What's happening
This bill voids contract clauses that restrict venue for consumer goods disputes and requires such cases to be heard where the consumer lives.
Why it matters
Empowers consumers. by ensuring they cannot be forced to resolve disputes in inconvenient or distant locations, making it easier and less costly for individuals to pursue claims related to consumer goods.
Levels the playing field. between consumers and businesses, as companies can no longer use fine-print venue clauses to discourage or deter consumers from seeking legal recourse or arbitration.
Clarifies the law. by explicitly defining "consumer goods" and stating that only venue-related contract clauses are voided—other contract terms remain valid, minimizing unintended impacts on broader business practices.
Applies broadly. to both court cases and arbitration proceedings, closing a loophole where companies might otherwise shift disputes to private arbitration in faraway venues.
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Who cares
Consumers buying or leasing household goods and services
The bill would void contract clauses restricting where claims may be heard and require trials or arbitrations to take place in the consumer’s county of residence.
Retailers, lessors and consumer service providers
They could no longer rely on contractual clauses designating or limiting venue for disputes involving personal, family or household purchases.
Consumer attorneys and arbitration providers
They would need to apply the new venue rules to actions and arbitration proceedings commenced on or after the bill’s effective date.
Headline styles
Ban Restricted Lawsuit Locations
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Consumers Sue Locally
Assembly Floor Calendar · Sponsor Helene Weinstein
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1533
2017-2018 Regular Sessions
IN SENATE
January 10, 2017
Introduced by Sen. AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to claims relating to consumer goods
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 501 of the civil practice law and rules, as amended by chapter 532 of the laws of 1963, is amended to read as follows:
§ 501. Contractual provisions fixing venue. Subject to the provisions of subdivision two of section [510] five hundred ten and subdivision three of section five hundred fourteen of this article, written agreement fixing place of trial, made before an action is commenced, shall be enforced upon a motion for change of place of trial.
§ 2. The civil practice law and rules is amended by adding a new section 514 to read as follows:
§ 514. Actions relating to consumer goods. 1. For the purposes of this section, "consumer goods" shall mean goods, wares, paid merchandise or services purchased or paid for by a consumer, the intended use or benefit of which is intended for the personal, family or household purposes of such consumer.
2. In any contract involving the sale, lease or otherwise providing of consumer goods, any portion of the contract or any clause which purports to designate, restrict, or limit the venue in which a claim shall be adjudicated or arbitrated shall be deemed void as against public policy. Nothing in this section shall be deemed to affect the validity of any other aspect of a contract.
3. In any action or arbitration involving the sale, lease or otherwise providing of consumer goods, in addition to the venue provisions contained within section five hundred three of this article, the place of trial or arbitration shall take place in the county where the consumer resides.
§ 3. This act shall take effect on the thirtieth day after it shall have become a law, and shall apply to all actions and arbitration proceedings which have not been commenced prior to such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01277-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the civil practice law and rules, in relation to claims relating to consumer goods
Purpose of bill
This bill would proscribe venue limitations in contracts relating to the adjudication or arbitration of disputes concerning consumer goods.
Summary of provisions of bill
This bill defines consumer goods in the same manner as exists in current law, e.g. General Business Law, § 399-C, and states that contracts purporting to limit or set venue for the adjudication or arbitration of disputes concerning same are deemed void. The bill allows for the place of trial to be designated in either the county of the consumer's residence, in addition to other venue provisions contained in law.
Justification
All too often, consumers who seek judicial or arbitral relief concerning contracts involving consumer goods are limited by contractual boilerplate which purports to set venue in far flung locations which are inconvenient or impossible for consumers to attend. E.g. Karlsberg v. Hunter Mtn. Ski Bowl, Inc., 131 AD 3d 1121 (2nd Dept 2015). While parties to arms-length transactions should be free to fashion venue requirements to their satisfaction, the inequities involved in consumer transactions warrant a legislative determination that boilerplate clauses which create hardship to consumers should not be enforced.
Legislative history
2016: A.9995 (Weinstein)
Fiscal implications for state and local governments
None.
Effective date
The thirtieth day after it shall have become a law, and shall apply to all actions and arbitration proceedings which have not been commenced prior to such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.