what constitutes a reasonable excuse lies within the sound discretion of the trial court. Where the claim is supported by a detailed and credible explanation of the default, the court may accept law office failure as a reasonable excuse. However, conclusory and unsubstantiated allegations of law office failure are not sufficient.
Here, the plaintiff’s allegation of law office failure was unsubstantiated. Although the plaintiff submitted an attorney affirmation explaining the error that purportedly led to the default, that attorney lacked personal knowledge of the purported law office failure. In light of the plaintiff’s failure to establish a reasonable excuse for its default, it is unnecessary to determine whether it demonstrated a potentially meritorious cause of action.
(Internal citations omitted).