| Statewide Med. Acupuncture, P.C. v Travelers Ins. Co. |
| 2006 NY Slip Op 52003(U) [13 Misc 3d 134(A)] |
| Decided on October 20, 2006 |
| Appellate Term, First Department |
| Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. |
| This opinion is uncorrected and will not be published in the printed Official Reports. |
Defendant, as limited by the briefs, appeals from so much of an order of the Civil Court, Bronx County (Julia I. Rodriguez J.), dated October 20, 2005, as denied its motion to vacate a prior order entered on default granting plaintiff's motion for summary judgment and to compel discovery.
PER CURIAM:
Order (Julia I. Rodriguez J.), dated October 20, 2005, insofar as appealed from, reversed, with $10 costs, and defendant's motion to vacate its default and to compel discovery granted.
Defendant's brief and unintended default should have been vacated in view of its showing of potentially meritorious defenses, including its defense that plaintiff is fraudulently incorporated in violation of BCL §§ 1507 and 1508 (see State Farm Mut. Auto. Ins. Co. v Mallela, 4 NY3d 313, 322 [2005]), and in view of the strong public policy for disposition of cases on the merits (see OPM Group Ltd. v Williams, 29 AD3d 354 [2006]). Defendant is entitled to discovery pertaining to its defense of fraudulent incorporation (see Continental Med. Acupuncture Servs., P.C. v Travelers Ins. Co., 2006 NY Slip Op 51890[U][2006]).
This constitutes the decision and order of the court.
I concurI concurI concur
Decision Date: October 20, 2006