GIT Capital, LLC v. Alexis
Attorneys and Parties
Brief Summary
Real property quiet title under RPAPL article 15 [to determine claims to real property and for declaratory relief] and vacatur of default under CPLR 5015(a) [grounds for vacating a judgment, including excusable default, new evidence, fraud, lack of jurisdiction, or related vacatur; plus inherent power to vacate in the interests of substantial justice].
Denied defendants’ motion to vacate their default and to cancel the tax deed; left in place an amended default judgment declaring plaintiff the owner of the property.
The denial of the branch of the motion seeking to vacate the default judgment was reversed (granted).
Under the unique circumstances and in the interest of justice, including an apparent deed indexing error affecting notice and equities, the court exercised discretion to vacate the default.
Background
In 1979, Peter and Glenda Alexis purchased residential property in the Village of Westbury. After Peter’s 2007 death, Glenda executed a 2008 warranty deed conveying the property to herself and her daughter, Leotta Alexis Carr. Although recorded, the deed was erroneously indexed by the Nassau County Clerk as Lot 20 instead of Lot 2, potentially obscuring record notice. Alleged unpaid 2014 Village taxes led to a 2015 tax lien sale and issuance of a tax sale certificate, followed by a 2018 tax deed conveying the property to GIT Capital, LLC. In 2019, GIT Capital commenced an RPAPL article 15 action to quiet title. No defendant appeared, and the Supreme Court entered a 2019 default judgment declaring GIT Capital the record owner, later issuing a 2021 amended judgment correcting the lot designation. Glenda and Leotta moved under CPLR 5015(a) to vacate their default and to cancel the tax deed.
Lower Court Decision
The Supreme Court, Nassau County, denied the motion by Glenda Alexis and Leotta Alexis Carr to vacate their default in appearing or answering and to cancel the tax deed, leaving in place the amended default judgment declaring GIT Capital the owner.
Appellate Division Reversal
The Appellate Division modified the order: it granted the branch of the motion under CPLR 5015(a) to vacate the default and the amended judgment in the interest of justice; it clarified that the denial of the request to cancel the tax deed was without prejudice to renew; and remitted for the defendants to serve and file an answer within 20 days of service of the decision and order with notice of entry.
Legal Significance
Reaffirms courts’ broad discretionary authority under CPLR 5015(a) to vacate default judgments in the interests of substantial justice, particularly where unique circumstances—such as a clerk’s deed indexing error—implicate notice and equity in real property disputes under RPAPL article 15.
Even after a default quiet-title judgment, defendants may obtain vacatur in the interest of justice under CPLR 5015(a) where equitable considerations and record-keeping errors affect notice; immediate cancellation of a tax deed may still require further proceedings.