Senate Bill S4062

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

                                  4062

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 26, 2015
                               ___________

Introduced  by  Sen. SAMPSON -- 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,  in  relation  to
  commencement of a small claims action

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

  Section 1.  The opening paragraph of subdivision (a) of section 1803-A
of the New York city civil court act, as amended by section 35 of part J
of chapter 62 of the laws of 2003, is amended to read as follows:
  Commercial claims other than claims arising  out  of  consumer  trans-
actions  shall be commenced upon the payment by the claimant of a filing
fee of twenty-five dollars and the cost of mailings as herein  provided,
without  the  service  of  a summons and, except by special order of the
court, without the service of any pleading other than a required certif-
ication verified as to its  truthfulness  by  the  claimant  on  a  form
prescribed  by  the  state office of court administration and filed with
the clerk, that no more than five such actions or proceedings (including
the instant action or  proceeding)  have  been  instituted  during  that
calendar  month,  and a required statement of its cause of action by the
claimant or someone in its behalf to the clerk,  who  shall  reduce  the
same to a concise, written form and record it in a docket kept especial-
ly  for  such  purpose. Such procedure shall provide that the commercial
claims part of the court shall have  no  jurisdiction  over,  and  shall
dismiss,  any  case  with respect to which the required certification is
not made upon the attempted institution of  the  action  or  proceeding.
Such  procedure shall provide for the sending of notice of such claim by
[ordinary first class mail  and]  certified  mail  with  return  receipt
requested  to  the  party  complained  against  at  his residence, if he
resides within the city of New York, and his residence is known  to  the
claimant,  or  at  his  office or place of regular employment within the
city of New York if he does not reside therein or his  residence  within

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09120-01-5
              

S. 4062                             2

the  city of New York is not known to the claimant. [If, after the expi-
ration of twenty-one days, such ordinary first  class  mailing  has  not
been  returned  as  undeliverable, the party complained against shall be
presumed  to  have  received  notice  of  such claim.] Such notice shall
include a clear description of the procedure for filing a  counterclaim,
pursuant to subdivision (d) of this section.
  S  2.  Subdivision  (b)  of  section 1803-A of the New York city civil
court act, as amended by section 35 of part J of chapter 62 of the  laws
of 2003, is amended to read as follows:
  (b)  (1)  Commercial  claims in actions arising out of consumer trans-
actions shall be commenced upon the payment by the claimant of a  filing
fee  of twenty-five dollars and the cost of mailings as herein provided,
without the service of a summons and, except by  special  order  of  the
court,  without the service of any pleading other than a required state-
ment of the cause of action by the claimant or someone on its behalf  of
the clerk, who shall reduce the same to a concise written form including
the  information required by subdivision (c) of this section, denominate
it conspicuously as a consumer transaction, and record it in the  docket
marked  as  a  consumer  transaction,  and  by  filing  with the clerk a
required certificate verified as to its truthfulness by the claimant  on
forms prescribed by the state office of court administration.
  (2)  Such verified certificate shall certify (i) that the claimant has
mailed by ordinary first class mail to the party  complained  against  a
demand letter, no less than ten days and no more than one hundred eighty
days  prior  to the commencement of the claim, and (ii) that, based upon
information and belief, the claimant has not instituted more  than  five
actions  or  proceedings  (including  the  instant action or proceeding)
during the calendar month.
  (3) A form for the demand letter shall be prescribed and furnished  by
the state office of court administration and shall require the following
information:  the  date  of  the  consumer  transaction; the amount that
remains unpaid; a copy of the original debt instrument or other document
underlying the debt and an accounting  of  all  payments,  and,  if  the
claimant  was  not  a  party  to the original transaction, the names and
addresses of the parties to the original transaction;  and  a  statement
that  the  claimant  intends  to  use this part of the court to obtain a
judgment, that further notice of a hearing date  will  be  sent,  unless
payment  is  received by a specified date, and that the party complained
against will be entitled to appear  at  said  hearing  and  present  any
defenses to the claim.
  (4)  In  the  event  that  the  verified  certificate  is not properly
completed by the claimant, the court  shall  not  allow  the  action  to
proceed  until  the  verified  certificate  is corrected. Notice of such
claim shall be sent by the clerk by [both ordinary first class mail and]
certified mail with return receipt requested  to  the  party  complained
against at his residence, if he resides within the city of New York, and
his  residence  is  known  to the claimant, or at his office or place of
regular employment within the city of New York if  he  does  not  reside
therein or his residence within the city of New York is not known to the
claimant.  [If, after the expiration of thirty days, such ordinary first
class  mailing  has  not  been  returned  as  undeliverable,  the  party
complained against shall be presumed to have  received  notice  of  such
claim.]
  (5) Such procedure shall further provide for an early hearing upon and
determination  of such claim. The hearing shall be scheduled in a manner
which, to the extent possible, minimizes the time the  party  complained

S. 4062                             3

against  must  be  absent from employment. Either party may request that
the hearing be scheduled during evening hours, provided that the hearing
shall not be scheduled during evening hours if it would cause  unreason-
able  hardship  to  either  party. The court shall not unreasonably deny
requests for evening hearings if such requests are made by the  claimant
upon commencement of the action or by the party complained against with-
in fourteen days of receipt of the notice of claim.
  S 3. This act shall take effect immediately and shall apply to actions
commenced on and after such date.