Sherpa v SRF Partnership, L.P.

Holding The court affirmed the lower court’s order vacating a default judgment under CPLR 317 because the defendant demonstrated it did not receive actual notice of the action due to an incorrect address on file with the Secretary of State. The defendant also established a potentially meritorious defense by showing the property was leased to another entity at the time of the incident.

The court’s words

To vacate a default in answering or appearing pursuant to CPLR 317, a defendant must demonstrate that it was served with a summons other than by personal delivery

2026 NY Slip Op 06340, at the official text

Service upon a corporation through delivery of the summons and complaint to the Secretary of State is not personal delivery to the corporation

2026 NY Slip Op 06340, at the official text

the defendant established its entitlement to relief from its default under CPLR 317 by demonstrating that the address on file with the Secretary of State at the time that the summons and complaint were served was incorrect

2026 NY Slip Op 06340, at the official text

the defendant demonstrated the existence of a potentially meritorious defense insofar as the subject property was leased to another entity at the time of the incident

2026 NY Slip Op 06340, at the official text