All Terrain Properties, Inc. v. Hoy
This case concerns plaintiff All Terrain Properties' attempt to domesticate a New Jersey default judgment against defendant Robert J. Hoy in New York. Hoy had personally guaranteed corporate promissory notes, leading to the default judgment. Following a corporate bankruptcy reorganization, a provision (the "Hoy Clause") in the plan stayed enforcement of the judgment. The New York Supreme Court denied domestication and dismissed the complaint, citing invalid service. The Appellate Division reversed this decision, ruling that Hoy was judicially estopped from challenging the New Jersey court's personal jurisdiction due to his active involvement in, and benefits derived from, the bankruptcy proceedings that implicitly affirmed the judgment's validity. The court reinstated the complaint and remanded the matter for further proceedings.