N.Y. Comp. Codes R. & Regs. tit. 22 § 212.41-a

Current through Register Vol. 46, No. 45, November 2, 2024

Section 212.41-a - Commercial claims procedure

(a) A commercial claims action may be brought by a claimant that is:

(1) a corporation, including a municipal or public benefit corporation, partnership, or association, which has its principal office in the State of New York, or

(2) an assignee of any commercial claim, subject to the restrictions set forth in UDCA 1809-A. The action shall be instituted by the claimant or someone on its behalf by paying the filing fee and the cost of sending the notice of claim as provided in UDCA 1803-A and by filing and signing a written application containing the following information:

(i) claimant's name and principal office address;

(ii) defendant's name and place of residence or place of business or employment;

(iii) the nature and amount of the claim, including dates and other relevant information; where the claim arises out of a consumer transaction (one where the money, property or service which is the subject of the transaction is primarily for personal, family or household purposes), information showing that the transaction is a consumer transaction;

(iv) a certification that not more than five claims have been instituted in the courts of this State in the calendar month; and

(v) in the case of a commercial claim arising out of a consumer transaction, a certification that the claimant has mailed a demand letter, containing the information set forth in UDCA section 1803-A, no less than 10 days and no more than 180 days prior to the commencement of the claim.

(b) Unless the clerk shall require the claimant, pursuant to UDCA 1810-A to apply to the court for leave to prosecute the claim in a commercial claims part, the clerk shall reduce to a concise written form and record in a special docket the information contained in the application, and shall give to the person who signed the statement a memorandum of the time and place set for the hearing, which shall be as soon as practicable and shall advise such person to produce at the hearing supporting witnesses, account books, receipts or other documents required to establish the claim. The clerk shall advise the claimant of the right of the claimant or the defendant to request an evening hearing, which shall not be so scheduled if it would cause unreasonable hardship to either party, and the clerk shall schedule the hearing so as to minimize the defendant's time away from employment. In the case of a commercial claim arising out of a consumer transaction, the clerk shall mark the claim conspicuously as a consumer transaction and shall record it in the docket marked as a consumer transaction.

(c) Within five days after the action is filed, the clerk shall send to the defendant by ordinary first class mail and by certified mail, return receipt requested, at one or more of the addresses required by UDCA § 1803-A, as shall be deemed necessary, a signed notice bearing the seal of the court, which shall be in substantially the following form:

DISTRICT COURT OF ___

COUNTY OF ___

COMMERCIAL CLAIMS PART

TO: ______

Take Notice that __asks judgment in this Court against you for $__ together with costs, upon the following claim:

There will be a hearing before the Court upon this claim on __, 19_, at _ o' clock _M, in the Commercial Claims Part, held at _______

You must appear and present your defense and any counterclaim you may desire to assert at the hearing at the time and place above set forth. (You may request that the hearing be scheduled during evening hours if you do so within 14 days of receipt of this notice.) IF YOU DO NOT APPEAR, JUDGMENT WILL BE ENTERED AGAINST YOU BY DEFAULT EVEN THOUGH YOU MAY HAVE A VALID DEFENSE. If your defense or counterclaim, if any, is supported by witnesses, account books, receipts or other documents, you must produce them at the hearing. The Clerk, if requested, will issue subpoenas for witnesses, without fee thereof.

If you wish to present a counterclaim against the claimant, you must do so by filing with the Clerk of the Court a statement containing such counterclaim within five days of receiving this notice of claim. At the time of such filing you must pay the Clerk a filing fee of $3.00 plus the cost of postage to send your counterclaim by first class mail to the claimant. If you fail to file a counterclaim within this five- day period, you retain the right to file the counterclaim until the time of the hearing, but the claimant may request and obtain an adjournment of the hearing to a later date.

If you admit the claim, but desire time to pay, you must appear personally on the day set for the hearing and state to the Court your reasons for desiring time to pay.

Read the attached sheet for more information.

Dated: __, 20_

Clerk

A Guide to Commercial Claims Court is available at the court listed above.

NOTE: If you desire a jury trial, you must, before the day upon which you have been notified to appear, file with the Clerk of the Court a written demand for a trial by jury. You must also pay to the clerk a jury fee of $55 and file an undertaking in the sum of $50 or deposit such sum in cash to secure the payment of any costs that may be awarded against you. You will also be required to make an affidavit specifying the issues of fact which you desire to have tried by a jury and stating that such trial is desired and demanded in good faith.

Under the law, the Court may award $25 additional costs to the plaintiff if a jury trial is demanded by you and a decision is rendered against you.

(d) The clerk shall note on the application the date on which the notice was mailed and the address, the date of delivery shown by the return receipt, and the name of the addressee or agent signing the receipt.

(e) If, after the expiration of 21 days (30 days in the case of a commercial claim out of a consumer transaction) from the date the notice was mailed, the ordinary first class mailing has not been returned as undeliverable, the defendant shall be presumed to have received notice of the claim.

(f) If service of notice cannot be made upon the defendant within four months following the date on which the action was first instituted, the action shall be dismissed without prejudice.

(1) Where all parties appear by attorneys, the case may be transferred to a regular part of court, and the claimant shall pay any additional filing fees required by law. If the claimant fails or refuses to pay such filing fees, the court shall dismiss the case.

(g) Unless the court shall otherwise order, a defendant to whom notice was duly given who fails to appear, either in person or by attorney, at the hearing on the day and time fixed, shall be held to be in default, except that no default shall be ordered if the defendant or his or her attorney appears within one hour after the time fixed. Notice of the default judgment, containing the information set forth in UDCA section 1807-A, shall be mailed by first class mail to the claimant and the defendant. The defaulting party may apply to have the default vacated by submitting a written request to the court; proceedings on default shall be governed by, but not limited to, section 5015 of the CPLR.

(h) If at the hearing it shall appear that the defendant has a counterclaim in an amount within the jurisdiction of the part for the hearing of small claims, the judge may either proceed forthwith to hear the entire case or may adjourn the hearing for a period of not more than 20 days or as soon thereafter as may be practicable, at which adjourned time the hearing of the entire case shall be had. An adjournment shall be granted at the request of the claimant if the defendant did not file the counterclaim with the court within five days of receiving the notice of claim.

(i) An oath or affirmation shall be administered to all witnesses. The court shall conduct the hearing in such manner as it deems best suited to discover the facts and to determine the justice of the case. If the claimant, or an attorney in his or her behalf, does not appear at the time set for hearing, the court may dismiss the claim for want of prosecution or enter a finding on the merits for the defendant, or make such other disposition as it may deem proper.

(j) Where, after a claim is filed with the clerk, either party to the action desires to implead one or more additional defendants, the clerk shall, upon receipt of the proper fees, issue and mail a notice of claim to each additional defendant under the procedure set forth above.

(k) The undertaking to be filed by a defendant desiring a jury trial shall be in the form prescribed by the relevant provisions of article 25 of the CPLR.

(l) All motions pertaining to commercial claims shall be made returnable at a part and session appointed for the hearing of commercial claims, except that a motion to remove a case from the commercial claims part shall be assigned to a judge in the manner authorized by the Chief Administrator.

(m) There may be arbitration of any commercial claims controversy.

(1) The parties to any controversy, except infants and incompetents, may submit the same for arbitration to any attorney, duly appointed as a commercial claims arbitrator by the administrative judge of this court, so assigned for such duty at that term of the court and upon whom they shall agree.

(2) The parties shall sign a consent which shall contain the name of the arbitrator, a brief recital of the nature of the controversy to be determined, a statement that they will abide by these rules, and an affirmation that the decision of the arbitrator is final and that no appeal shall lie from the award. The consent must be filed with the clerk of the commercial claims part.

(3) The arbitrator shall forthwith proceed to hear the controversy. He or she shall not be bound by the rules regarding the admissibility of evidence, but all testimony shall be given under oath or affirmation. Either party may be represented by counsel, but no record of the proceeding before the arbitrator shall be kept. No expense shall be incurred by the arbitrator except upon the consent in writing of the parties.

(4) After the first hearing, neither party may withdraw from the arbitration unless both parties consent to, or the arbitrator directs, a discontinuance of the proceeding.

(5) The arbitrator shall make his or her award in writing and file the same forthwith, together with an opinion, if any, with the clerk of the commercial claims part. Unless both parties file a request in writing not to enter judgment, the clerk shall, within two days after the filing of the award, enter judgment in accordance therewith, provided the award has been filed within 30 days from the date of filing the consent. The time within which the clerk shall enter judgment may be extended by a stipulation in writing for a further period not to exceed 30 days.

(6) No fees or disbursements of any kind shall be demanded or received except as hereinabove provided.

(n) The court or a supervising judge thereof may transfer a commercial claim to any other part of the court for the purpose of subjecting such claim to arbitration pursuant to Part 28 of this Title and rule 3405 of the CPLR. In the event a trial de novo is demanded pursuant to Part 28, the transfer shall be deemed rescinded and the claim shall be heard in the commercial claims part of the court no later than 30 days after the demand is made unless thereafter it is transferred to any other part of court pursuant to law.

N.Y. Comp. Codes R. & Regs. Tit. 22 § 212.41-a