Per Curiam
Alvarez Tax appealed from an order which granted Desfile Dominicano Inc.’s motion to vacate a default judgment against it. Galos Corp. alleged Alvarez breached a contract for rental of four floats for use in a parade. Alvarez sued Desfile claiming it gave Desfile money it owed to Galos, implying Desfile failed to convey the money to Galos. Alvarez sought indemnification from Desfile for any recovery Galos obtained from Alvarez. A $20,000 judgment was entered against Alvarez, and a default judgment against Desfile for its failure to appear or answer. Desfile later moved to vacate the default, which was granted. The panel noted mere denial of receipt of a summons and complaint was insufficient to establish lack of actual notice under CPLR 317. While Desfile was served by substituted service on the Secretary of State, as it failed to meet even the first prong for entitlement to relief under §317 by showing it did not have actual notice of the action against it in time to answer, it was not entitled to relief from judgment under §317. Desfile’s president’s conclusory affidavit stating Desfile did not owe Alvarez money was insufficient to establish a potentially meritorious defense, and the order granting Desfile vacatur was reversed.
