Does your business dispute belong in the New York Commercial Division?

This page explains New York law: the court rule that decides which business cases go to the Commercial Division of the New York State Supreme Court, 22 NYCRR 202.70. The Division is a group of Supreme Court parts with their own practice rules, in the counties and districts the rule names. KOR Law LLP's commercial litigation practice handles contract, fraud, UCC, fiduciary duty and injunction disputes, which are the core of the Division's work, and the first strategic question in many of those cases is whether the Division is available at all.

How does a case get into the Commercial Division, step by step?

1. Match the case type. The principal claims or counterclaims must fall within one of the twelve categories in 202.70(b), and the case must not be one of the exclusions in 202.70(c).
2. Measure the amount. The money threshold for the county is counted without punitive damages, interest, costs, disbursements and counsel fees (202.70(a)). For a claim seeking an injunction or a declaration, the measure is the value of the object of the action (202.70(b)).
3. File the RJI with the addendum. Within 90 days following service of the complaint, any party may seek assignment by filing a Request for Judicial Intervention with a completed Commercial Division RJI Addendum certifying that the case qualifies (202.70(d)(1)). The New York County court pages identify the addendum as form UCS 840C. Missing that window generally ends the right to ask, except under the transfer route below (202.70(d)(1), (e)).
4. Clerk review. In New York County, a commercial RJI goes through the Commercial Division Support Office, Room 119A, 60 Centre Street (646-386-3020). The clerk checks only the threshold or an exception; if met, a Commercial Division Justice is assigned at random and decides whether the case type belongs. If the addendum is missing, the case is assigned at random to a non-Division part.
5. Transfer request by another party. If one side files the RJI without marking the case commercial, any other party may write to the Administrative Judge within ten days after receiving a copy of the RJI to ask for a transfer (202.70(e)). A later request is possible only for good cause shown, and the Administrative Judge's decision is final.
6. Transfer out. The assigned Commercial Division justice may send a case that does not qualify to a non-commercial part. A party who objects may write to the Administrative Judge within ten days of receiving notice of the transfer (202.70(f)).
7. Preliminary conference. The conference is held within 45 days of assignment, or as soon after as practicable (Commercial Division Rule 7), and it produces the discovery schedule discussed in what discovery limits apply in the New York Commercial Division.

The rule sets no threshold for a county or district that is not on this list, such as Richmond County. Where a business also faces a property or judgment problem in the same borough, the local court details are covered in the firm's page on foreclosure and judgment defense for Manhattan cases. The Brooklyn equivalent is foreclosure and judgment defense for Brooklyn (Kings County) cases. Queens has its own Commercial Division page on the court system's site, which describes a mediation program; cases may be referred to it by the assigned commercial judge, by the Administrative Judge, or by consent of the parties. For other Queens court matters, see foreclosure and judgment defense for Queens County cases.

Which kinds of business disputes qualify?

The rule lists twelve categories. In plain terms, the Division hears cases whose principal claims or counterclaims involve:

• Business deals gone wrong. Breach of contract or fiduciary duty, fraud, misrepresentation, unfair competition and similar business torts arising out of business dealings, including sales of assets or securities, shareholder and partnership agreements, trade secrets, restrictive covenants and employment agreements, but not claims that mainly involve alleged discrimination (202.70(b)(1)). Proof requirements for one of these claims are covered in what you have to prove to win a fraud claim in a New York business case.
• UCC transactions. Deals governed by the Uniform Commercial Code, except those about individual co-op or condo units (202.70(b)(2)); see the rules that govern a sale of goods between businesses.
• Commercial real property. Transactions involving commercial real property, including Yellowstone injunctions, but not actions for rent only (202.70(b)(3)). The line between commercial and residential property matters in other settings too, as explained in commercial or residential foreclosure: which protections apply.
• Company and finance disputes. Shareholder derivative actions and commercial class actions, both without the money threshold; business transactions with banks and other financial institutions; and the internal affairs of business organizations (202.70(b)(4) to (7)).
• Professional and insurance matters. Malpractice by accountants or actuaries, legal malpractice arising out of commercial representation, insurance coverage for environmental damage or mass torts, and commercial insurance coverage (202.70(b)(8) to (10)).
• Dissolutions and arbitrations. Dissolution of corporations, partnerships, LLCs, LLPs and joint ventures, without the money threshold (202.70(b)(11)), and CPLR Article 75 applications to stay or compel arbitration, or to affirm or disaffirm an award, on any of these subjects (202.70(b)(12)).

Because dissolution cases skip the threshold, a small closely held company can land in the Division even when little money is in dispute; the owner's options are discussed in how to dissolve a New York LLC when the members cannot agree.

Which cases stay out even if the amount is large?

Under 202.70(c), the Division does not hear suits to collect professional fees; personal insurance coverage claims, such as homeowners or auto policies; residential real estate disputes, including landlord and tenant cases, and commercial disputes about rent only; home improvement contracts for one to four family homes or individual apartments; insurer actions to collect premiums or to rescind that involve non-commercial parties; and attorney malpractice outside the commercial category. Judgment enforcement proceedings are also excluded unless the judgment was obtained in the Commercial Division (202.70(c)(5)). Collecting on an ordinary judgment follows the general rules described in what happens after a money judgment is entered in New York.

How is the amount measured when you want an injunction or a declaration?

Many business cases ask a court to stop something rather than pay something, such as enforcing a non-compete. For those claims, the rule measures the threshold by "the value of the object of the action," meaning the greatest of the value of the suit's intended benefit, the value of the right being protected, or the value of the injury being averted (202.70(b)). The value is judged from the RJI addendum and the pleadings at the time assignment is sought. If emergency relief is the first step, the Division's own rule applies: a temporary restraining order will not be issued without notice unless the applicant shows significant prejudice from giving notice (Commercial Division Rule 20). How quickly that relief can come is the subject of how fast you can get a TRO or preliminary injunction in a New York business dispute.

What is different once the case is in the Division?

The ordinary Part 202 court rules still apply, but Commercial Division Rules 7 to 15 replace the general preliminary conference rule and Rules 16 to 24 replace the general motion rule (202.70(g)). Among the practical differences:

• Counsel must appear fully familiar with the case and authorized to make agreements for the client (Rule 1).
• Discovery has default limits, such as 25 interrogatories including subparts and 10 depositions per side of up to 7 hours each, unless changed (Rules 11-a, 11-d).
• Before most motions, counsel must send the court a letter of no more than two pages and attend a pre-motion conference (Rule 24), and briefs are limited to 7,000 words (Rule 17).
• After the note of issue, a mandatory settlement conference applies unless the justice exempts the case for good cause (Rule 30(b)).
• Parties can agree in writing to accelerated adjudication, under which the case must be ready for trial within nine months of the RJI, in exchange for waivers that include jury trial and punitive damages (Rule 9).

Contracts can also choose the forum in advance. The rule allows parties to consent to the Division's exclusive jurisdiction in their contract, or to the Division or the federal courts in New York, subject to the jurisdictional requirements of each court (202.70(d)(2)). Whether federal court is the better fit is compared in federal court or state court for a New York business dispute.

What changes the answer?

• The county. The same claim can meet the Bronx threshold and miss the Manhattan one (202.70(a)).
• The principal claims. The test looks at what the principal claims and counterclaims involve, not at every claim in the case (202.70(b)).
• The relief sought. Equitable and declaratory claims are valued by the object of the action (202.70(b)).
• An exclusion. Rent-only, residential and fee collection cases stay out regardless of size (202.70(c)).
• Timing. The 90-day RJI window and the ten-day transfer letter both run from specific events (202.70(d)(1), (e)).
• A contract clause. A forum or accelerated adjudication clause can shape where and how fast the case proceeds (202.70(d)(2); Rule 9).
• A foreign arbitration seat. The threshold does not apply to Article 75 applications where the arbitration is to be heard outside the United States (202.70(b)(12)).

For example: counting toward the Brooklyn threshold

Common mistakes

• Counting fees and interest. Punitive damages, interest, costs, disbursements and counsel fees do not count toward the threshold (202.70(a)).
• Letting the 90 days pass. Failing to file a commercial RJI within 90 days after service of the complaint generally bars a later request, absent good cause (202.70(d)(1), (e)).
• Ignoring the other side's RJI. A defendant who wants the Division has ten days after receiving a non-commercial RJI to write to the Administrative Judge (202.70(e)).
• Assuming Staten Island has a Division. Richmond County is not among the locations listed in 202.70(a).
• Treating a rent dispute as commercial. Commercial real estate cases about the payment of rent only are excluded (202.70(c)(3)).
• Sending a lawyer who cannot commit. Counsel without knowledge of the case and authority to agree may be treated as in default (Rule 1).

What to do this week

1. Note the date the complaint was served; the 90-day RJI window runs from service.
2. List each claim and counterclaim and the amount sought, separating principal from interest, fees and punitive damages.
3. For an injunction or declaration, write down the value of the benefit sought, the right protected and the harm avoided.
4. Check the contract for a forum clause, a choice of law clause or an accelerated adjudication clause.
5. If an RJI has been filed, check whether it was marked commercial and when you received it.

Frequently asked questions

Is the Commercial Division a different court from the Supreme Court?

No. It is part of the New York State Supreme Court, and the CPLR still governs. What changes is the set of practice rules: the Division's Rules 7 to 15 and 16 to 24 replace the general preliminary conference and motion rules, while the rest of Part 202 continues to apply (202.70(g)).

Is there a Commercial Division for Staten Island cases?

Richmond County is not one of the counties or districts listed in 202.70(a), so the rule sets no Commercial Division threshold there. A business case filed in Richmond County proceeds under the general Supreme Court rules.

Can a defendant ask for the Commercial Division?

Yes. The rule lets any party file the commercial RJI within 90 days following service of the complaint (202.70(d)(1)). If the plaintiff filed an RJI without the commercial designation, the defendant can apply by letter to the Administrative Judge within ten days of receiving a copy (202.70(e)).

Does a contract clause choosing the Commercial Division settle the question?

Not by itself. The rule honors such a clause only if the case also meets the jurisdictional requirements and a proper RJI is filed (202.70(d)(2)). The Division's rules include sample forum and choice of law clauses in Appendices C and D.

Can a business partner's buyout or dissolution case go to the Division?

Dissolution of corporations, partnerships, LLCs, LLPs and joint ventures is heard without regard to the money threshold (202.70(b)(11)), and internal affairs disputes are also listed (202.70(b)(7)). How a minority owner can raise these issues is covered in whether a minority shareholder can force a buyout or dissolution in New York.

Does the Division offer mediation?

Yes. At any stage, the court may direct or counsel may seek an uncompensated mediator or neutral evaluator (Rule 3(a)), and counsel must certify at conferences whether the client is willing to mediate (Rule 10).

How long do I have to bring a business claim in the first place?

The Commercial Division rules do not change the statutes of limitations. Those deadlines come from the CPLR and the Uniform Commercial Code and depend on the claim; see how long you have to sue for breach of contract, fraud, or a sale of goods in New York.