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Kings County - Brooklyn


Former Guidelines for Assignment of Cases to Kings County Supreme Court Commercial Division


Note: What Follows Are Former Guidelines of The Commercial Division In Kings County; They Are No Longer In Effect.


These guidelines apply to RJIs filed on commercial cases on or after December 2, 2002.

In general, the Commercial Division of the Kings County Supreme Court will entertain commercial and business disputes in which a party seeks compensatory damages totaling $50,000 or more (exclusive of punitive damages, interests, costs and attorney fees).

A Request for Judicial Intervention which is marked "Commercial" and is accompanied by a "Commercial Division Certification" identifying the nature of the lawsuit and the reason for the assignment to the Commercial Division will initially be assigned to a Commercial Division Part.  The Certification requires verification by counsel that the case meets the eligibility requirements set forth in these Rules.  A complete set of pleadings must accompany such certification and be annexed to the RJI.

Justices of the Commercial Division are empowered to transfer cases out of the Commercial Division which in their judgment do not fall within the eligibility requirements set forth in these Rules.  A Commercial Division Judge may order a transfer notwithstanding that a party has described the case as commercial.  An Order will be issued stating the reason for such transfer.  A party claiming to be aggrieved by such transfer may seek review by letter application to the Administrative Judge (two pages maximum including a copy of the Commercial Division Justice's Order with a copy to all parties).  If such application to the Administrative Judge is not made within ten days of notification of the transfer order or the denial of transfer, the decision of the Commercial Division Judge becomes final.  The order of the Administrative Judge is final and subject to no further review or appeal.

A case already pending in a non-commercial IAS part may be transferred into the Commercial Division upon application to the assigned IAS Judge and with the consent of a Commercial Division Judge within three months of the initial RJI.  Any objections to such transfer must be raised before the IAS Judge who will rule thereon in consultation with a Commercial Division Justice or the Administrative Judge.  Review of the IAS Judge's decision may be obtained by application to the Administrative Judge in writing on notice to all parties within ten days of entry.  Thereafter, the decision of the IAS Judge becomes final.

Business and Commercial actions in which the principal claims involve the following matters will be presumptively retained in the Commercial Division provided that the monetary threshold has been met:

Business Corporation Law
  1. Shareholder derivative actions.
  2. Dissolution or liquidation of corporations, professional corporations and limited liability corporations.
  3. Actions involving liability and indemnity of corporate directors and officers.
  4. Actions involving the internal affairs of corporations, such as voting and inspection rights of shareholders or directors, authorization of corporate acts or interpretations of articles or by-laws.
  5. Actions involving appointment of a receiver of property of domestic or qualified foreign corporations.
Contract
  1. Breach of contract, fraud or misrepresentation actions involving:
    1. Purchase or sale of securities.
    2. Purchase or sale of the assets of a business or merger, consolidation or recapitalization of a business.
    3. Providing of goods or services by or to a business entity.
    4. Partnership, shareholder or joint venture agreements.
    5. Franchise, distribution or licensing agreements.
Partnership Law
  1. Actions involving general and limited partnerships.
Uniform Commercial Code
  1. Transactions governed by the Uniform Commercial Code (exclusive of those concerning individual co-op units).
Other Commercial Matters
  1. Actions involving employment agreements, trade secrets, restrictive covenants or employee incentive or retirement plans in which business or commercial issues predominate.
  2. Declaratory judgment actions and third party indemnification claims by or against insurance companies where the underlying cause of action is contract in nature or would otherwise fall within these guidelines.
  3. Commercial class actions.
  4. Professional malpractice involving commercial or business matters.
  5. Complicated environmental insurance litigation.
  6. Commercial bank transactions.

The following will presumptively be transferred out of the Division even if the monetary threshold is met:

  1. Suits to set professional fees.
  2. Attorney or medical malpractice actions.
  3. Real estate foreclosures even if they involve commercial buildings and commercial parties.
  4. Discharge, modification, or foreclosure of mechanics' or other liens.
  5. Discrimination cases except when part of or under the terms of a contract.
  6. Consumer collection matters.
  7. Products liability claims including claims based upon warranty of merchantability and/or fitness for a particular use.
  8. Proceedings to enforce a judgment regardless of the nature of the underlying dispute.
  9. Cases seeking a declaratory judgment as to insurance coverage for a personal injury or property damage action.
  10. Landlord tenant matters, Yellowstone Injunctions, purchase, sale or lease of, or security interest in commercial real property or personal property, and other real estate disputes.
  11. First party insurance claims and actions by insurers to collect premiums or rescind policies.

[Revised April 1, 2004, by replacement of previous third through sixth (unnumbered) paragraphs with current third through fifth paragraphs.]

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