Varela v. Investors Insurance Holding Corp.

OPINION OF THE COURT

Memorandum.

The order of the Appellate Division should be affirmed, with costs.

Defendant law firm represented defendant Investors, an insurance company. The company erroneously believed that plaintiffs were delinquent in paying their insurance premiums and consequently, the law firm commenced a collection action and entered a default judgment against plaintiffs for the sum believed due. Although thereafter informed by their client that a mistake had been made and that plaintiffs did not owe Investors the premium, defendant refused to enter a satisfaction of judgment until…