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Cannot Use Judgment in Lieu of Complaint When Note Is Part of a Larger Transaction: Delmastro v Rescue Carting Corp. and Diesso

Posted in CPLR 3213, Industry: construction, Judgment in Lieu of Complaint, Justice Pines, Emily, Suffolk

In a March 22, 2011 decision by Justice Pines the Court denied a motion under CPLR 3213 for summary judgment in lieu of complaint and allowed the defendant to submit an answer. The plaintiff moved for judgment based on a note and guaranty which were provided as part of a sale of a business. The loans payments ceased and the plaintiff brought suit.

The court denied plaintiff’s motion because the note was not created in a vacuum, and once considered with the other deal documents, did not qualify as an instrument for the payment of money only under CPLR 3213.

Delmastro v Rescue Carting Corp. and Diesso, Sup Ct, Suffolk County, March 22, 2011, Pines, J, Index No. 41653-2010