Appellate Division, First Department · October 8, 2026 · 2026 NY Slip Op 05855
Kapitus Servicing, Inc. v Southern Source, Inc.
Read the official decision: 2026 NY Slip Op 05855
Holding The Appellate Division affirmed the denial of the motion to vacate a default judgment, finding that defendants had actual notice of the action despite potential notary defects. Additionally, the court held that defendants failed to establish a usury defense because they did not prove the underlying agreement was a loan with a finite term.
The court’s words
defendants clearly had actual notice of the action
2026 NY Slip Op 05855, at the official text
defendants failed to establish that the underlying agreement was a loan
2026 NY Slip Op 05855, at the official text
defendants failed to prove their usury defense by clear evidence as to all its elements
2026 NY Slip Op 05855, at the official text
| Court | Appellate Division, First Department |
|---|---|
| Decided | October 8, 2026 |
| Citation | 2026 NY Slip Op 05855 |
| Area of law | Contracts and Commercial · Civil Procedure |
| Week | Week ending October 10, 2026 |
| Official text | Official decision: 2026 NY Slip Op 05855 |
| Publication status | Slip opinions are uncorrected and subject to revision before publication in the Official Reports. |
| Source feed | New York slip opinion page |
| Law Watch record id | 1071 |
Recommended citation
ESQ HQ, New York Law Watch, Kapitus Servicing, Inc. v Southern Source, Inc., 2026 NY Slip Op 05855 (Appellate Division, First Department, October 8, 2026), https://esqhq.com/decisions/2026-ny-slip-op-05855/
How this record was made
Holding drafted by Law Watch’s in-house model, graded by three reviewers; every quotation verified word for word against the official text.
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