NYCTL 1998-2 Trust v Phillip

Holding The court affirmed the denial of the defendants’ motion to vacate prior orders, holding that the decedent’s death did not divest the court of jurisdiction because a default judgment had already been entered. Additionally, the court ruled that CPLR 317 is inapplicable to tax lien foreclosure actions and that the defendants failed to establish a basis for vacating the default under CPLR 2004 or 3012(d).

The court’s words

Generally, the death of a party divests a court of jurisdiction to act, and automatically stays proceedings in the action pending the substitution of a personal representative for the decedent

2026 NY Slip Op 05802, at the official text

If 'a party's death does not affect the merits of a case,' such as where a default judgment is entered against a borrower [in an action to foreclose a mortgage] 'there is no need for strict adherence to the requirement that the proceedings be stayed pending substitution'

2026 NY Slip Op 05802, at the official text

New York City Administrative Code § 11-340 provides that so much of CPLR 317 'as requires the court to allow a defendant to defend an action after final judgment shall not apply to an action to foreclose a tax lien'

2026 NY Slip Op 05802, at the official text