Commercial Litigation: Pursuant to Section 1809 of New York’s Uniform District Court Act, corporations, partnerships and other legal entities cannot generally sue in New York City Small Claims Court. However, where these claimants have monetary damages that do not exceed $3,000.00, they may be able to instate an action in the New York City Commercial Small Claims division. This relatively unknown vehicle for litigation can often prove to be a cost effective and speedy way to recover small sums of monies.
However, there are certain requirements that apply prior to commencing a Commercial Small Claims action. First, the defendant must reside or have an office for the purpose of conducting business or have regular employment within New York City. In addition, the claimant must have a principal place of business in New York City. Where a claimant does not have a principal place of business in New York City, the Court will lack subject matter jurisdiction to hear the matter and will likely dismiss it. This is so even where the defendant consents and/or does not oppose to the commencement of the action in the Commercial Small Claims part.
In sum, utilizing the Commercial Small Claims division can be an effective way for corporations, partnerships and other legal entities to take care of smaller matters without the cost and expense of going through the New York Supreme Court system.
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