C3 DATA LLC LLC v. 212 MEDIA GROUP INC (2025)

Order, Supreme Court, New York County (Lyle Frank, J.), entered on or about August 7, 2024, which denied the motion of defendants 212 Media Group Inc., 212 Media GRP Inc., and 212 Media Marketing Inc. to vacate the default judgments against them, unanimously affirmed, without costs.

Supreme Court providently exercised its discretion in denying defendants’ motion in accordance with CPLR 317 (see Eugene Di Lorenzo, Inc. v. A.C. Dutton Lbr. Co., 67 N.Y.2d 138, 141–142, 501 N.Y.S.2d 8, 492 N.E.2d 116 [1986];  Lawrence v. Esplanade Gardens, Inc., 213 A.D.2d 216, 216, 623 N.Y.S.2d 586 [1st Dept. 1995]).  Defendants failed to update their registered forwarding and office addresses with the Secretary of State, even after they were named as defendants and failed to appear in another action in which they were served in accordance with Business Corporation Law § 306, as they were in this action.  These facts give rise to an inference that defendants were deliberately attempting to avoid notice of this action.

Moreover, defendants did not demonstrate a meritorious defense to the action in relying on a general release provision in a confidential agreement that settled claims in a California action.  That provision released only claims between defendants and plaintiff, who collectively were the defendants in that action, and the claimants in the California action.  The release did not apply to claims between plaintiff and defendants themselves.

Any failure by plaintiff to comply with the additional service requirements under CPLR 3215(g)(4)(i) and (ii) does not compel vacatur of the default judgments, as defendants failed to provide grounds for vacatur (see Gourvitch v. 92nd & 3rd Rest Corp., 146 A.D.3d 431, 431, 44 N.Y.S.3d 403 [1st Dept. 2017];  Lopez v. Trucking & Stratford, Inc., 299 A.D.2d 187, 187, 749 N.Y.S.2d 524 [1st Dept. 2002]).

We have considered defendants’ remaining contentions and find them unavailing.