S. 7200 2
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 TWEN-
TY-EIGHT OF THIS ARTICLE, THE CLAIMANT IS A CORPORATION, PARTNERSHIP 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.
(B) THE TERM "CONSUMER TRANSACTION" MEANS A TRANSACTION BETWEEN A
CLAIMANT AND A NATURAL PERSON, WHEREIN THE MONEY, PROPERTY OR SERVICE
WHICH IS THE SUBJECT OF THE TRANSACTION IS PRIMARILY FOR PERSONAL, FAMI-
LY OR HOUSEHOLD PURPOSES.
§ 1821. PARTS FOR THE DETERMINATION OF COMMERCIAL CLAIMS ESTABLISHED.
THE CHIEF ADMINISTRATOR SHALL ASSIGN THE TIMES AND PLACES FOR HOLDING,
AND THE JUDGES WHO SHALL HOLD, ONE OR MORE PARTS OF THE COURT FOR THE
HEARING OF COMMERCIAL CLAIMS AS HEREIN DEFINED, AND THE RULES MAY REGU-
LATE THE PRACTICE AND PROCEDURE CONTROLLING THE DETERMINATION OF SUCH
CLAIMS AND PRESCRIBE AND FURNISH THE FORMS FOR INSTITUTING THE SAME.
THERE SHALL BE AT LEAST ONE EVENING SESSION OF EACH PART EVERY MONTH FOR
THE HEARING OF COMMERCIAL CLAIMS, PROVIDED HOWEVER, THAT THE CHIEF
ADMINISTRATOR MAY PROVIDE FOR EXEMPTION FROM THIS REQUIREMENT WHERE
THERE EXISTS NO DEMONSTRATED NEED FOR EVENING SESSIONS. THE CHIEF ADMIN-
ISTRATOR SHALL NOT COMBINE COMMERCIAL CLAIMS PART ACTIONS WITH SMALL
CLAIMS PART ACTIONS FOR PURPOSES OF CONVENIENCE UNLESS A PREFERENCE IS
GIVEN TO SMALL CLAIMS AND TO COMMERCIAL CLAIMS ARISING OUT OF CONSUMER
TRANSACTIONS. SUCH PRACTICE, PROCEDURE AND FORMS SHALL DIFFER FROM THE
PRACTICE, PROCEDURE AND FORMS USED IN THE COURT FOR OTHER THAN SMALL
CLAIMS AND COMMERCIAL CLAIMS, NOTWITHSTANDING ANY PROVISION OF LAW TO
THE CONTRARY. THEY SHALL CONSTITUTE A SIMPLE, INFORMAL AND INEXPENSIVE
PROCEDURE FOR THE PROMPT DETERMINATION OF COMMERCIAL CLAIMS IN ACCORD-
ANCE WITH THE RULES AND PRINCIPLES OF SUBSTANTIVE LAW. THE PROCEDURE
ESTABLISHED PURSUANT TO THIS ARTICLE SHALL NOT BE EXCLUSIVE OF BUT SHALL
BE ALTERNATIVE TO THE PROCEDURE NOW OR HEREAFTER ESTABLISHED WITH
RESPECT TO ACTIONS COMMENCED IN THE COURT BY THE SERVICE OF A SUMMONS.
NO RULE TO BE ENACTED PURSUANT TO THIS ARTICLE SHALL DISPENSE WITH OR
INTERFERE WITH THE TAKING OF STENOGRAPHIC MINUTES OF ANY HEARING OF ANY
BUSINESS CLAIM HEREUNDER.
§ 1822. COMMENCEMENT OF ACTION UPON COMMERCIAL CLAIMS.
(A) (I) COMMERCIAL CLAIMS OTHER THAN CLAIMS ARISING OUT OF CONSUMER
TRANSACTIONS 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
CERTIFICATION 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 STATEMENT OF ITS CAUSE OF ACTION BY THE CLAIMANT
OR SOMEONE ON THE CLAIMANTS 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
S. 7200 3
REQUESTED TO THE PARTY COMPLAINED AGAINST AT HIS RESIDENCE, IF HE
RESIDES WITHIN THE COUNTY IN WHICH THE COURT IS LOCATED, AND HIS RESI-
DENCE IS KNOWN TO THE CLAIMANT, OR AT HIS OFFICE OR PLACE OF REGULAR
EMPLOYMENT WITHIN SUCH COUNTY IF HE DOES NOT RESIDE THEREIN OR HIS RESI-
DENCE WITHIN THE COUNTY IS NOT KNOWN TO THE CLAIMANT. IF, AFTER THE
EXPIRATION 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.
(II) 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 AGAINST MUST BE ABSENT FROM EMPLOYMENT.
(III) 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 UNREASONABLE 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 WITHIN FOURTEEN DAYS OF RECEIPT OF
THE NOTICE OF CLAIM.
(B) (I) 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 THE CLAIMANTS
BEHALF TO 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 ADMINIS-
TRATION.
(II) SUCH VERIFIED CERTIFICATE SHALL CERTIFY (A) 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 (B) 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.
(III) 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 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 UNREASONABLE HARDSHIP TO EITHER PARTY. THE COURT SHALL NOT UNREA-
SONABLY DENY REQUESTS FOR EVENING HEARINGS IF SUCH REQUESTS ARE MADE BY
THE CLAIMANT UPON COMMENCEMENT OF THE ACTION OR BY THE PARTY COMPLAINED
AGAINST WITHIN FOURTEEN DAYS OF RECEIPT OF THE NOTICE OF CLAIM.
(C) THE CLERK SHALL FURNISH EVERY CLAIMANT, UPON COMMENCEMENT OF THE
ACTION, AND EVERY PARTY COMPLAINED AGAINST, WITH THE NOTICE OF CLAIM,
AND WITH INFORMATION WRITTEN IN CLEAR AND COHERENT LANGUAGE WHICH SHALL
BE PRESCRIBED AND FURNISHED BY THE STATE OFFICE OF COURT ADMINISTRATION,
CONCERNING THE COMMERCIAL CLAIMS PART. SUCH INFORMATION SHALL INCLUDE,
S. 7200 4
BUT NOT BE LIMITED TO, THE FORM FOR CERTIFICATION AND FILING BY THE
CLAIMANT THAT NO MORE THAN FIVE SUCH ACTIONS OR PROCEEDINGS HAVE BEEN
INSTITUTED DURING THAT CALENDAR MONTH, AND AN EXPLANATION OF THE FOLLOW-
ING TERMS AND PROCEDURES: ADJOURNMENTS, COUNTERCLAIMS, JURY TRIAL
REQUESTS, EVENING HOUR REQUESTS, DEMAND LETTERS IN CASES CONCERNING
CONSUMER TRANSACTIONS, DEFAULT JUDGMENTS, SUBPOENAS, ARBITRATION AND
COLLECTION METHODS, THE RESPONSIBILITY OF THE JUDGMENT CREDITOR TO
COLLECT DATA ON THE JUDGMENT DEBTOR'S ASSETS, THE ABILITY OF THE COURT
PRIOR TO ENTERING JUDGMENT TO ORDER EXAMINATION OF OR DISCLOSURE BY, THE
DEFENDANT AND RESTRAIN HIM, AND FEES. THE INFORMATION SHALL BE AVAILABLE
IN ENGLISH AND, IF THE CHIEF ADMINISTRATOR DETERMINES IT IS APPROPRIATE
OR NECESSARY, IN SPANISH. LARGE SIGNS IN ENGLISH AND, IF THE CHIEF
ADMINISTRATOR REQUIRES IT, IN SPANISH SHALL BE POSTED IN CONSPICUOUS
LOCATIONS IN EACH COMMERCIAL CLAIMS PART CLERK'S OFFICE, ADVISING THE
PUBLIC OF ITS AVAILABILITY.
(D) A DEFENDANT WHO WISHES TO FILE A COUNTERCLAIM SHALL DO SO BY
FILING WITH THE CLERK A STATEMENT CONTAINING SUCH COUNTERCLAIM WITHIN
FIVE DAYS OF RECEIVING THE NOTICE OF CLAIM. AT THE TIME OF SUCH FILING
THE DEFENDANT SHALL PAY TO THE CLERK A FILING FEE OF FIVE DOLLARS PLUS
THE COST OF MAILINGS WHICH ARE REQUIRED PURSUANT TO THIS SUBDIVISION.
THE CLERK SHALL FORTHWITH SEND NOTICE OF THE COUNTERCLAIM BY ORDINARY
FIRST-CLASS MAIL TO THE CLAIMANT. IF THE DEFENDANT FAILS TO FILE THE
COUNTERCLAIM IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION, THE
DEFENDANT RETAINS THE RIGHT TO FILE THE COUNTERCLAIM, HOWEVER THE CLAIM-
ANT MAY, BUT SHALL NOT BE REQUIRED TO, REQUEST AND OBTAIN ADJOURNMENT OF
THE HEARING TO A LATER DATE. THE CLAIMANT MAY REPLY TO THE COUNTERCLAIM
BUT SHALL NOT BE REQUIRED TO DO SO.
§ 1823. INFORMAL AND SIMPLIFIED PROCEDURE ON COMMERCIAL CLAIMS.
THE COURT SHALL CONDUCT HEARINGS UPON COMMERCIAL CLAIMS IN SUCH MANNER
AS TO DO SUBSTANTIAL JUSTICE BETWEEN THE PARTIES ACCORDING TO THE RULES
OF SUBSTANTIVE LAW AND SHALL NOT BE BOUND BY STATUTORY PROVISIONS OR
RULES OF PRACTICE, PROCEDURE, PLEADING OR EVIDENCE, EXCEPT STATUTORY
PROVISIONS RELATING TO PRIVILEGED COMMUNICATIONS AND PERSONAL TRANS-
ACTIONS OR COMMUNICATIONS WITH A DECEDENT OR PERSON WITH A MENTAL
ILLNESS. AN ITEMIZED BILL OR INVOICE, RECEIPTED OR MARKED PAID, OR TWO
ITEMIZED ESTIMATES FOR SERVICES OR REPAIRS, ARE ADMISSIBLE IN EVIDENCE
AND ARE PRIMA FACIE EVIDENCE OF THE REASONABLE VALUE AND NECESSITY OF
SUCH SERVICES AND REPAIRS. DISCLOSURE SHALL BE UNAVAILABLE IN COMMERCIAL
CLAIMS PROCEDURE EXCEPT UPON ORDER OF THE COURT ON SHOWING OF PROPER
CIRCUMSTANCES. THE PROVISIONS OF THIS ACT AND THE RULES OF THIS COURT,
TOGETHER WITH THE STATUTES AND RULES GOVERNING SUPREME COURT PRACTICE,
SHALL APPLY TO CLAIMS BROUGHT UNDER THIS ARTICLE SO FAR AS THE SAME CAN
BE MADE APPLICABLE AND ARE NOT IN CONFLICT WITH THE PROVISIONS OF THIS
ARTICLE; IN CASE OF CONFLICT, THE PROVISIONS OF THIS ARTICLE SHALL
CONTROL.
§ 1824. REMEDIES AVAILABLE; TRANSFER OF COMMERCIAL CLAIMS.
(A) UPON DETERMINATION OF A COMMERCIAL CLAIM, THE COURT SHALL DIRECT
JUDGMENT IN ACCORDANCE WITH ITS FINDINGS, AND, WHEN NECESSARY TO DO
SUBSTANTIAL JUSTICE BETWEEN THE PARTIES, MAY CONDITION THE ENTRY OF
JUDGMENT UPON SUCH TERMS AS THE COURT SHALL DEEM PROPER. PURSUANT TO
SECTION FIFTY-TWO HUNDRED TWENTY-NINE OF THE CIVIL PRACTICE LAW AND
RULES PRIOR TO ENTERING A JUDGMENT, THE COURT MAY ORDER THE EXAMINATION
OF OR DISCLOSURE BY, THE DEFENDANT AND RESTRAIN HIM TO THE SAME EXTENT
AS IF A RESTRAINING NOTICE HAD BEEN SERVED UPON HIM AFTER JUDGMENT WAS
ENTERED.
S. 7200 5
(B) THE COURT SHALL HAVE POWER TO TRANSFER ANY COMMERCIAL CLAIM OR
CLAIMS TO ANY OTHER PART OF THE COURT UPON SUCH TERMS AS THE RULES MAY
PROVIDE, AND TO PROCEED TO HEAR THE SAME ACCORDING TO THE USUAL PRACTICE
AND PROCEDURE APPLICABLE TO OTHER PARTS OF THE COURT.
(C) NO COUNTERCLAIM SHALL BE PERMITTED IN A COMMERCIAL CLAIMS ACTION,
UNLESS THE COURT WOULD HAVE HAD MONETARY JURISDICTION OVER THE COUNTER-
CLAIM IF IT HAD BEEN FILED AS A COMMERCIAL CLAIM. ANY OTHER CLAIM SOUGHT
TO BE MAINTAINED AGAINST THE CLAIMANT MAY BE FILED IN ANY COURT OF
COMPETENT JURISDICTION.
(D) IF THE DEFENDANT APPEARS TO BE ENGAGED IN REPEATED FRAUDULENT OR
ILLEGAL ACTS OR OTHERWISE DEMONSTRATES PERSISTENT FRAUD OR ILLEGALITY IN
THE CARRYING ON, CONDUCTING OR TRANSACTION OF BUSINESS, THE COURT SHALL
EITHER ADVISE THE ATTORNEY GENERAL IN RELATION TO HIS AUTHORITY UNDER
SUBDIVISION TWELVE OF SECTION SIXTY-THREE OF THE EXECUTIVE LAW, OR SHALL
ADVISE THE CLAIMANT TO DO THE SAME, BUT SHALL RETAIN JURISDICTION OVER
THE COMMERCIAL CLAIM.
(E) IF THE DEFENDANT APPEARS TO BE ENGAGED IN FRAUDULENT OR ILLEGAL
ACTS OR OTHERWISE DEMONSTRATES FRAUD OR ILLEGALITY IN THE CARRYING ON,
CONDUCTING OR TRANSACTION OF A LICENSED OR CERTIFIED BUSINESS, THE COURT
SHALL EITHER ADVISE THE APPROPRIATE STATE OR LOCAL LICENSING OR CERTIFY-
ING AUTHORITY OR SHALL ADVISE THE CLAIMANT TO DO THE SAME, BUT SHALL
RETAIN JURISDICTION OVER THE COMMERCIAL CLAIM.
§ 1825. TRIAL BY JURY; HOW OBTAINED; DISCRETIONARY COSTS.
A CLAIMANT COMMENCING AN ACTION UPON A COMMERCIAL CLAIM UNDER THIS
ARTICLE SHALL BE DEEMED TO HAVE WAIVED A TRIAL BY JURY, BUT IF SAID
ACTION SHALL BE REMOVED TO A REGULAR PART OF THE COURT, THE CLAIMANT
SHALL HAVE THE SAME RIGHT TO DEMAND A TRIAL BY JURY AS IF SUCH ACTION
HAD ORIGINALLY BEEN BEGUN IN SUCH PART. ANY PARTY TO SUCH ACTION, OTHER
THAN THE CLAIMANT, PRIOR TO THE DAY UPON WHICH HE IS NOTIFIED TO APPEAR
OR ANSWER, MAY FILE WITH THE COURT A DEMAND FOR A TRIAL BY JURY AND HIS
AFFIDAVIT THAT THERE ARE ISSUES OF FACT IN THE ACTION REQUIRING SUCH A
TRIAL, SPECIFYING THE SAME AND STATING THAT SUCH TRIAL IS DESIRED AND
INTENDED IN GOOD FAITH. SUCH DEMAND AND AFFIDAVIT SHALL BE ACCOMPANIED
WITH THE JURY FEE REQUIRED BY LAW AND AN UNDERTAKING IN THE SUM OF FIFTY
DOLLARS IN SUCH FORM AS MAY BE APPROVED BY THE RULES, PAYABLE TO THE
OTHER PARTY OR PARTIES, CONDITIONED UPON THE PAYMENT OF ANY COSTS WHICH
MAY BE ENTERED AGAINST HIM IN THE SAID ACTION OR ANY APPEAL WITHIN THIR-
TY DAYS AFTER THE ENTRY THEREOF; OR, IN LIEU OF SAID UNDERTAKING, THE
SUM OF FIFTY DOLLARS MAY BE DEPOSITED WITH THE CLERK OF THE COURT AND
THEREUPON THE CLERK SHALL FORTHWITH TRANSMIT SUCH ORIGINAL PAPERS OR
DULY ATTESTED COPIES THEREOF AS MAY BE PROVIDED BY THE RULES TO THE PART
OF THE COURT TO WHICH THE ACTION SHALL HAVE BEEN TRANSFERRED AND
ASSIGNED AND SUCH PART MAY REQUIRE PLEADINGS IN SUCH ACTION AS THOUGH IT
HAD BEEN BEGUN BY THE SERVICE OF A SUMMONS. SUCH ACTION MAY BE CONSID-
ERED A PREFERRED CAUSE OF ACTION. IN ANY COMMERCIAL CLAIM WHICH MAY HAVE
BEEN TRANSFERRED TO ANOTHER PART OF THE COURT, THE COURT MAY AWARD COSTS
UP TO TWENTY-FIVE DOLLARS TO THE CLAIMANT IF THE CLAIMANT PREVAILS.
§ 1826. PROCEEDINGS ON DEFAULT AND REVIEW OF JUDGMENTS.
(A) A CLAIMANT COMMENCING AN ACTION UPON A COMMERCIAL CLAIM UNDER THIS
ARTICLE SHALL BE DEEMED TO HAVE WAIVED ALL RIGHT TO APPEAL, EXCEPT THAT
EITHER PARTY MAY APPEAL ON THE SOLE GROUNDS THAT SUBSTANTIAL JUSTICE HAS
NOT BEEN DONE BETWEEN THE PARTIES ACCORDING TO THE RULES AND PRINCIPLES
OF SUBSTANTIVE LAW.
(B) THE CLERK SHALL MAIL NOTICE OF THE DEFAULT JUDGMENT BY FIRST-CLASS
MAIL, BOTH TO THE CLAIMANT AND TO THE PARTY COMPLAINED AGAINST. SUCH
NOTICE SHALL INFORM THE DEFAULTING PARTY, IN LANGUAGE PROMULGATED BY THE
S. 7200 6
STATE OFFICE OF COURT ADMINISTRATION, OF SUCH PARTY'S LEGAL OBLIGATION
TO PAY; THAT FAILURE TO PAY MAY RESULT IN GARNISHMENTS, REPOSSESSIONS,
SEIZURES AND SIMILAR ACTIONS; AND THAT IF THERE WAS A REASONABLE EXCUSE
FOR THE DEFAULT THE DEFAULTING PARTY MAY APPLY TO HAVE THE DEFAULT
VACATED BY SUBMITTING A WRITTEN REQUEST TO THE COURT.
(C) PROCEEDINGS ON DEFAULT UNDER THIS ARTICLE ARE TO BE GOVERNED BY,
BUT ARE NOT LIMITED TO, RULE FIVE THOUSAND FIFTEEN OF THE CIVIL PRACTICE
LAW AND RULES.
§ 1827. JUDGMENT OBTAINED TO BE RES JUDICATA IN CERTAIN CASES.
A JUDGMENT OBTAINED UNDER THIS ARTICLE SHALL NOT BE DEEMED AN ADJUDI-
CATION OF ANY FACT AT ISSUE OR FOUND THEREIN IN ANY OTHER ACTION OR
COURT EXCEPT THAT A SUBSEQUENT JUDGMENT OBTAINED IN ANOTHER ACTION OR
COURT INVOLVING THE SAME FACTS, ISSUES AND PARTIES SHALL BE REDUCED BY
THE AMOUNT OF A JUDGMENT AWARDED UNDER THIS ARTICLE.
§ 1828. PROCEDURES RELATING TO CORPORATIONS, ASSOCIATIONS, INSURERS AND
ASSIGNEES.
(A) ANY CORPORATION, INCLUDING A MUNICIPAL CORPORATION OR PUBLIC BENE-
FIT CORPORATION, PARTNERSHIP, 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 OR
ASSOCIATION, DIRECTLY OR INDIRECTLY, ITSELF OR BY OR THROUGH ITS OFFI-
CERS, 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 ANY 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 OR ASSOCIATION, WHICH INSTITUTES AN
ACTION OR PROCEEDING UNDER THIS ARTICLE SHALL BE LIMITED TO FIVE SUCH
ACTIONS OR PROCEEDINGS PER CALENDAR MONTH. SUCH CORPORATION, PARTNERSHIP
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.
§ 1829. LIMITATION ON RIGHT TO RESORT TO COMMERCIAL CLAIMS PROCEDURES.
IF THE CLERK SHALL FIND THAT THE PROCEDURES OF THE COMMERCIAL CLAIMS
PART ARE SOUGHT TO BE UTILIZED BY A CLAIMANT FOR PURPOSES OF OPPRESSION
OR HARASSMENT, AS WHERE A CLAIMANT HAS PREVIOUSLY RESORTED TO SUCH
PROCEDURES ON THE SAME CLAIM AND HAS BEEN UNSUCCESSFUL AFTER THE HEARING
THEREON, THE CLERK MAY IN HIS DISCRETION COMPEL THE CLAIMANT TO MAKE
APPLICATION TO THE COURT FOR LEAVE TO PROSECUTE THE CLAIM IN THE COMMER-
CIAL CLAIMS PART. THE COURT UPON SUCH APPLICATION MAY INQUIRE INTO THE
CIRCUMSTANCES AND, IF IT SHALL FIND THAT THE CLAIM HAS ALREADY BEEN
ADJUDICATED, OR THAT THE CLAIM IS SOUGHT TO BE BROUGHT ON SOLELY FOR
PURPOSES OF OPPRESSION OR HARASSMENT AND NOT UNDER COLOR OF RIGHT, IT
MAY MAKE AN ORDER DENYING THE CLAIMANT THE USE OF THE COMMERCIAL CLAIMS
PART TO PROSECUTE THE CLAIM.
S. 7200 7
§ 1830. INDEXING COMMERCIAL CLAIMS PART JUDGMENTS.
ALL WHOLLY OR PARTIALLY UNSATISFIED COMMERCIAL CLAIMS PART JUDGMENTS
SHALL BE INDEXED ALPHABETICALLY AND CHRONOLOGICALLY UNDER THE NAME OF
THE JUDGMENT DEBTOR. UPON SATISFYING THE JUDGMENT, THE JUDGMENT DEBTOR
SHALL PRESENT APPROPRIATE PROOF TO THE COURT AND THE COURT SHALL INDI-
CATE SUCH IN THE RECORDS.
§ 1831. ENFORCEMENT OF COMMERCIAL CLAIMS JUDGMENTS.
WHERE A JUDGMENT HAS BEEN ENTERED IN A COMMERCIAL CLAIMS PART AND
REMAINS UNSATISFIED, THE COMMERCIAL CLAIMS CLERK SHALL, UPON REQUEST,
ISSUE INFORMATION SUBPOENAS, AT NOMINAL COST, FOR THE JUDGMENT CREDITOR
AND PROVIDE THE CREDITOR WITH ASSISTANCE ON THEIR PREPARATION AND USE.
§ 1832. DUTY TO PAY JUDGMENTS.
(A) ANY PERSON, PARTNERSHIP, FIRM OR CORPORATION WHICH IS SUED IN A
COMMERCIAL CLAIMS PART FOR ANY CAUSE OF ACTION ARISING OUT OF ITS BUSI-
NESS ACTIVITIES, SHALL PAY ANY JUDGMENT RENDERED AGAINST IT IN ITS TRUE
NAME OR IN ANY NAME IN WHICH IT CONDUCTS BUSINESS. "TRUE NAME" INCLUDES
THE LEGAL NAME OF A NATURAL PERSON AND THE NAME UNDER WHICH A PARTNER-
SHIP, FIRM OR CORPORATION IS LICENSED, REGISTERED, INCORPORATED OR
OTHERWISE AUTHORIZED TO DO BUSINESS. "CONDUCTING BUSINESS" AS USED IN
THIS ARTICLE SHALL INCLUDE, BUT NOT BE LIMITED TO, MAINTAINING SIGNS AT
BUSINESS PREMISES OR ON BUSINESS VEHICLES; ADVERTISING; ENTERING INTO
CONTRACTS; AND PRINTING OR USING SALES SLIPS, CHECKS, INVOICES OR
RECEIPTS. WHENEVER A JUDGMENT HAS BEEN RENDERED AGAINST A PERSON, PART-
NERSHIP, FIRM OR CORPORATION IN OTHER THAN ITS TRUE NAME AND THE JUDG-
MENT HAS REMAINED UNPAID FOR THIRTY-FIVE DAYS AFTER RECEIPT BY THE JUDG-
MENT DEBTOR OF NOTICE OF ITS ENTRY, THE AGGRIEVED JUDGMENT CREDITOR
SHALL BE ENTITLED TO COMMENCE AN ACTION IN A COMMERCIAL CLAIMS PART
AGAINST SUCH JUDGMENT DEBTOR, NOTWITHSTANDING THE JURISDICTIONAL LIMIT
OF THE COURT, FOR THE SUM OF THE ORIGINAL JUDGMENT, COSTS, REASONABLE
ATTORNEY'S FEES, AND ONE HUNDRED DOLLARS.
(B) WHENEVER A JUDGMENT WHICH RELATES TO ACTIVITIES FOR WHICH A
LICENSE IS REQUIRED HAS BEEN RENDERED AGAINST A BUSINESS WHICH IS
LICENSED BY A STATE OR LOCAL LICENSING AUTHORITY AND WHICH REMAINS
UNPAID FOR THIRTY-FIVE DAYS AFTER RECEIPT BY THE JUDGMENT DEBTOR OF
NOTICE OF ITS ENTRY AND THE JUDGMENT HAS NOT BEEN STAYED OR APPEALED,
THE STATE OR LOCAL LICENSING AUTHORITY SHALL CONSIDER SUCH FAILURE TO
PAY, IF DELIBERATE OR PART OF A PATTERN OF SIMILAR CONDUCT INDICATING
RECKLESSNESS, AS A BASIS FOR THE REVOCATION, SUSPENSION, CONDITIONING OR
REFUSAL TO GRANT OR RENEW SUCH LICENSE. NOTHING HEREIN SHALL BE
CONSTRUED TO PREEMPT AN AUTHORITY'S EXISTING POLICY IF IT IS MORE
RESTRICTIVE.
(C) THE CLERK SHALL ATTACH TO THE NOTICE OF SUIT REQUIRED UNDER THIS
ARTICLE A NOTICE OF THE DUTY IMPOSED BY THIS SECTION.
§ 1833. DESIGNATION OF DEFENDANT; AMENDMENT PROCEDURE.
(A) A PARTY WHO IS IGNORANT, IN WHOLE OR IN PART, OF THE TRUE NAME OF
A PERSON, PARTNERSHIP, FIRM OR CORPORATION WHICH MAY PROPERLY BE MADE A
PARTY DEFENDANT, MAY PROCEED AGAINST SUCH DEFENDANT IN ANY NAME USED BY
THE PERSON, PARTNERSHIP, FIRM OR CORPORATION IN CONDUCTING BUSINESS, AS
DEFINED IN SUBDIVISION (A) OF SECTION EIGHTEEN HUNDRED TWENTY-TWO OF
THIS ARTICLE.
(B) IF THE TRUE NAME OF THE DEFENDANT BECOMES KNOWN AT ANY TIME PRIOR
TO THE HEARING ON THE MERITS, SUCH INFORMATION SHALL BE BROUGHT TO THE
ATTENTION OF THE CLERK, WHO SHALL IMMEDIATELY AMEND ALL PRIOR
PROCEEDINGS AND PAPERS. THE CLERK SHALL SEND AN AMENDED NOTICE TO THE
DEFENDANT, WITHOUT PAYMENT OF ADDITIONAL FEES BY THE PLAINTIFF, AND ALL
SUBSEQUENT PROCEEDINGS AND PAPERS SHALL BE AMENDED ACCORDINGLY.
S. 7200 8
(C) IN EVERY ACTION IN THE COMMERCIAL CLAIMS PART, AT THE HEARING ON
THE MERITS, THE JUDGE OR ARBITRATOR SHALL DETERMINE THE DEFENDANT'S TRUE
NAME. THE CLERK SHALL AMEND ALL PRIOR PROCEEDINGS AND PAPERS TO CONFORM
TO SUCH DETERMINATION, AND ALL SUBSEQUENT PROCEEDINGS AND PAPERS SHALL
BE AMENDED ACCORDINGLY.
(D) A PARTY AGAINST WHOM A JUDGMENT HAS BEEN ENTERED PURSUANT TO THIS
ARTICLE, IN ANY PROCEEDING UNDER RULE FIVE THOUSAND FIFTEEN OF THE CIVIL
PRACTICE LAW AND RULES FOR RELIEF FROM SUCH JUDGMENT, SHALL DISCLOSE ITS
TRUE NAME; ANY AND ALL NAMES IN WHICH IT IS CONDUCTING BUSINESS; AND ANY
AND ALL NAMES IN WHICH IT WAS CONDUCTING BUSINESS AT THE TIME OF THE
TRANSACTION OR OCCURRENCE ON WHICH SUCH JUDGMENT IS BASED. ALL SUBSE-
QUENT PROCEEDINGS AND PAPERS SHALL BE AMENDED TO CONFORM TO SUCH DISCLO-
SURE.
§ 2. This act shall take effect on the first of September next
succeeding the date on which it shall have become a law.
