New Economy Project
New Economy Project is at the forefront of financial justice advocacy in New York City. Founded in 1995, New Economy Project seeks to build a new economy that works for all, rooted in racial and social justice, cooperation, neighborhood equity, and ecological sustainability. New Economy Project undertakes systemic, social justice litigation and is known for effectively combining direct legal services with cutting-edge legal and policy advocacy, coalition-building, and applied research. New Economy Project challenges structural inequities that perpetuate poverty and racial wealth inequality and advocate for policies and practice changes that eliminate economic discrimination and other inequities that harm low-income New Yorkers and New York City neighborhoods.
THE CASE
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Esgro Capital Management, LLC v. Sharae Banks. In 2016, Sharae Banks, a single mother, learned that a debt buyer company had secured a default judgment against her—though she never even knew she had been sued. Ms. Banks sought information from the debt buyer’s attorneys, who offered her only an unaffordable payment plan. The debt buyer then began garnishing her wages in 2017, forcing her to work overtime to try to make up for the garnished wages. Only in 2020 did Ms. Banks learn that she could move to vacate the default judgment. Despite her proof that she was never served with a default judgment, the court denied her motion, finding that courts should not grant such “discretionary” relief where the individual “demonstrated a lack of good faith” or was “dilatory” in asserting her rights.
New Economy Project is appealing this state court decision, with co-counsel at The Legal Aid Society of New York City. New Economy Project seeks to reverse a disturbing line of cases granting New York State courts unwarranted discretion to refuse to vacate default judgments entered without personal jurisdiction and equating a sustained period of involuntary payments with waiver of one’s personal jurisdiction defense.
