If you own a business on Long Island, there is a good chance you will face a lawsuit at some point. However, it’s important to understand that since these cases involve highly nuanced business principles and intricate legal issues, they are handled differently than other civil matters — and are even heard in a separate forum. The Commercial Division is a specific court that deals with a broad scope of business matters, and it’s essential for business owners to know the basics about how to navigate it.
What is the Commercial Division?
The Commercial Division is a specialized forum within the New York State Supreme Court system that handles business-related disputes. There are specific rules and procedures associated with these courts in each county that differ from other civil litigation matters. The commercial courts are meant to streamline the litigation process for business conflicts and help the parties resolve disputes more efficiently.
Cases Heard by the Commercial Division
There are a few ways a business dispute may be assigned to the Commercial Division. For instance, any party may file a “Request for Judicial Intervention (RJI)” with the Commercial Division in the applicable county within 90 days after the initial complaint has been served. The parties may also consent to have their case heard in this court by including a forum selection clause in the contract that was executed. However, these courts will only hear specific types of business disputes that meet a certain amount in dispute.
Cases commonly handled in the Commercial Division can include the following:
- Business torts
- Breach of contract matters
- Shareholder actions
- Partnership disputes
- Business fraud and misrepresentation
- Non-compete agreement issues
- Business dissolution matters
- Breach of fiduciary duty
Other matters that can be heard by the Commercial Division include transactions governed by the Uniform Commercial Code, matters involving the internal affairs of business organizations, commercial insurance coverage matters, business transactions involving dealings with financial institutions, and commercial real estate issues.
Regardless of whether the applicable monetary threshold to pursue a case in a particular county is met, the Commercial Division courts will not hear lawsuits to collect professional fees, residential real estate disputes, commercial real estate disputes that only involve the payment of rent, matters involving home improvement contracts, judgment enforcement matters, and any non-commercial matter. If a case does not fall within the jurisdiction of the Commercial Division, the justice assigned has the discretion to transfer the matter to a non-commercial part of the court.
Litigation in the Commercial Division
Being adequately prepared for litigation in the Commercial Division is key to resolving your dispute efficiently, cost-effectively, and successfully. To build a strong foundation for your case, it’s vital to preserve documents, conduct comprehensive discovery, and thoroughly prepare witnesses. It’s crucial to work with an experienced business attorney who can advise you regarding the steps to take in your case, help you develop a solid strategy, and guide you through the litigation process.
As with any other civil matter, a commercial case is commenced by filing a summons and complaint and serving it on the appropriate party. Once the pleadings have been served, the discovery process can begin. Since the discovery process is often lengthy in a commercial case, strict deadlines are enforced. Parties in a commercial matter can also expect to engage in extensive motion practice.
The Commercial Division encourages the use of alternative dispute resolution to settle business disputes outside the courtroom. However, cases that cannot be settled between the parties will proceed to trial. When a case goes to trial, it is presided over by a judge with extensive knowledge of business law. A trial in the Commercial Division can either be a bench trial — and a judge would decide the case — or a jury trial.
Contact an Experienced Long Island Business Attorney
If you own a business on Long Island, a diligent attorney can best assist you with any commercial matters you might face. At Barnes & Barnes, P.C., we are dedicated to handling a wide range of business matters, including those involving litigation. Contact us at (516) 673-0674 to schedule a consultation.
