New Law Raises Monetary Cap for Disputes Brought in NYC Small Claims Court
The new law is intended to allow more litigants to avoid hiring an attorney to resolve minor disputes by placing more cases in Small Claims Court.
December 17, 2019 at 04:44 PM
3 minute read
Litigants in New York City can now resolve disputes valued at up to $10,000 in Small Claims Court—double the previous jurisdictional limit in that venue—under new legislation approved by Gov. Andrew Cuomo.
The new law is intended to allow more litigants to avoid hiring an attorney to resolve minor disputes by placing more cases in Small Claims Court, rather than in New York City Civil Court.
The legislation was proposed by the state Office of Court Administration as a program bill, which is a measure pitched by a statewide official, in this case Chief Administrative Judge Lawrence Marks, and sponsored by members of the state Legislature.
The measure was a recommendation from the Advisory Committee on Civil Practice, a standing committee that issues an annual report with legislative recommendations.
In its latest report, the committee said the previous cap of $5,000 in New York City for matters in Small Claims Court didn't represent how expensive common disputes can be.
"The current statutory cap for small claims does not reflect the modern-day cost of many disputes, particularly in New York City, and bars many people seeking redress in small claims court who cannot otherwise afford counsel," the report said.
The monetary limit in Small Claims Court was last raised 15 years ago in 2004, according to Lucian Chalfen, a spokesman for the state Office of Court Administration. Chalfen said the city's court system is prepared to handle an increase in small claims cases.
"It is gratifying to see the jurisdiction of the Small Claims Court increased to better reflect the true cost of living, and litigating, in New York City," Chalfen said. "The Small Claims Part of the New York City Civil Court anticipated this change and is ready to handle the increase in filings."
The measure was sponsored by State Sen. Michael Gianaris, a Democrat from Queens. Gianaris, an attorney, said Tuesday that the bill is intended to provide more opportunities for individuals to seek redress without having to hire an attorney.
"This is an important law that will make it easier for people to achieve justice in relatively minor disputes without needing to hire an attorney," Gianaris said. "I am pleased to see this legislation addressing basic fairness signed into law."
In the state Assembly, the legislation was sponsored by Assemblyman Michael DenDekker, a Democrat from Queens. DenDekker is not an attorney.
The new law, which takes effect immediately, only applies to cases within New York City. The cap for small claims outside New York City will remain at $5,000 in city courts and $3,000 in town and village courts, according to Gianaris' office.
READ MORE:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllCourt System Names New Administrative Judges for New York City Courts in Leadership Shakeup
3 minute readRetired Judge Susan Cacace Elected Westchester DA in Win for Democrats
In Eric Adams Case and Other Corruption Matters, Prosecutors Seem Bent on Pushing Boundaries of Their Already Awesome Power
5 minute readTrending Stories
- 1Call for Nominations: Elite Trial Lawyers 2025
- 2Senate Judiciary Dems Release Report on Supreme Court Ethics
- 3Senate Confirms Last 2 of Biden's California Judicial Nominees
- 4Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
- 5Tom Girardi to Surrender to Federal Authorities on Jan. 7
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250