What's happening
This bill raises the small claims court monetary limit in New York from $5,000 (or $3,000 in justice courts) to $10,000.
Why it matters
Broadens access to small claims court. By raising the monetary limit, more individuals and small businesses with moderate-sized disputes can use the simpler, faster, and less expensive small claims process instead of regular civil court.
Reduces legal costs and complexity. Higher-value cases that previously required formal legal representation and complex procedures can now be resolved through the small claims system, which is designed to be user-friendly and often does not require lawyers.
May relieve congestion in higher courts. Allowing more cases to be handled in small claims courts could help reduce the caseload in higher civil courts, potentially speeding up the resolution of all types of civil disputes.
Significant increase for justice courts. The jump from $3,000 to $10,000 in justice courts (used in towns and villages) is especially notable, possibly increasing rural and suburban residents’ access to meaningful legal remedies for larger disputes.
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Headline styles
Raise Small Claims Limit
Plain English, a few words. Used as the page title.
Sponsors
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.
Raise Small Claims Limit
In Senate Committee · Judiciary · Sponsor Michael Gianaris
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4360
2019-2020 Regular Sessions
IN ASSEMBLY
February 4, 2019
Introduced by M. of A. DenDEKKER -- read once and referred to the Committee on Judiciary
AN ACT to amend the New York city civil court act, the uniform district court act, the uniform city court act, and the uniform justice court act, in relation to civil jurisdictional limits
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1801 of the New York city civil court act, as amended by chapter 65 of the laws of 2010, is amended to read as follows:
§ 1801. Small claims defined. The term "small claim" or "small claims" as used in this act shall mean and include any cause of action for money only not in excess of [five] ten thousand dollars exclusive of interest and costs, or any action commenced by a party aggrieved by an arbitration award rendered pursuant to part 137 of the rules of the chief administrator of the courts (22 NYCRR Part 137) in which the amount in dispute does not exceed [five] ten thousand dollars, provided that the defendant either resides, or has an office for the transaction of business or a regular employment, within the city of New York.
§ 2. Section 1801 of the uniform district court act, as amended by chapter 65 of the laws of 2010, is amended to read as follows: § 1801. Small claims defined.
The term "small claim" or "small claims" as used in this act shall mean and include any cause of action for money only not in excess of [five] ten thousand dollars exclusive of interest and costs, or any action commenced by a party aggrieved by an arbitration award rendered pursuant to part one hundred thirty-seven of the rules of the chief administrator of the courts (22 NYCRR Part 137) in which the amount in dispute does not exceed [five] ten thousand dollars, provided that the defendant either resides, or has an office for the transaction of busi-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04059-01-9
A. 4360 2
ness or a regular employment, within a district of the court in the county.
§ 3. Section 1801 of the uniform city court act, as amended by chapter 65 of the laws of 2010, is amended to read as follows: § 1801. Small claims defined.
The term "small claim" or "small claims" as used in this act shall mean and include any cause of action for money only not in excess of [five] ten thousand dollars exclusive of interest and costs, or any action commenced by a party aggrieved by an arbitration award rendered pursuant to part 137 of the rules of the chief administrator of the courts (22 NYCRR Part 137) in which the amount in dispute does not exceed [$5,000,] ten thousand dollars provided that the defendant either resides, or has an office for the transaction of business or a regular employment, within the county.
§ 4. Section 1801 of the uniform justice court act, as amended by chapter 76 of the laws of 1994, is amended to read as follows: § 1801. Small claims defined.
The term "small claim" or "small claims" as used in this act shall mean and include any cause of action for money only not in excess of [three] ten thousand dollars exclusive of interest and costs, provided that the defendant either resides, or has an office for the transaction of business or a regular employment, within the municipality where the court is located. However, where a judge of the county court, pursuant to subdivision (g) of section three hundred twenty-five of the civil practice law and rules, transfers a small claim from the town or village court having jurisdiction over the matter to another town or village court within the same county, the court to which it is transferred shall have jurisdiction to determine the claim.
§ 5. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to actions or proceedings filed on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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