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.
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