Relates to the territorial definition of a commercial claim

1 Co-sponsor

• Ruth Hassell-Thompson

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.