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Manhattan Telecommunications Corp. v. H & A Locksmith, Inc.

Court of Appeals of New York

May 30, 2013

MANHATTAN TELECOMMUNICATIONS CORPORATION, Appellant,
v.
H & A LOCKSMITH, INC., et al., Defendants, and Ariq Vanunu, Respondent.

Page 201

Jonathan D. Bachrach, New York City, for appellant.

Ofeck & Heinze, LLP, New York City (Mark F. Heinze of counsel), for respondent.

Page 202

[969 N.Y.S.2d 425] OPINION

SMITH, J.

[991 N.E.2d 199] CPLR 3215(f) requires an applicant for a default judgment to file " proof of the facts constituting the claim." In Woodson v. Mendon Leasing Corp, 100 N.Y.2d 62, 71, 760 N.Y.S.2d 727, 790 N.E.2d 1156 (2003), we left open the question of whether non-compliance with this requirement is a jurisdictional defect that " renders a default judgment a ‘ nullity.’ " We now hold that the defect is not jurisdictional.

Plaintiff sued a number of corporations and an individual, Ariq Vanunu, alleging that plaintiff had provided telephone service to defendants pursuant to a written agreement, and had not been paid. The complaint alleged that Vanunu was " a principal officer in all the corporate defendant entities" ; it did not attach the agreement or allege that Vanunu had signed it in his individual capacity. All defendants defaulted, and a default judgment was entered on November 28, 2008.

On November 5, 2009, Vanunu moved to vacate the judgment, asserting that his default was excusable and that he had meritorious defenses to the action. Supreme Court denied the motion, finding that Vanunu's delay in defending himself was not excusable. The Appellate Division reversed without reaching the issue of excusable default, holding that because " plaintiff failed to provide ... evidence that [Vanunu] was personally liable for the stated claims ... the default judgment was a nullity"

Page 203

( Manhattan Telecom. Corp. v. H & A Locksmith, Inc., 82 A.D.3d 674, 674, 920 N.Y.S.2d 74 [1st Dept.2011] ). The Appellate Division granted leave to appeal, certifying the question of whether its order was properly made. We answer the question in the negative, and reverse.

We assume for present purposes that the Appellate Division was correct in holding that plaintiff's complaint, though verified, failed to supply " proof of the facts constituting the claim" against Vanunu, as CPLR 3215(f) requires. Thus the default judgment was defective, but not every defect in a default judgment requires or permits a court to set it aside. CPLR 5015(a)(1) authorizes the court that rendered a judgment to relieve a party from it " upon the ground of ... excusable default" — a ground that Supreme Court found to be absent here. The question raised by this appeal is whether the defect is jurisdictional— i.e., whether it was so fundamental that it deprived the court of power to enter the judgment, rendering the judgment a nullity whether Vanunu's default was excusable or not. This question has divided the Appellate Division departments ( see Natradeze v. Rubin, 33 A.D.3d 535, 822 N.Y.S.2d 541 [1st Dept.2006] [holding defect jurisdictional]; State of New York v. Williams, 44 A.D.3d 1149, 1151-1152, 843 N.Y.S.2d 722 [3d Dept.2007] [same]; Westcott v. Niagara-Orient Agency, 122 A.D.2d 557, 558, 505 N.Y.S.2d 19 [4th Dept.1986] [same]; but see Zaidman v. Zaidman, 90 A.D.3d 1035, 1036-1037, 935 N.Y.S.2d 147 [2d Dept.2011] [holding defect non-jurisdictional]; Araujo v. Aviles, 33 A.D.3d 830, 824 N.Y.S.2d 317 [2d Dept.2006] [same]; Freccia v. Carullo, 93 A.D.2d 281, 286-289, 462 N.Y.S.2d 38 [2d Dept.1983] [same] ).

As we explained in Lacks v. Lacks, 41 N.Y.2d 71, 74-75, 390 N.Y.S.2d 875, 359 N.E.2d 384 (1976, Breitel, Ch. J.), the word " jurisdiction" is often loosely used. But in applying the principle " that a judgment rendered without subject matter jurisdiction is void, and that the defect may be raised at any time and may not be waived" ( id. at 75, 390 N.Y.S.2d 875, 359 N.E.2d 384), it is necessary to understand the word in its strict, narrow sense. So understood, it refers to objections that are [969 N.Y.S.2d 426] [991 N.E.2d 200] " fundamental to the power of adjudication of a court" ( id. at 74, 390 N.Y.S.2d 875, 359 N.E.2d 384). " Lack of jurisdiction" should not be used to mean merely " that elements of a cause of action are absent" ( id. ), but that the matter before the court was not the kind of matter on which the court had power to rule.

The defect in the default judgment before us is not jurisdictional in this sense. A failure to submit the proof required by CPLR 3215(f) should lead a court to deny an application for a default judgment, but a court that does not comply with this ...


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