Legal Question in Business Law in New York

My spouse went into business with a previous colleague. They had no legal contract and each put up the same amount of $ to start up the business.After about 3 years business wasn't doing well and they dissolved the company. They received a lawsuit for breach of contract. They art by they used for their company responded that she was representing the company,my spouse and partner. A few months later my husband asks how things are going and his partner said the attorney is handling it. Next thing we know his partner settled out without his knowledge and now my husband has a default judgment against him. He was never notified that their attorney was off the case or anything. What advice can you offer?


Asked on 5/19/16, 4:17 pm

1 Answer from Attorneys
Jeffrey Shepro Jeffrey Shepro PC: NY Commercial Real Estate and Business Law

I'm sorry to hear about this situation. Generally speaking, your husband should most likely file an Order to Show Cause to vacate the default judgment so he can have an opportunity to defend himself. He must show that he has a reasonable cause for the default and a meritorious defense. I have successfully filed many Orders to Show Cause. Generally the Order to Show Cause should be filed as soon as possible as you may be barred from filing it after one year of learning about the default. (This is not legal advice as I would need to know more facts and review the case in order to provide legal advice.) If you would like to discuss possible representation, please call me at 212-575-2683. Best, Jeffrey Shepro

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Answered on 5/23/16, 5:29 pm


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