senate Bill S6662

2011-2012 Legislative Session

Relates to the territorial definition of a commercial claim

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Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 16, 2012 referred to judiciary
delivered to assembly
passed senate
May 07, 2012 advanced to third reading
May 02, 2012 2nd report cal.
May 01, 2012 1st report cal.629
Mar 08, 2012 referred to judiciary

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S6662 - Bill Details

Current Committee:
Law Section:
Uniform District Court Act
Laws Affected:
Amd §1801-A, UDCA

S6662 - Bill Texts

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Relates to the territorial definition of a commercial claim.

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BILL NUMBER:S6662

TITLE OF BILL:
An act
to amend the
uniform district court act, in relation to the territorial definition of
a commercial claim

This is one in a series of measures being introduced at the request of
the Chief Administrative Judge upon the recommendation of her Local
Courts Advisory Committee.

This measure would amend the Uniform District Court Act to clarify the
territory where a defendant can be found in order for a District
Court to have subject matter jurisdiction over a commercial claim
against that defendant.

Currently, the Uniform District Court Act requires that in commercial
claims proceedings, the defendant must reside, have an office for the
transaction of business, or be regularly employed "within the
district in the county where a court is located." See UDCA

§1801-A(a). The District Courts are organized into districts. The
Nassau County District Court is organized into four judicial
districts. The first judicial district of this court encompasses the
entire county of Nassau. The second judicial district encompasses the
town of Hempstead. The third judicial district encompasses the town
of North Hempstead. The fourth judicial district encompasses the town
of Oyster Bay. See UDCA §2405. The Suffolk County District Court
encompasses five towns in the western part of Suffolk County and is
organized into six districts. The first judicial district encompasses
the territory covered by the five towns collectively. The second
judicial district encompasses the town of Babylon. The third judicial
district encompasses the town of Huntington. The fourth judicial
district encompasses the town of Smithtown. The fifth judicial
district encompasses the town of Islip. The sixth judicial district
encompasses the
town of Brookhaven. See UDCA §2403. The phrase "within the district in
the county where a court is located" unnecessarily restricts the
ability of the District Court to exercise subject matter jurisdiction
over a commercial claim by making the exercise of that jurisdiction
contingent upon the defendant having contact with the specific town
encompassed by the particular division of the District Court where
the action was filed.

This measure removes that restriction by replacing the phrase "within
the district in the county" to
"within a district in the county" and
thereby enables a party to commence a commercial small claim in any
division of the District Court provided the defendant has the

requisite contact with any part of the total territory encompassed by
the court.

By amending UDCA § 1801-A(a) to make a defendant's contacts with any
constituent district of the court sufficient to confer jurisdiction,
regardless whether the defendant has territorial contacts with the
specific district court holding the trial, this measure would provide
for the expeditious resolution of a commercial claim.

This measure would have no fiscal impact upon the State. It would take
effect immediately.

LEGISLATIVE HISTORY:
None. New proposal.

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

                                  6662

                            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  uniform  district court act, in relation to the
  territorial definition of a commercial claim

  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 uniform 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  or  associ-
ation,  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] A district
in the county where the court is located.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14131-01-2

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