HERE DEFENDANT’S ANSWER WAS STRICKEN FOR DISCOVERY VIOLATIONS; AT THE INQUEST THE JUDGE SHOULD HAVE CONSIDERED ONLY DAMAGES; THE JUDGE ERRED BY CONSIDERING AN ISSUE WHICH WAS “ADMITTED” BY THE DEFENDANT BECAUSE THE ANSWER WAS STRICKEN (SECOND DEPT).

The Second Department, reversing Supreme Court, determined the court should not have considered any substantive issues in this inquest to determine damages after the answer was stricken for failure to comply with discovery orders. Because the answer was stricken, defendant admitted all the traversable allegations in the complaint, including the issue the judge erroneously considered:

“‘A defendant whose answer is stricken as a result of a default admits all traversable allegations in the complaint, including the basic allegation of liability, but does not admit the plaintiff’s conclusion as to damages'” … . “The sole issue to be determined at the inquest is the extent of the damages sustained by the plaintiff, and the court may not consider the question of whether the defendant caused the damages sustained by the plaintiff” … . At an inquest, the plaintiff bears the burden of setting forth a prima facie case as to damages … .

Here, the Supreme Court erred in considering the question of whether the plaintiff signed a satisfaction of mortgage under duress. The defendant’s answer was stricken and as a result, the defendant admitted all traversable allegations in the amended complaint, including the allegation that the satisfaction of mortgage was signed under an implied threat of physical harm. The sole issue to be determined at the inquest was the extent of damages sustained by the plaintiff (see CPLR 3215[a] …). Sabella v Keora Realty, LLC, 2026 NY Slip Op 04884, Second Dept 8-5-26

Practice Point: When an answer is stricken every traversable allegation in the complaint is admitted by the defendant and the only remaining issue is damages.​