Hybrid Capital Group, LLC v. Padell

Background

Hybrid Capital Group, LLC and VSG International, LLC asked the court to enter default judgment against the Public Administrator of New York County. The opinion states that the plaintiffs served the Public Administrator with the summons and complaint and with an order to show cause explaining why default judgment should not be entered. The service was made at 31 Chamber Street, Suite 311, New York, New York.

Court’s Analysis

The court required the plaintiffs to provide supplemental briefing addressing two issues. First, they had to explain why service on the Public Administrator was proper. Second, they had to explain how the court could enter default judgment against the Public Administrator in light of New York City Charter § 396. That provision states that actions seeking penalties for violations of law generally must be brought in the name of New York City rather than one of its agencies, unless another law provides otherwise.

The court cited decisions explaining that New York City departments, as distinct from the City itself, may lack the legal capacity to be sued. The order did not decide whether the Public Administrator was properly served, whether it could be sued in this action, or whether default judgment should be entered.

Disposition

Judge Katherine Polk Failla ordered the plaintiffs to submit supplemental briefing by July 10, 2020. The order did not grant or deny the request for default judgment.