S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6660

                            I N  S E N A T E

                              March 8, 2012
                               ___________

Introduced  by Sen. BONACIC -- (at request of the Office of Court Admin-
  istration) -- read twice and ordered printed, and when printed  to  be
  committed to the Committee on Judiciary

AN  ACT to amend the New York city civil court act, the uniform district
  court act and the uniform city court act, in relation to the authority
  of a limited liability company to commence a commercial  claim  action
  or proceeding

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision (a) of section 1801-A  of  the  New  York  city
civil  court  act,  as  amended  by  chapter 435 of the laws of 1992, is
amended to read as follows:
  (a) The term "commercial claim" or "commercial claims" as used in this
article shall mean and include any cause of action for money only not in
excess of the maximum amount permitted for a small claim  in  the  small
claims part of the court, exclusive of interest and costs, provided that
subject  to the limitations contained in section eighteen hundred nine-A
of this article, the claimant is  a  corporation,  partnership,  LIMITED
LIABILITY  COMPANY  or  association[,] which has its principal office in
the state of New York and provided that the defendant either resides, or
has an office for the transaction of business or a  regular  employment,
within the city of New York.
  S  2. Section 1809-A of the New York city civil court act, as added by
chapter 653 of the laws of 1987, is amended to read as follows:
  S 1809-A. Procedures relating to corporations, associations,  insurers
and  assignees.   (a) Any corporation, including a municipal corporation
or public benefit corporation, partnership, LIMITED LIABILITY COMPANY or
association[,] which has its principal office in the city  of  New  York
and  an  assignee  of  any  commercial  claim may institute an action or
proceeding under this article.
  (b) No person or co-partnership, engaged directly or indirectly in the
business of collection and adjustment of  claims,  and  no  corporation,
LIMITED LIABILITY COMPANY or association, directly or indirectly, itself
or  by  or through its officers, agents or employees, shall solicit, buy

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD14137-01-2

S. 6660                             2

or take an assignment of, or be in any manner interested  in  buying  or
taking  an assignment of a bond, promissory note, bill of exchange, book
debt, or other thing in action, or any claim or demand, with the  intent
and  for  the  purpose of bringing an action or proceeding thereon under
this article.
  (c) A corporation, partnership, LIMITED LIABILITY COMPANY  or  associ-
ation, which institutes an action or proceeding under this article shall
be  limited to five such actions or proceedings per calendar month. Such
corporation, partnership, LIMITED LIABILITY COMPANY or association shall
complete and file with the clerk the required certification, provided it
is true and verified as to its truthfulness, as a  prerequisite  to  the
institution of an action or proceeding in this part of the court.
  (d) A corporation may appear as a party in any action brought pursuant
to  this  article  by  an attorney as well as by any authorized officer,
director or employee of the corporation provided that the appearance  by
a  non-lawyer  on  behalf of a corporation shall be deemed to constitute
the requisite authority to bind  the  corporation  in  a  settlement  or
trial.  The court or arbitrator may make reasonable inquiry to determine
the authority of any person who appears for the corporation in a commer-
cial claims part case.
  S 3. Subdivision (a) of section 1801-A of the uniformed district court
act, as amended by chapter 41 of the laws of 2006, is amended to read as
follows:
  (a) The term "commercial claim" or "commercial claims" as used in this
act shall mean and include any cause of action for  money  only  not  in
excess  of  the  maximum amount permitted for a small claim in the small
claims part of the court, exclusive of interest and costs, provided that
subject to the limitations contained in section eighteen hundred  nine-A
of  this  article,  the  claimant is a corporation, partnership, LIMITED
LIABILITY COMPANY or association[,] which has its  principal  office  in
the state of New York and provided that the defendant either resides, or
has  an  office for the transaction of business or a regular employment,
within the district in the county where the court is located.
  S 4. Section 1809-A of the uniform district court  act,  as  added  by
chapter 653 of the laws of 1987, is amended to read as follows:
S 1809-A.  Procedures  relating  to corporations, associations, insurers
             and assignees.
  (a) Any corporation, including a municipal corporation or public bene-
fit corporation,  partnership,  LIMITED  LIABILITY  COMPANY  or  associ-
ation[,]  which has its principal office in the state of New York and an
assignee of any commercial claim may institute an action  or  proceeding
under this article.
  (b) No person or co-partnership, engaged directly or indirectly in the
business  of  collection  and  adjustment of claims, and no corporation,
LIMITED LIABILITY COMPANY or association, directly or indirectly, itself
or by or through its officers, agents or employees, shall  solicit,  buy
or  take  an  assignment of, or be in any manner interested in buying or
taking an assignment of a bond, promissory note, bill of exchange,  book
debt,  or other thing in action, or any claim or demand, with the intent
and for the purpose of bringing an action or  proceeding  thereon  under
this article.
  (c)  A  corporation, partnership, LIMITED LIABILITY COMPANY or associ-
ation[,] which institutes an action or  proceeding  under  this  article
shall be limited to five such actions or proceedings per calendar month.
Such  corporation, partnership, LIMITED LIABILITY COMPANY or association
shall complete and file  with  the  clerk  the  required  certification,

S. 6660                             3

provided  it is true and verified as to its truthfulness, as a prerequi-
site to the institution of an action or proceeding in this part  of  the
court.
  (d) A corporation may appear as a party in any action brought pursuant
to  this  article  by  an attorney as well as by any authorized officer,
director or employee of the corporation provided that the appearance  by
a  non-lawyer  on  behalf of a corporation shall be deemed to constitute
the requisite authority to bind  the  corporation  in  a  settlement  or
trial.  The court or arbitrator may make reasonable inquiry to determine
the authority of any person who appears for the corporation in a commer-
cial claims part case.
  S 5. Subdivision (a) of section 1801-A of the uniform city court  act,
as  amended  by  chapter  847 of the laws of 1990, is amended to read as
follows:
  (a) The term "commercial claim" or "commercial claims" as used in this
act shall mean and include any cause of action for  money  only  not  in
excess  of  the  maximum amount permitted for a small claim in the small
claims part of the court, exclusive of interest and costs, provided that
subject to the limitations contained in section eighteen hundred  nine-A
of  this  article,  the  claimant is a corporation, partnership, LIMITED
LIABILITY COMPANY or association[,] which has its  principal  office  in
the state of New York and provided that the defendant either resides, or
has  an  office for the transaction of business or a regular employment,
within the county in which the court is located. In a city court  having
a basic monetary jurisdiction in civil matters of less than one thousand
dollars, the commercial claims jurisdiction of such court shall be equal
to its basic monetary jurisdiction.
  S 6. Section 1809-A of the uniform city court act, as added by chapter
653 of the laws of 1987, is amended to read as follows:
S  1809-A.  Procedures  relating to corporations, associations, insurers
              and assignees.
  (a) Any corporation, including a municipal corporation or public bene-
fit corporation, partnership, LIMITED LIABILITY COMPANY or  association,
which  has its principal office in the state of New York and an assignee
of any commercial claim may institute an action or proceeding under this
article.
  (b) No person or co-partnership, engaged directly or indirectly in the
business of collection and adjustment of  claims,  and  no  corporation,
LIMITED LIABILITY COMPANY or association, directly or indirectly, itself
or  by  or through its officers, agents or employees, shall solicit, buy
or take an assignment of, or be in any manner interested  in  buying  or
taking  an assignment of a bond, promissory note, bill of exchange, book
debt, or other thing in action, or any claim or demand, with the  intent
and  for  the  purpose of bringing an action or proceeding thereon under
this article.
  (c) A corporation, partnership, LIMITED LIABILITY COMPANY  or  associ-
ation[,]  which  institutes  an  action or proceeding under this article
shall be limited to five such actions or proceedings per calendar month.
Such corporation, partnership, LIMITED LIABILITY COMPANY or  association
shall  complete  and  file  with  the  clerk the required certification,
provided it is true and verified as to its truthfulness, as a  prerequi-
site  to  the institution of an action or proceeding in this part of the
court.
  (d) A corporation may appear as a party in any action brought pursuant
to this article by an attorney as well as  by  any  authorized  officer,
director  or employee of the corporation provided that the appearance by

S. 6660                             4

a non-lawyer on behalf of a corporation shall be  deemed  to  constitute
the  requisite  authority  to  bind  the  corporation in a settlement or
trial. The court or arbitrator may make reasonable inquiry to  determine
the authority of any person who appears for the corporation in a commer-
cial claims part case.
  S 7. This act shall take effect immediately.