LG 2 Doe v. Jasinski, 195 A.D.3d 1399

Background

Plaintiff (LG 2 Doe) sued under the Child Victims Act for sexual abuse allegedly committed by defendant Gerald Jasinski in the late 1970s while he served as a priest.
Plaintiff asserted intentional sexual-offense claims against Jasinski and negligent/supervisory claims against Jasinski's parish (Blessed Mother Teresa of Calcutta Parish) and the Diocese of Buffalo (the Church defendants).
Jasinski was personally served but failed to answer; plaintiff moved under CPLR 3215 for a default judgment and damages; the Church defendants answered and remained in the case.
Supreme Court found Jasinski in default but, exercising CPLR 3215(d) discretion, stayed entry of judgment and deferred damages determination until resolution of claims against the non-defaulting Church defendants to avoid alleged prejudice to them.
Plaintiff appealed that partial stay; after the order the Diocese filed Chapter 11, but the Appellate Division took judicial notice and held the bankruptcy did not automatically stay this appeal as to the non‑debtor defendant.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether CPLR 3215(d) permits a court to defer damages against a defaulting defendant when other non-defaulting defendants remain	CPLR 3215(d) discretion may not be used to defer damages absent an application by the plaintiff	Court may defer damages to avoid prejudice to non-defaulting co-defendants and for judicial economy	Court has discretion under CPLR 3215(d) to defer damages, but here the court abused its discretion in staying damages against Jasinski
Whether the trial court properly stayed entry of judgment against the defaulting defendant pending resolution of co-defendants' claims	Further delay is prejudicial to plaintiff and undermines the Child Victims Act's purposes; plaintiff seeks prompt damages determination	Staying damages protects non-defaulting defendants from prejudice and promotes single damages proceeding/judicial economy	Staying damages was an improvident exercise: prejudice to plaintiff (delay, lost recovery risk, evidentiary harms) outweighed any limited prejudice to Church defendants; default damages determination must proceed
Whether the Diocese’s subsequent bankruptcy automatically stayed this appeal or the damages determination against the non-debtor defaulting defendant	Bankruptcy of a co-defendant does not bar plaintiff’s appeal or automatic stay for non-debtors; plaintiff may seek relief from the bankruptcy court if needed	Bankruptcy stay could affect related proceedings and justify delay	Automatic stay under 11 U.S.C. § 362(a) does not apply to non-debtor defendant here; no record reason to extend stay to non-debtor; appeal proceeds (subject to any bankruptcy-court relief available to plaintiff)

Key Cases Cited

Central Buffalo Project Corp. v. Edison Bros. Stores, 205 AD2d 295 (discusses that Bankruptcy Code automatic stay generally does not apply to non-debtors)
Queenie, Ltd. v. Nygard Int'l, 321 F.3d 282 (explains limited circumstances where bankruptcy stay may reach non-debtors)
Murnane Assoc. v. Harrison Garage Parking Corp., 217 AD2d 1003 (extends stay to non-debtors only where indemnity or immediate adverse economic effect on estate exists)
A.H. Robins Co. v. Piccinin, 788 F.2d 994 (Fourth Circuit decision on non-debtor stay extension in mass tort context)
Nostrom v. A.W. Chesterton Co., 15 NY3d 502 (principles on statutory interpretation and examining legislative history)
Brady v. Ottaway Newspapers, 63 NY2d 1031 (standards for substituting appellate discretion even absent abuse)
Taylor v. Pescatore, 102 AD2d 867 (default damages determination in separate proceeding does not preclude co-defendants from litigating their claims)
Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Oxford Venture Partners, LLC, 13 AD3d 89 (refusal to extend automatic stay to non-debtors absent special circumstances)
Marcinak v. General Motors Corp., 285 AD2d 387 (judicial notice of bankruptcy filings in related proceedings)