new york state assignment of claims act

When Assigning the Right to Pursue Relief, Always Remember to Assign Title to, Or Ownership in, The Claim

• Posted on: Oct 4 2016

Whether a party has standing to bring a lawsuit is often considered through the constitutional lens of justiciability – that is, whether there is a “case or controversy” between the plaintiff and the defendant “within the meaning of Art. III.” Warth v. Seldin, 422 U.S. 490, 498 (1975). To have Article III standing, “the plaintiff [must have] ‘alleged such a personal stake in the outcome of the controversy’ as to warrant [its] invocation of federal-court jurisdiction and to justify exercise of the court’s remedial powers on [its] behalf.” Id. at 498–99 (quoting Baker v. Carr , 369 U.S. 186, 204 (1962)).

To show a personal stake in the litigation, the plaintiff must establish three things: First, he/she has sustained an “injury in fact” that is both “concrete and particularized” and “actual or imminent.” Lujan v. Defenders of Wildlife , 504 U.S. 555, 560 (1992) (internal quotation marks omitted). Second, the injury has to be caused in some way by the defendant’s action or omission. Id . Finally, a favorable resolution of the case is “likely” to redress the injury. Id . at 561.

When a person or entity receives an assignment of claims, the question becomes whether he/she can show a personal stake in the outcome of the litigation, i.e. , a case and controversy “of the sort traditionally amenable to, and resolved by, the judicial process.’” Sprint Commc’ns Co., L.P. v. APCC Servs., Inc., 554 U.S. 269, 285 (2008) (quoting Vt. Agency of Natural Res. v. United States ex rel. Stevens, 529 U.S. 765, 777–78 (2000)).

To assign a claim effectively, the claim’s owner “must manifest an intention to make the assignee the owner of the claim.” Advanced Magnetics, Inc. v. Bayfront Partners, Inc. , 106 F.3d 11, 17 (2d Cir. 1997) (internal quotation marks and brackets omitted). A would-be assignor need not use any particular language to validly assign its claim “so long as the language manifests [the assignor’s] intention to transfer at least title or ownership , i.e., to accomplish ‘a completed transfer of the entire interest of the assignor in the particular subject of assignment.’” Id. (emphasis added) (citations omitted). An assignor’s grant of, for example, “‘the power to commence and prosecute to final consummation or compromise any suits, actions or proceedings,’” id. at 18 (quoting agreements that were the subject of that appeal), may validly create a power of attorney, but that language would not validly assign a claim, because it does “not purport to transfer title or ownership” of one. Id.

On September 15, 2016, the New York Appellate Division, First Department, issued a decision addressing the foregoing principles holding that one of the plaintiffs lacked standing to assert claims because the assignment of the right to pursue remedies did not constitute the assignment of claims.  Cortlandt St. Recovery Corp. v. Hellas Telecom., S.à.r.l. , 2016 NY Slip Op. 06051.

BACKGROUND :

Cortlandt involved four related actions in which the plaintiffs – Cortlandt Street Recovery Corp. (“Cortlandt”), an assignee for collection, and Wilmington Trust Co. (“WTC”), an indenture trustee – sought payment of the principal and interest on notes issued in public offerings. Each action alleged that Hellas Telecommunications, S.a.r.l. and its affiliated entities, the issuer and guarantor of the notes, transferred the proceeds of the notes by means of fraudulent conveyances to two private equity firms, Apax Partners, LLP/TPG Capital, L.P. – the other defendants named in the actions.

The defendants moved to dismiss the actions on numerous grounds, including that Cortlandt, as the assignee for collection, lacked standing to pursue the actions. To cure the claimed standing defect, Cortlandt and WTC moved to amend the complaints to add SPQR Capital (Cayman) Ltd. (“SPQR”), the assignor of note interests to Cortlandt, as a plaintiff. The plaintiffs alleged that, inter alia , SPQR entered into an addendum to the assignment with Cortlandt pursuant to which Cortlandt received “all right, title, and interest” in the notes.

The Motion Court granted the motions to dismiss, holding that, among other things, Cortlandt lacked standing to maintain the actions and that, although the standing defect was not jurisdictional and could be cured, the plaintiffs failed to cure the defect in the proposed amended complaint. Cortlandt St. Recovery Corp. v. Hellas Telecom., S.à.r.l. , 47 Misc. 3d 544 (Sup. Ct., N.Y. Cnty. 2014).

The Motion Court’s Ruling

As an initial matter, the Motion Court cited to the reasoning of the court in Cortlandt Street Recovery Corp. v. Deutsche Bank AG, London Branch , No. 12 Civ. 9351 (JPO), 2013 WL 3762882, 2013 US Dist. LEXIS 100741 (S.D.N.Y. July 18, 2013) (the “SDNY Action”), a related action that was dismissed on standing grounds.  The complaint in the SDNY Action, like the complaints before the Motion Court, alleged that Cortlandt was the assignee of the notes with a “right to collect” the principal and interest due on the notes. As evidence of these rights, Cortlandt produced an assignment, similar to the ones in the New York Supreme Court actions, which provided that as the assignee with the right to collect, Cortlandt could collect the principal and interest due on the notes and pursue all remedies with respect thereto. In dismissing the SDNY Action, Judge Oetken found that the complaint did not allege, and the assignment did not provide, that “title to or ownership of the claims has been assigned to Cortlandt.” 2013 WL 3762882, at *2, 2013 US Dist. LEXIS 100741, at *7. The court also found that the grant of a power of attorney (that is, the power to sue on and collect on a claim) was “not the equivalent of an assignment of ownership” of a claim. 2013 WL 3762882 at *1, 2013 US Dist. LEXIS 100741 at *5. Consequently, because the assignment did not transfer title or ownership of the claim to Cortlandt, there was no case or controversy for the court to decide ( i.e. , Cortlandt could not prove that it had an interest in the outcome of the litigation).

The Motion Court “concur[red] with” Judge Oeken’s decision, holding that “the assignments to Cortlandt … were assignments of a right of collection, not of title to the claims, and are accordingly insufficient as a matter of law to confer standing upon Cortlandt.”  In so holding, the Motion Court observed that although New York does not have an analogue to Article III, it is nevertheless analogous in its requirement that a plaintiff have a stake in the outcome of the litigation:

New York does not have an analogue to article III. However, the New York standards for standing are analogous, as New York requires “[t]he existence of an injury in fact—an actual legal stake in the matter being adjudicated.”

Under long-standing New York law, an assignee is the “real party in interest” where the “title to the specific claim” is passed to the assignee, even if the assignee may ultimately be liable to another for the amounts collected.

Citations omitted.

Based upon the foregoing, the Motion Court found that Cortlandt lacked standing to pursue the actions.

Cortlandt appealed the dismissal. With regard to the Motion Court’s dismissal of Cortlandt on standing grounds, the First Department affirmed the Motion Court’s ruling, holding:

The [IAS] court correctly found that plaintiff Cortlandt Street Recovery Corp. lacks standing to bring the claims in Index Nos. 651693/10 and 653357/11 because, while the assignments to Cortlandt for the PIK notes granted it “full rights to collect amounts of principal and interest due on the Notes, and to pursue all remedies,” they did not transfer “title or ownership” of the claims.

The Takeaway

Cortlandt limits the ability of an assignee to pursue a lawsuit when the assignee has no direct interest in the outcome of the litigation. By requiring an assignee to have legal title to, or an ownership interest in, the claim, the Court made clear that only a valid assignment of a claim will suffice to fulfill the injury-in-fact requirement. Cortlandt also makes clear that a power of attorney permitting another to conduct litigation on behalf of others as their attorney-in-fact is not a valid assignment and does not confer a legal title to the claims it brings. Therefore, as the title of this article warns: when assigning the right to pursue relief, always remember to assign title to, or ownership in, the claim.

Tagged with: Business Law

N.Y. Debtor & Creditor Law Section 3 Requisites of general assignment

Source: Section 3 — Requisites of general assignment , https://www.­nysenate.­gov/legislation/laws/DCD/3 (updated Sep. 22, 2014; accessed Sep. 14, 2024).

Accessed: Sep. 14, 2024

Last modified: Sep. 22, 2014

§ 3’s source at nysenate​.gov

Blank Outline Levels

The legislature occasionally skips outline levels. For example:

In this example, (3) , (4) , and (4)(a) are all outline levels, but (4) was omitted by its authors. It's only implied. This presents an interesting challenge when laying out the text. We've decided to display a blank section with this note, in order to aide readability.

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New York’s Court Of Claims, A Court Like No Other!

Feb 11, 2008 | Injury Law

What do you think of when someone says “trial”? A brief and unofficial survey of some non-lawyer friends resulted in the word “jury” cropping up just over 80% of the time. A trial by jury is one of the most time honored traditions of our system of jurisprudence. Our right to a trial by a jury of our peers before our liberty or property can be taken from us is a cornerstone of our constitution, born out of secret tribunals in England’s medieval times, where courts established by and for the ruling class were used to keep the masses in their place. Trials by a jury are meant to be the great equalizer, to ensure that everyone, no matter their place in society, can obtain a fair and impartial verdict. So why is it, then, that we lose this indelible constitutional right when we sue the State of New York?

Under New York State law, any claim against the State of New York can only be brought in a special court called the Court of Claims. The Court of Claims is a court of limited jurisdiction, which only presides over cases against the State. In order to preserve your right to sue, a Notice of Intent to make a claim must be filed with the Court of Claims within 90 days of the act or occurence which forms the basis of the claim. Failure to timely file this Notice of Intent likely means that you will forever be barred from bringing your claim, even though many people may not realize they had a claim to bring until well after the 90 days has passed. There are circumtances where a Notice of Intent can be filed late, however, so prompt consultation with an attorney experienced in bringing claims against the State is HIGHLY recommended.

The biggest difference between the Court of Claims and traditional courts, however, is that there is no right to a jury trial in the Court of Claims. It isn’t even an option. Instead, trials are conducted before a judge appointed by the State (yes the same State that is the defendant in the case) and defended by the Attorney General’s Office. The Judge presides over the discovery process, determines motions that will limit the admissable evidence at trial, and then serves as the finder of fact at trial, where they are expected to disregard the knowledge of the case they have acquired over the preceding years, and base their verdict solely on the admissable evidence. In a strange twist, the judge who presides over the trial doesn’t have the last say on the verdict. Once the trial judge writes a proposed decision, that decision is submitted to a secret panel that reviews the evidence and testimony and approves the final version of the decision. That process takes place in secret, without the right of the Claimant’s attorney to argue the evidence or be heard.

So how can this happen? That is a very good question with a very convoluted answer. In general, the states and the federal government enjoy what is called Sovereign Immunity. Sovereign Immunity is founded upon the ancient principle that “the King can do no wrong”. In the present day, this principle bars holding the government or its political subdivisions liable for the torts of its officers or agents unless immunity is waived. The federal government has waived its immunity, and permits suits against it pursuant to the Federal Tort Claims Act. New York, as well as most every other state, has also waived their Soveregn Immunity to one extent or another.

Since every state is free to determine how and to what extent they will waive their immunity, we are left with the Court of Claims in New York. While it may be little more than a modern day Star Chamber, it is the only way to even attempt to hold the State of New York liable for its actions.

Thanks for reading,

ZiffLaw Attorney, Esq.

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31 U.S. Code § 3727 - Assignments of claims

In subsection (a)(1), the words “or share thereof” and “whether absolute or conditional, and whatever may be the consideration therefor” are omitted as surplus. In clause (2), the word “authorization” is substituted for “powers of attorney, orders, or other authorities” to eliminate unnecessary words.

In subsections (b) and (c), the word “official” is substituted for “officer” for consistency in the revised title and with other titles of the United States Code.

In subsection (b), the words “Except as hereinafter provided” are omitted as unnecessary. The words “read and” are omitted as surplus. The words “to the person acknowledging the same” are omitted as unnecessary. The text of 31:203(1st par. last sentence) is omitted as superseded by 39:410. The words “Notwithstanding any law to the contrary governing the validity of assignments ” and the text of 31:203(last par.) are omitted as unnecessary.

In subsection (c), before clause (1), the words “bank, trust company, or other . . . including any Federal lending agency” are omitted as surplus. The words “of money due or to become due under a contract providing for payments totaling at least $1,000” are substituted for “in any case in which the moneys due or to become due from the United States or from any agency or department thereof, under a contract providing for payments aggregating $1,000 or more” to eliminate unnecessary words. The text of 31:203(2d par. proviso cl. 1) is omitted as executed. In clause (1), the words “in the case of any contract entered into after October 9, 1940 ” are omitted as executed. In clause (2)(A), the words “payable under such contract” are omitted as surplus. In clause (3), the words “true” and “instrument of” are omitted as surplus. The words “department or” are omitted because of the restatement. The words “if any” and “to make payment” are omitted as surplus.

In subsection (d), before clause (1), the words “During a war or national emergency proclaimed by the President or declared by law and ended by proclamation or law” are substituted for “in time of war or national emergency proclaimed by the President (including the national emergency proclaimed December 16, 1950 ) or by Act or joint resolution of the Congress and until such war or national emergency has been terminated in such manner” to eliminate unnecessary words. The words “ Department of Energy (when carrying out duties and powers formerly carried out by the Atomic Energy Commission)” are substituted for “Atomic Energy Commission” (which was reconstituted as the Energy Research and Development Administration by 42:5813 and 5814) because of 42:7151(a) and 7293. The words “other department or . . . of the United States . . . except any such contract under which full payment has been made” and “of any moneys due or to become due under such contract” before “shall not be subject” are omitted as surplus. The words “A payment subsequently due under the contract (even after the war or emergency is ended) shall be paid to the assignee without” are substituted for “and if such provision or one to the same general effect has been at any time heretofore or is hereafter included or inserted in any such contract, payments to be made thereafter to an assignee of any moneys due or to become due under such contract, whether during or after such war or emergency . . . hereafter” to eliminate unnecessary words. The words “of any nature” are omitted as surplus. In clause (1), the words “or any department or agency thereof” are omitted as unnecessary. In clause (2), the words “under any renegotiation statute or under any statutory renegotiation article in the contract” are omitted as surplus.

Subsection (e)(1) is substituted for 31:203(4th par.) to eliminate unnecessary words.

In subsection (e)(2), the words “person receiving an amount under an assignment or allotment” are substituted for “assignees, transferees, or allottees” for clarity and consistency. The words “or to others for them” and “with respect to such assignments , transfers, or allotments or the use of such moneys” are omitted as surplus. The words “person making the assignment or allotment” are substituted for “assignors, transferors, or allotters” for clarity and consistency.

When Claims Travel With the Debt: A Review of NY GOL §13-107

A recent case in New York State Supreme Court,  One Williams Street Capital Management LP v. U.S. Education Loan Trust IV, LLC  (Sup. Ct. N.Y. Cty. May 15, 2017), affords a useful opportunity to review the applicability and scope of §13-107 of the New York General Obligations Law, which provides that a transfer of a bond “vests in the transferee all claims or demands of the transferrer.” The court observed that §13-107 extends to all claims, whether in contract or in tort, including fraud. However, §13-107 is limited in its scope to claims against obligors and certain other direct actors with respect to the transferred instrument. Claims against ancillary parties, such as a placement agent or the rating agencies, must be transferred, if at all, in accordance with the norms of otherwise applicable common law. Persons who engage in the purchase or sale of debt instruments should therefore carefully consider whether they intend claims to be transferred or retained, and document their trade accordingly. Facts The plaintiffs in the case were former holders of $10 million worth of notes backed by government-guaranteed student loans. The notes were originally issued in October 2007, and in 2008 were converted into “auction rate notes.” Accordingly, defendant U.S. Education Loan Trust IV, LLC (ELT), the issuer of the notes, and defendant Bank of New York Mellon (BNYM), the trustee and the auction agent for the notes, were required to hold monthly auctions for the notes. When ELT and BNYM failed to hold the auctions, the notes were automatically converted to interest-bearing notes at the rate of one month LIBOR plus 2.50%, until redeemed or until a successful auction was held.  At a certain point, the defendant sponsors of ELT learned from BNYM that auctions were shortly to begin, with the result that the interest rate on the notes would be reset. The plaintiffs alleged that this was concealed from the plaintiffs and non-party Merrill Lynch, Pierce, Fenner & Smith, who together owned the entire issue of the notes. An auction did in fact occur, after which defendants took position that the interest rate on the notes had been effectively reduced to zero. Plaintiffs commenced their action in June 2012, and after some legal skirmishing over the years, in January 2016, they and non-party Merrill Lynch sold all of their notes at auction. Then, in June 2016, the plaintiffs amended their complaint to allege a number of causes of actions against the defendants, including, among others, fraud against ELT and BNYM, aiding and abetting fraud against BNYM, and fraudulent conveyance against ELT. Defendants BNYM and ELT moved to dismiss the claims against them, arguing lack of standing under the New York General Obligations Law §13-107. Section 13-107 Section 13-107(1) of the New York General Obligations Law provides as follows:

The statute was definitively interpreted by the New York Court of Appeals in  Bluebird Partners, L.P., v. First Fidelity Bank, N.A. , 97 N.Y.2d 456 (2002). In that case, plaintiff Bluebird Partners was seeking to hold to account the trustees under an indenture governing two tranches of equipment notes issued by Continental Airlines. The notes were issued in March 1987, and in December 1990 Continental filed for Chapter 11 protection. A fund manager, Gabriel Capital, began accumulating the notes in December 1991 and subsequently transferred them to Bluebird Partners, an entity that Gabriel Capital formed for this purpose in January 1994. Bluebird Partners commenced its action in 1997 against the trustees and their respective law firms, asserting that the trustees’ delay in moving for adequate protection and their failure to move to lift the automatic stay constituted a breach of their fiduciary duties. In 2001, the Appellate Division of the New York State Supreme Court dismissed the claim on the grounds that Bluebird Partners was a transferee of the certificates and, under §13-107, Bluebird Partners was required to demonstrate its own injury in order to recover damages. Because Bluebird failed to do so, it could not sue the trustees. The Court of Appeals reversed. As interpreted by the Court of Appeals, “the wording of General Obligations Law §13-107 makes it eminently clear that the buyer of a bond receives exactly the same ‘claims or demands’ as a seller held before the transfer.” Because Gabriel Capital had standing to sue the trustees before it transferred the bonds to Bluebird Partners, Bluebird Partners, as buyer, acquired Gabriel Capital’s rights, including its right to sue the trustees. Interestingly, the Court of Appeals left open the question of whether §13-107 should be pre-empted by federal law. In an earlier iteration of this same case played out in federal court,  Bluebird Partners, L.P. v. First Fidelity Bank, N.A. , 85 F.3d 970 (2nd Cir. 1996), the Second Circuit held that Bluebird Partners could not sue the trustees under the Trust Indenture Act (TIA). The court there observed that federal securities law claims are not automatically assigned to subsequent purchasers upon the sale of the security giving rise to the claims. The Second Circuit therefore declined to recognize a rule of automatic assignment of claims under the TIA. The defendants in  Bluebird  pointed to another section of the General Obligations Law, which they maintained mandated deference to the TIA as interpreted by the Second Circuit. Specifically, §13-101(3) of the General Obligations Law provides that “[a]ny claim or demand can be transferred  except … where a transfer thereof is expressly forbidden by … a statute of the United States . …”  (emphasis supplied). The  Bluebird  defendants argued that either §13-101 directs that §13-107 be interpreted to conform to the TIA or alternatively that the TIA pre-empts §13-107. The Court of Appeals remanded the case to consider these arguments. In August 2002, the Appellate Division (297 A.D.2d 223, 746 N.Y.S.2d 475 (1st Dept. 2002)) rejected both of these arguments. It held that the New York legislature charted its own course in the matter of securities laws and rejected the argument that §13-107 conflicted with the federal statute. The distillation of the  Bluebird  decisions is that under §13-107 all claims against an issuer, guarantor, trustee or depositary, not just claims for payment, travel with the corresponding debt. Application in the U.S. Education Loan Trust Case Following the holdings in  Bluebird , the court in the  U.S. Education Loan Trust  case held that the plaintiffs lost their standing to sue on their notes when the notes were transferred. The plaintiffs raised two counterarguments. 

First, they cited to a subsequent Court of Appeals case,  Public School Employees’ Retirement System v. Morgan Stanley & Co. , 25 N.Y.3d 543 (2015), where the court held that claims with respect to certain notes did not travel with the securities. That case, as interpreted in  U.S. Education Loan Trust , provides useful instruction on the limits of §13-107. In  Public School Employees’ Retirement System , a fund had acquired certain notes issued by a structured investment vehicle. The fund then sold the notes to its affiliate, and the affiliate was subsequently merged into a third entity. The issuer of the notes held a significant number of subprime mortgages, and in the financial downturn went into receivership. The transferee holder of the notes sued both Morgan Stanley, as arranger and placement agent of the notes, and the rating agencies for fraud. The question in the case, certified to the New York Court of Appeals by the Second Circuit, was whether an assignment of a fraud claim could be inferred from the facts and circumstances where there was no express language of transfer. The Court of Appeals confirmed that fraud claims are freely assignable in New York but held that in this particular case, the record was devoid of any proof of assignment of the fraud or other tort claims. Following precedent, the Court of Appeals held “where an assignment of fraud or other tort claims is intended in conjunction with the conveyance of a contract or note, there must be some language — although no specific words are required — that evinces that intent and effectuates the transfer of such right.”  The court in  U.S. Education Loan Trust  readily distinguished  Public School Employees’ Retirement System . Section 13-107, the court said, by its terms speaks of claims for damages against a obligor, guarantor, trustee or depositary. The defendants in  Public School Employees’ Retirement System  were ancillary parties — an arranger and rating agencies — to whom §13-107 simply does not apply. While the fraud claims in that case did not automatically travel with the transferred securities, the case had no application to  U.S. Education Loan Trust , where the issuer and the trustee were being sued.

The plaintiffs also maintained that §13-107 applied only to claims on the bonds themselves and not to claims that were merely related to the bonds. The plaintiffs pointed to another subsequent Court of Appeals decision,  Quadrant Structured Products v. Vertin , 23 N.Y.3d 549 (2014), in which the court distinguished between claims on the particular securities and tort claims relating to the securities for purposes of a no-action clause in an indenture. In  U.S. Education Loan Trust , they argued, their claims were not on the notes themselves but in tort for actions that were related to the notes. The court rejected this argument as well and said that Bluebird “made it ‘eminently clear’ that §13-107(1) provides the purchaser has ‘exactly the same claims or demands as the seller had before the transfer’ even if those claims are merely ‘related’ to the bonds at issue.”  Lessons Learned Section 13-107 is a peremptory statute that can work either for or against a bondholder.  Absent express language to the contrary, a transferor loses its claims on the debt once the debt is assigned, and its transferee picks up those claims upon acquiring the securities. This principle applies to all claims on the bonds, whether they are for non-payment or rescission or whether they relate to ancillary wrongs, such as fraud or misrepresentation. But §13-107 has its limitations. It is effective only with respect to claims against a defined set of actors enumerated in the statute — an issuer, a guarantor, a trustee for the bonds or a depositary to whom the bonds are entrusted. It will not work its magic against other persons, such as underwriters or placement agents, who may be intimately connected with the issuance of the bonds but who fall outside the scope of §13-107. It behooves debtholders to understand both the reach and the limitations of this uniquely New York statute. Debtholders should also take to heart the teachings of  Public School Employees’ Retirement System . Tort claims, including claims for fraud, can be assigned under New York law. However, an assignment will not be inferred, and must be made by express language. Where §13-107 does not apply, and a purchaser intends to acquire tort claims associated with the debt, it should exercise the necessary care to do so explicitly. Similarly, as articulated by the Second Circuit in its 1996  Bluebird  decision, federal securities claims will not automatically travel with the debt.   In documenting the transfer of bonds and like instruments, purchasers and sellers should carefully consider the types of claims that may arise under the instruments they are trading, and assure that their documentation reflects their intention of whether particular claims should be assigned or retained.

Authors and Editors

Uniform Rules for N.Y. State Trial Courts

Part 210. uniform civil rules for the city courts outside the city of new york.

210.1 Application of Part; waiver; additional rules; UCCA; 210.2 Terms and parts of court 210.3 Individual assignment system; structure 210.4 Papers filed in court; index number; form; label 210.5 Submission of papers to judge  210.6 Summons 210.7 Pleadings 210.8 Calendaring of motions; uniform notice of motion form 210.9 Motion procedure 210.10 Preliminary conference 210.11 [Reserved] 210.12 Videotape recording of depositions 210.13 Exchange of medical reports in personal injury . . . 210.14 Defaults 210.14-a Proof of Default Judgment in Consumer Credit Matters 210.14-b Additional Mailing of Notice on an Action Arising from a Consumer Credit Transaction 210.15 Transfer of actions 210.16 Discontinuance of civil actions 210.17 Notice of trial where all parties appear by attorney 210.18 Calendars 210.19 [Reserved] 210.20 Special preferences 210.21 Objections to applications for special preference 210.22 Pretrial and prearbitration conference 210.23 to 210.24 [Reserved] 210.25 Engagement of counsel 210.26 [Reserved] 210.27 Submission of papers for trial 210.28 Absence of attorney during trial 210.29 to 210.30 [Reserved] 210.31 Restoration after jury disagreement, mistrial or . . . 210.32 Damages, inquest after default; proof 210.33 Submission of orders, judgments & decrees . . . 210.34 to 210.35 [Reserved] 210.36 Infants' and incapacitated persons' claims . . . 210.37 Executions 210.38 Appeals 210.39 Procedures for the enforcement of money judgments 210.40 Arbitration 210.41 Small claims procedure 210.41-a Commercial claims procedure 210.42 Proceedings under article 7 of the Real Property . . . 210.43 Powers of clerks 210.415 [Renumbered]

Section 210.1 Application of Part; waiver; additional rules; application of UCCA; definitions.

(a) Application . This Part shall be applicable to civil actions and proceedings in the City Courts of the State of New York, outside the City of New York.

(b) Waiver . For good cause shown, and in the interests of justice, the court in an action or proceeding may waive compliance with any of the rules in this Part, other than sections 210.2 and 210.3, unless prohibited from doing so by statute or by a rule of the Chief Judge.

(c) Additional rules . Additional local court rules, not inconsistent with law or with these rules, shall comply with Part 9 of the Rules of the Chief Judge (22 NYCRR Part 9).

(d) Application of the Uniform City Court Act. The provisions of this Part shall be construed as consistent with the Uniform City Court Act (UCCA), and matters not covered by these provisions shall be governed by the UCCA.

(e) Definitions .

(1) Chief Administrator of the Courts in this Part also includes a designee of the Chief Administrator.

(2) Unless otherwise defined in this Part, or the context otherwise requires, all terms used in this Part shall have the same meaning as they have in the UCCA and the CPLR.

Historical Note Sec. filed Jan. 9, 1986 eff. Jan. 6, 1986.

Section 210.2 Terms and parts of court.

(a) Terms of court . In each City Court there shall be held such terms as the Chief Administrator of the Courts shall designate. A term of court is a four- week session of court and there shall be 13 terms of court in a year, unless otherwise provided in the annual schedules of terms established by the Chief Administrator of the Courts which shall also specify the dates of such terms.

(b) Parts of court . A part of court is a designated unit of the court in which specified business of the court is to be conducted by a judge or a quasi-judicial officer. In each City Court there shall be parts of courts, including one or more small claims parts, as may be established from time to time by the Chief Administrator of the Courts.

Section 210.3 Individual assignment system; structure.

(a) General . There shall be established for all civil actions and proceedings heard in city courts and individual assignment system which provides for the continuous supervision of each action and proceeding by a single judge. Except as otherwise may be provided by the Chief Administrator of the Courts or by these rules, every action and proceeding shall be assigned and heard pursuant to the individual assignment system.

(b) Assignments . Actions and proceedings shall be assigned to a judge of the court upon the filing with the court of the first document in the case. Assignments shall be made by the clerk of the court pursuant to a method of selection prescribed by the Chief Administrator. The judge thereby assigned shall be known as the "assigned judge" with respect to that matter and, except as otherwise provided in subdivision (c) of this section, shall conduct all further proceedings therein.

(c) Exceptions .

(1) Where the requirements of matters already assigned to a judge are such as to limit the ability of that judge to handle additional cases, the Chief Administrator may authorize that new assignments to that judge be suspended until the judge is able to handle additional cases.

(2) The Chief Administrator may authorize the establishment in any court of special categories of actions and proceedings, for assignment to judges specially assigned to hear such actions or proceedings.

(3) Matters requiring immediate disposition may be assigned to a judge designated to hear such matters when the assigned judge is not available.

(4) The Chief Administrator may transfer any action or proceeding, and any matter relating to an action or proceeding, from one judge to another in accordance with the needs of the court.

(5) Judges sitting on other than a full-time basis shall be assigned cases in a manner authorized by the Chief Administrator in accordance with the needs of the court.

Section 210.4 Papers filed in court

(a)        Index Number; Form; Label

The party causing the first paper to be filed shall obtain an index number and communicate it forthwith to all other parties to the action. Thereafter such number shall appear on the outside cover and the first page, to the right of the caption, of every paper tendered for filing in the action. Each such cover and first page also shall contain an indication of the county of venue and a brief description of the nature of the paper and, where the case has been assigned to an individual judge, shall contain the name of the assigned judge to the right of the caption. In addition to complying with the provisions of CPLR 2101, every paper filed in court shall have annexed thereto appropriate proof of service on all parties where required, and, if typewritten, shall have at least a double space between each line, except for quotations and the names and addresses of attorneys appearing in the action, and shall have at least one-inch margins. In addition, every paper filed in court, other than an exhibit or printed form, shall contain writing on one side only, except that papers that are fastened on the side may contain writing on both sides. Papers that are stapled or bound securely shall not be rejected for filing simply because they are not bound with a backer of any kind.

(b)        Omission or Redaction of Confidential Personal Information in Civil Actions and Proceedings.

(1) Except for any action or proceeding arising under the Vehicle and Traffic Law, or prosecution of a violation of an ordinance of a city, town or village, or in a petition for change of name under the Civil Rights Law, or as otherwise provided by rule or law or court order, and whether or not a sealing order is or has been sought, the parties shall omit or redact confidential personal information in papers submitted to the court for filing. For purposes of this rule, confidential personal information (“CPI”) means:

i. the taxpayer identification number of an individual or an entity, including a social security number, an employer identification number, and an individual taxpayer identification number, except the last four digits thereof;

ii. the date of an individual's birth, except the year thereof;

iii. the full name of an individual known to be a minor, except the minor's initials; and

iv. a financial account number, including a credit and/or debit card number, a bank account number, an investment account number, and/or an insurance account number, except the last four digits or letters thereof.

(2) The court sua sponte or on motion by any person may order a party to remove CPI from papers or to resubmit a paper with such information redacted; order the clerk to seal the papers or a portion thereof containing CPI in accordance with the requirement of 22 NYCRR § 216.1 that any sealing be no broader than necessary to protect the CPI; for good cause permit the inclusion of CPI in papers; order a party to file an unredacted copy under seal for in camera review; or determine that information in a particular action is not confidential. The court shall consider the pro se status of any party in granting relief pursuant to this provision.

(3) Where a person submitting a paper to a court for filing believes in good faith that the inclusion of the full confidential personal information described in subparagraphs (i) to (iv) of paragraph (1) of this subdivision is material and necessary to the adjudication of the action or proceeding before the court, he or she may apply to the court for leave to serve and file together with a paper in which such information has been set forth in abbreviated form a confidential affidavit or affirmation setting forth the same information in unabbreviated form, appropriately referenced to the page or pages of the paper at which the abbreviated form appears.

(4) The redaction requirement does not apply to the last four digits of the relevant account numbers, if any, in an action arising out of a consumer credit transaction, as defined in subdivision (f) of section one hundred five of the civil practice law and rules. In the event the defendant appears in such an action the defendant may without leave of court submit papers disclosing full account numbers to the extent necessary to ensure that an order or judgment issued by the court contains proof satisfactory to a credit reporting agency. In the event the defendant appears in such an action and denies responsibility for the identified account, the plaintiff may without leave of court amend his or her pleading to add full account or CPI by (i) submitting such amended paper to the court on written notice to defendant for in camera review or (ii) filing such full account or other CPI under seal in accordance with rules promulgated by the chief administrator of the courts.           

Added (b) on December 23, 2015  effective March 1, 2016,

Section 210.5 Submission of papers to judge.

All papers for signature or consideration of the court shall be presented to the clerk of the trial court in the appropriate courtroom or at the clerk's office, except that where the clerk is unavailable or the judge so directs, papers may be submitted to the judge and a copy filed with the clerk at the first available opportunity. All papers for any judge that are filed in the clerk's office shall be promptly delivered to the judge by the clerk. The papers shall be clearly addressed to the judge for whom they are intended and prominently show the nature of the papers, the title and index number of the action in which they are filed, the judge's name and the name of the attorney or party submitting them.

Section 210.6 Summons.

(a) The summons shall state the name and location of the court in which the action is brought, as well as the names of the parties, and shall comply with all provisions of the UCCA applicable to summonses.

(b) The following form shall be used in actions pursuant to UCCA 902(a)(1), where a formal complaint is not served:

YOU ARE HEREBY SUMMONED and required to appear in the.....Court of the City of, ..... located at ....., in said City, County of ....., State of New York, either (i) by serving an answer* within 10 days after service of this summons upon you, exclusive of the day of service, upon plaintiff's attorney, at the address stated below, or if there is no attorney, upon the plaintiff at the address stated above, or (ii) by appearing at the clerk's office within 10 days after service of this summons upon you, exclusive of the day of service, by having the clerk of the court endorse your answer upon this summons; upon your failure to answer, judgment will be taken against you for the sum of $..... with interest thereon from the ..... day of ....., 19 ....., together with the costs of this action.

Dated: the_____ day of _____, 19_____

[FNa1] You need not physically go to the court to serve an answer under option (i).

(c) In a case where a formal complaint is annexed to the summons, the following form of summons, with all blank spaces appropriately filled in, is to be used:

YOU ARE HEREBY SUMMONED and required to appear in the.....Court of the City of ..... , located at ....., in said City, County of ....., State of New York, by serving an answer* to the annexed complaint upon plaintiff's attorney at the address stated below, or if there is no attorney, upon the plaintiff at the address stated above, within the time provided by law as noted below; upon your failure to so answer, judgment will be taken against you for the relief demanded in the complaint, together with the costs of this action.

Dated: the _____ day of _____, 19 _____

Note: The law provides that:

(1) if this summons is served by its delivery to you personally within the County of....., you must answer within 10 days after such service; or

(2) if this summons is served by delivery to any person other than you personally, or is served outside the County of....., or by publication, or by any means other than personal delivery to you within the County of ....., you are allowed 30 days after service is complete within which to answer.

__________________________

*You need not physically go to the court to serve an answer.

Historical Note Sec. filed Jan. 9, 1986; amd. filed May 4, 1992 eff. April 28, 1992. Amended (d). Deleted (d) on Aug. 9, 2007

Section 210.7 Pleadings.

(a) Except as required by statute, a formal pleading may be dispensed with in any case in which the party required to serve the pleading appears in person, and an order to that effect may be entered ex parte by the judge upon application to the clerk, who shall refer the same to such judge. Any other party may move to modify or vacate such ex parte order.

(b) All formal pleadings in this court and verifications thereof shall be in conformity with CPLR, article 30.

(c) An order directing the service and filing of a formal pleading, or pleadings, shall specify the time within which the same shall be served and filed.

(d) A defendant's time to move or answer may be extended by ex parte order no more than once, and for no longer than 10 days beyond the expiration of the original time to answer, and only if there has been no previous extension by consent. All further applications for extensions shall be made by motion upon notice.

(e) In any action to recover damages for personal injuries arising out of use or operation of a motor vehicle, plaintiff shall set forth in the complaint, whether in short or long form, the jurisdictional facts that permit plaintiff to maintain the action and avoid the bar of the Comprehensive Automobile Insurance Reparations Act.

Section 210.8 Calendaring of motions; uniform notice of motion form.

(a) There shall be compliance with the procedures prescribed in the UCCA and CPLR for the bringing of motions. In addition, no motion shall be filed with the court unless a notice of motion is served and filed with the motion papers. The notice of motion shall read substantially as follows:

Upon the affidavit of ____, sworn to on ____, 19____, and upon (list supporting papers if any), the .....will move this court at the ____ Courthouse, ____, ____, New York, on the ____ day of ____, 19 ____, at ____ (a.m.) (p.m.) for an order (briefly indicate relief requested).

The above-entitled action is for (briefly state nature of action, e.g., personal injury, contract, property damage etc.). Pursuant to CPLR 2214(b), answering affidavits, if any, are required to be served upon the undersigned at least seven days before the return date of the motion.

(check box if applicable) [ ]

*If any party is appearing pro se, the name, address and telephone number of such party shall be stated.

(b) The notice of motion set forth in subdivision (a) of this section shall not be required for the return of an order to show cause or an application for ex parte relief.

Section 210.9 Motion procedure.

(a) All motions shall be returnable before the assigned judge. The moving party shall serve copies of all affidavits and briefs upon the adverse parties at the time of service of the notice of motion. The answering party shall serve copies of all affidavits and briefs as required by CPLR 2214. Affidavits shall be for a statement of the relevant facts, and briefs shall be for a statement of the relevant law. Unless otherwise directed by the court, answering and reply affidavits and all other papers required to be furnished to the court by CPLR 2214(c) must be filed no later than the time of argument or submission of the motion.

(b) The assigned judge may determine that any or all motions be orally argued, and may direct that moving and responding papers be filed with the court prior to the time of argument.

(c) Unless oral argument has been requested by a party and permitted by the court, or directed by the court, motion papers received by the clerk of the court on or before the return date shall be deemed submitted as of the return date. A party requesting oral argument shall set forth such request in the notice of motion or on the first page of the answering papers, as the case may be. A party requesting oral argument on a motion brought on by an order to show cause shall do so as soon as practicable before the time the motion is to be heard.

Historical Note Sec filed Jan. 9, 1986 eff. Jan. 6, 1986.

Section 210.10 Preliminary conference.

In all actions assigned to a judge where disclosure has not been completed, the court may order a preliminary conference as soon as practicable after the action has been assigned. The matters to be considered at the preliminary conference may include simplification and limitation of factual and legal issues, establishment of a timetable for the completion of all disclosure proceedings, the addition of other necessary parties and settlement of the action.

Section 210.11 [Reserved]

Section 210.12 Videotape recording of depositions.

Depositions authorized under the provisions of the CPLR or other law may be taken, as permitted by subdivision (b) of section 3113 of the CPLR, by means of simultaneous audio and visual electronic recording, provided such recording is made in conformity with section 202.15 of the Rules of the Chief Administrator (22 NYCRR Part 202).

Section 210.13 Exchange of medical reports in personal injury and wrongful death actions.

Except where the court otherwise directs, in all actions in which recovery is sought for personal injuries, disability or death, physical examinations and the exchange of medical information shall be governed by the provisions hereinafter set forth:

(a) At any time after joinder of issue and service of a bill of particulars, the party to be examined or any other party may serve on all other parties a notice fixing the time and place of examination. Unless otherwise stipulated, the examination shall be held not less than 30 nor more than 60 days after service of the notice. If served by any party other than the party to be examined, the notice shall name the examining medical provider or providers. If the notice is served by the party to be examined, the examining parties shall, within 10 days of receipt thereof, submit to the party to be examined the name of the medical providers who will conduct the examination. Any party may move to modify or vacate the notice fixing the time and place of examination or the notice naming the examining medical providers, within 10 days of the receipt thereof, on the grounds that the time or place fixed or the physician named is objectionable, or that the nature of the action is such that the interests of justice will not be served by an examination, exchange of medical reports or delivery of authorizations.

(b) At least 20 days before the date of such examination, or on such other date as the court may direct, the party to be examined shall serve upon and deliver to all other parties the following, which may be used by the examining medical provider:

(1) copies of the medical reports of those medical providers who have previously treated or examined the party seeking recovery. These shall include a recital of the injuries and conditions as to which testimony will be offered at the trial, referring to and identifying those X-ray and technicians' reports which will be offered at the trial, including a description of the injuries sustained, a diagnosis, and a prognosis. Medical reports may consist of completed medical provider, workers' compensation, or insurance forms that provide the information required by this paragraph; and

(2) duly executed and acknowledged written authorizations permitting all parties to obtain and make copies of all hospital records and such other records, including X-ray and technicians' reports, as may be referred to and identified in the reports of those medical providers who have treated or examined the party seeking recovery.

(c) Copies of the reports of the medical providers making examinations pursuant to this section shall be served on all other parties within 45 days after completion of the examination. These shall comply with the requirements of paragraph (b)(1) of this section.

(d) In actions where the cause of death is in issue, each party shall serve upon all other parties copies of the reports of all treating or examining medical providers whose testimony will be offered at the trial, complying with the requirements of paragraph (b)(1) of this section, and the party seeking to recover shall deliver to all other parties authorizations to examine and obtain copies of all hospital records, autopsy or post-mortem reports, and such other records as provided in paragraph (b)(2). Copies of these reports and the required authorizations shall be served and delivered with the bill of particulars by the party seeking to recover. All other parties shall serve copies of the reports of their medical providers within 45 days thereafter. In any case where the interests of justice will not be promoted by service of such reports and delivery of such authorizations, an order dispensing with either or both may be obtained.

(e) Parties relying solely on hospital records may so certify in lieu of serving medical providers' reports.

(f) No case otherwise eligible to be noticed for trial may be noticed unless there has been compliance with this rule, or an order dispensing with compliance or extending the time therefor has been obtained; or, where the party to be examined was served a notice as provided in subdivision (a) of this section, and the party so served has not responded thereto.

(g) In the event that the party examined intends at the trial to offer evidence of further or additional injuries or conditions, nonexistent or not known to exist at the time of service of the original medical reports, such party shall, within 30 days after the discovery thereof, and not later than 30 days before trial, serve upon all parties a supplemental medical report complying with the requirements of paragraph (b)(1) of this section, and shall specify a time not more than 10 days thereafter and a place at which a further examination may be had. Further authorizations to examine and make copies of additional hospital records, other records, X-ray or other technicians' reports as provided in paragraph (b)(2) of this section must also be delivered with the medical reports. Copies of the reports of the examining medical providers, complying with the requirements of subdivision (c) of this section, shall be served within 10 days after completion of such further examination. If any party desires at the trial to offer the testimony of additional treating or examining medical providers, other than whose medical reports have been previously exchanged, the medical reports of such medical providers, complying with the requirements of paragraph (b)(1) of this section shall be served upon all parties of at least 30 days before trial.

(h) Unless an order to the contrary is made or unless the judge presiding at the trial in the interests of justice and upon a showing of good cause shall hold otherwise, the party seeking to recover damages shall be precluded at the trial from offering in evidence any part of the hospital records and all other records, including autopsy or post-mortem records, X-ray reports or reports of other technicians' not made available pursuant to this rule, and no party shall be permitted to offer any evidence of injuries or conditions not set forth or put in issue in the respective medical reports previously exchanged, nor will the court hear the testimony of any treating or examining medical providers whose medical reports have not been served as provided by this rule.

(i) Orders transferring cases pending in other courts which are subject to the provisions of this section, whether or not such cases are consolidated with cases pending in the court to which transferred, shall contain such provisions as are required to bring the transferred cases into compliance with this rule.

(j) Any party may move to compel compliance or to be relieved from compliance with this rule or any provision thereof, but motions directed to the sufficiency of medical reports must be made within 20 days of receipt of such reports. All motions under this rule may be made on affidavits of attorneys, shall be made on notice, returnable at the appropriate motion part and shall be granted or denied on such terms as to costs, calendar position and dates of compliance with any provision of this rule as the court in its discretion shall direct.

(k) Where an examination is conducted on consent prior to the institution of an action, the party to be examined shall deliver the documents specified in paragraphs (b)(1) and (2) of this section, and the report of the examining medical provider shall be delivered as provided in subdivision (c) of this section. In that event, examination after institution of the action may be waived. The waiver, which shall recite that medical reports have been exchanged and that all parties waive further physical examination, shall be filed with the note of issue. This shall not be a bar, however, to proceeding under subdivision (g) of this section in a proper case.

Historical Note Sec. filed Jan. 9, 1986; amd. filed May 4, 1998 eff. April 17, 1998. Amended (a)-(e), (g)-(h), (k).

Section 210.14 Defaults, dismissals and restoration

(a)  At any scheduled call of a calendar or at any conference, if all parties do not appear and proceed or announce their readiness to proceed immediately or subject to the engagement of counsel, the judge may note the default on the record and enter an order as follows:

(1) if the plaintiff appears but the defendant does not, the judge may grant judgment by default or order an inquest;

(2) if the defendant appears but the plaintiff does not, the judge may dismiss the action and may order a severance of counterclaims or cross-claims or strike the action from the trial calendar; or

(3) if no party appears, the judge may make such order as appears just.        (b)  An action stricken from the trial calendar and not restored within one year thereafter shall be deemed abandoned and shall be dismissed by the clerk, without costs, for neglect to prosecute.

(c) Actions stricken from the trial calendar may be restored to the calendar only upon stipulation of all parties so ordered by the court or by motion on notice to all parties made within one year after the action is stricken.  Such motion must be supported by affidavit by a person having firsthand knowledge, satisfactorily explaining the reasons for the action having been stricken and showing that it is presently ready for trial.

Amended December 23, 2015  effective April 1, 2016

Section 210.14-a Proof of Default Judgment in Consumer Credit Matters (Uniform Civil Rules for the City Courts Outside the City of New York)

(a) Definitions.

(1) For purposes of this section a consumer credit transaction means a revolving or open-end credit transaction wherein credit is extended by a financial institution, which is in the business of extending credit, to an individual primarily for personal, family or household purposes, the terms of which include periodic payment provisions, late charges and interest accrual. A consumer credit transaction does not include debt incurred in connection with, among others, medical services, student loans, auto loans or retail installment contracts.

(2) Original creditor means the financial institution that owned the consumer credit account at the time the account was charged off, even if that financial institution did not originate the account. Charged-off consumer debt means a consumer debt that has been removed from an original creditor’s books as an asset and treated as a loss or expense.

(3) Debt buyer means a person or entity that is regularly engaged in the business of purchasing charged-off consumer debt for collection purposes, whether it collects the debt itself, hires a third party for collection, or hires an attorney for collection litigation.

(4) Credit agreement means a copy of a contract or other document governing the account provided to the defendant evidencing the defendant’s agreement to the debt, the amount due on the account, the name of the original creditor, the account number, and the name and address of the defendant. The charge-off statement or the monthly statement recording the most recent purchase transaction, payment or balance transfer shall be deemed sufficient evidence of a credit agreement.

(b) Applicability. Together with any other affidavits required under New York law, the following affidavits shall be required as part of a default judgment application arising from a consumer credit transaction where such application is made to the clerk under CPLR 3215(a).

(1) In original creditor actions, the affidavit set forth in subsection (c), effective October 1, 2014.

(2) In debt buyer actions involving debt purchased from an original creditor on or after October 1, 2014, the affidavits set forth in subsection (d).

(3) Except as set forth in paragraph four of this subsection, the affidavits set forth in subsection (d) shall not be required in debt buyer actions involving debt purchased from an original creditor before October 1, 2014. The plaintiff shall be required to affirm in its affidavit of facts that the debt was purchased from the original creditor before October 1, 2014 and attach proof of that fact.

(4) Effective July 1, 2015, the affidavits set forth in subsection (d) shall be required in all debt buyer actions notwithstanding that the debt was purchased from an original creditor before October 1, 2014.

(5) In all original creditor and debt buyer actions, the affidavit of non-expiration of statute of limitations set forth in subsection (e), effective October 1, 2014.

(c) Where the plaintiff is the original creditor, the plaintiff must submit the AFFIDAVIT OF FACTS BY ORIGINAL CREDITOR.

(d) Where the plaintiff is a debt buyer, the plaintiff must submit the AFFIDAVIT OF FACTS AND PURCHASE OF ACCOUNT BY DEBT BUYER PLAINTIFF, the AFFIDAVIT OF FACTS AND SALE OF ACCOUNT BY ORIGINAL CREDITOR and, if applicable, the AFFIDAVIT OF PURCHASE AND SALE OF ACCOUNT BY DEBT SELLER for each debt seller who owned the debt prior to the plaintiff.

(e) In all applications for a default judgment arising from a consumer credit transaction, the plaintiff must submit the AFFIRMATION OF NON-EXPIRATION OF STATUTE OF LIMITATIONS executed by counsel.

(f) The affidavits required by this section may not be combined. Affidavits may be augmented to provide explanatory details, and supplemental affidavits may be filed for the same purpose.

(g) The affidavits required by this section shall be supported by exhibits, including a copy of the credit agreement as defined in this section, the bill of sale or written assignment of the account where applicable, and relevant business records of the Original Creditor that set forth the name of the defendant; the last four digits of the account number; the date and amount of the charge-off balance; the date and amount of the last payment, if any; the amounts of any post-charge-off interest and post-charge-off fees and charges, less any post-charge-off credits or payments made by or on behalf the defendant; and the balance due at the time of sale.

(h) If a verified complaint has been served, it may be used as the plaintiff’s affidavit of facts where it satisfies the elements of the AFFIDAVIT OF FACTS AND PURCHASE OF ACCOUNT BY DEBT BUYER PLAINTIFF.

(i) The County Clerk or clerk of the court shall refuse to accept for filing a default judgment application that does not comply with the requirements of this section.

(j) Nothing in this section is intended to impair a plaintiff’s ability to make a default judgment application to the court as authorized under CPLR 3215(b).

Historical Note Added Sept. 15, 2014, eff. Oct. 1, 2014

Section 210.14-b Additional Mailing of Notice on an Action Arising from a Consumer Credit Transaction (Uniform Civil Rules for the City Courts Outside the City of New York)

(a) Additional mailing of notice on an action arising from a consumer credit transaction.

(1) At the time of filing with the clerk the proof of service of the summons and complaint in an action arising from a consumer credit transaction, or at any time thereafter, the plaintiff shall submit to the clerk a stamped unsealed envelope addressed to the defendant together with a written notice, in both English and Spanish, containing the following language:

SUPREME/DISTRICT/CITY COURT. COUNTY/CITY OF __________

COUNTY OF ______________ INDEX NO. ___________

Plaintiff ___________________ Defendant _____________

ATTENTION: A lawsuit has been filed against you claiming that you owe money for an unpaid consumer debt. You should respond to the lawsuit as soon as possible by filing an “answer.” You may wish to contact an attorney. If you do not respond to the lawsuit, the court may enter a money judgment against you. Once entered, a judgment is good and can be used against you for twenty years, and your personal property and money, including a portion of your paycheck and/or bank account, may be taken from you. Also, a judgment will affect your credit score and can affect your ability to rent a home, find a job, or take out a loan. You cannot be arrested or sent to jail for owing a debt. Additional information can be found on the court system's website at: www.nycourts.gov

PRECAUCIÓN: Se ha presentado una demanda en su contra reclamando que usted debe dinero por una deuda al consumidor no saldada. Usted debe, tan pronto como le sea posible, responder a la demanda presentando una "contestación." Quizás usted quiera comunicarse con un abogado. Si usted no presenta una contestación, el tribunal puede emitir un fallo monetario en contra suya. Una vez emitido, ese fallo es válido y puede ser utilizado contra usted por un período de veinte años, y contra su propiedad personal y su dinero, incluyendo una porción de su salario y/o su cuenta bancaria, los cuales pueden ser embargados. Además, un fallo monetario afecta su crédito y puede afectar su capacidad de alquilar una casa, encontrar trabajo o solicitar un préstamo para comprar un automóvil. Usted no puede ser arrestado ni apresado por adeudar dinero. Puede obtener información adicional en el sitio web del sistema: www.nycourts.gov.

The face of the envelope shall be addressed to the defendant at the address at which process was served, and shall contain the defendant's name, address (including apartment number) and zip code. The face of the envelope also shall contain, in the form of a return address, the appropriate address of the clerk's office to which the defendant should be directed. These addresses are:

[INSERT APPROPRIATE COURT ADDRESS OR ADDRESSES]

(2) The clerk promptly shall mail to the defendant the envelope containing the additional notice set forth in paragraph (1). No default judgment based on defendant's failure to answer shall be entered unless there has been compliance with this subdivision and at least 20 days have elapsed from the date of mailing by the clerk. No default judgment based on defendant’s failure to answer shall be entered if the additional notice is returned to the court as undeliverable, unless the address at which process was served matches the address of the defendant on a Certified Abstract of Driving Record issued from the New York State Department of Motor Vehicles. Receipt of the additional notice by the defendant does not confer jurisdiction on the court in the absence of proper service of process.

Section 210.15 Transfer of actions.

Actions transferred from the Supreme Court or County Court to a City Court shall be placed in such order and relative position on the appropriate calendars that they will be reached for trial insofar as practicable, as if a notice of trial had originally been filed in the City Court for the same date as that for which the notice of issue was filed in the Supreme Court or County Court.

Section 210.16 Discontinuance of civil actions.

In any discontinued action, the attorney for the plaintiff shall file a stipulation or statement of discontinuance with the clerk of the court within 20 days of such discontinuance. If the action has been noticed for judicial activity within 20 days of such discontinuance, the stipulation or statement shall be filed before the date scheduled for such activity.

Historical Note Sec. filed Jan. 9, 1986; repealed, new filed April 27, 1993 eff. April 14. 1993.

Section 210.17 Notice of trial where all parties appear by attorney.

(a) The notice of trial filed by any party pursuant to UCCA 1301 shall be accompanied by a certificate of readiness, with proof of service on all parties in the form prescribed by this section. The notice of trial shall include the index number, the name of the judge to whom the action is assigned, name, office address and telephone number of each attorney and pro se party who has appeared, and the name of any insurance carrier acting on behalf of any party.

(b) Within 20 days after service of such notice of trial, any party may move to vacate the notice. The affidavit in support of the application must specify the reason for vacating the notice.

(c) After any notice of trial has been filed pursuant to this rule, no pretrial examination or other preliminary proceedings may be had, except that if some unusual or unanticipated conditions subsequently develop which make it necessary that further pretrial examination or further preliminary proceedings be had, and if without them the moving party would be unduly prejudiced, the court may make an order granting permission to conduct such examination or proceedings and prescribing the time therefor. Such an order may be made only upon motion on notice showing in detail, by affidavit, the facts claimed to entitle the moving party to relief under this subdivision.

(d) Where a party filing a notice of trial, in a medical malpractice action or an action against a municipality, seeking a sum of money only, is prohibited by the provisions of CPLR 3017(c) from stating in the pleadings the amount of damages sought in the action, the party shall indicate in the notice of trial whether the amount of damages exceeds $6,000, exclusive of costs and interest. If it does not, the party shall also indicate if it exceeds $2,000, exclusive of costs and interest.

(e) The certificate of readiness shall read substantially as follows:

Section 210.18 Calendars.

(a) A judge to whom cases are assigned under the individual assignment system may establish such calendar of cases as the judge shall deem necessary or desirable for proper case management.

(b) Continuous calendars . In any court not continuously in session, the calendars at the close of one term or session of court shall be used to open the following term or session, and actions on the calendars shall retain their positions.

(c) Military calendar . A military calendar shall be utilized to hold in suspense an action that cannot reasonably be tried because a party or a witness necessary upon the trial is in military service and is not presently available for trial, and a deposition cannot be taken, or, if taken, would not provide adequate evidence.

(d) Calendar progression . With due regard to the requirements of statutory preferences and of section 210.20 of this Part, when actions are advanced from one calendar to another they shall progress from the head of one calendar to the foot of the next calendar, and otherwise progress in order, insofar as practicable, unless otherwise determined by the court.

(e) Call of calendars. Judges to whom actions and proceedings are assigned pursuant to the individual assignment system may schedule calls of any calendars they have established at such times as they deem appropriate.

(f) Readiness for trial . When an action has been announced "ready" but a trial is not immediately available, counsel may arrange with the judge to be summoned by telephone, provided they agree to hold themselves available and to appear on one hour's notice, or at such other time as he court may order, at the time assigned for trial.

Section 210.19 [Reserved]

Section 210.20 Special preferences.

(a) Any party claiming a preference under CPLR 3403 may apply to the court in the manner prescribed by that rule, the note of issue therein referred to being deemed a reference to a notice of trial.

(b) Counterclaims and cross-claims . A counterclaim or cross-claim which is not entitled to a preference shall not itself defeat the plaintiff's right to a preference under this section.

(c) Result of preference being granted . If a preference is granted, the action shall be placed ahead of all nonpreferred pending cases, as directed by the court, unless the court otherwise orders.

Section 210.21 Objections to applications for special preference.

(a) Within 20 days of the filing of the notice of trial, if the notice of motion for a special preference is filed therewith, or within 10 days of the service of a notice of motion to obtain a preference if served and filed subsequent to service and filing of the notice of trial, any other party may serve upon all other parties and file with the court affidavits and other relevant papers, with proof of service, in opposition to granting the preference. In the event such opposing papers are filed, the party applying for the preference may, within five days thereafter, serve and file in like manner papers in rebuttal.

(b) In any action which has been accorded a preference in trial upon a motion, the court shall not be precluded, on its own motion at any time thereafter, from ordering that the action is not entitled to a preference under these rules.

(c) Notwithstanding the failure of any party to oppose the application, no preference shall be granted by default unless the court finds that the action is entitled to a preference.

Section 210.22 Pretrial and prearbitration conference.

After the filing of a notice of trial and certificate of readiness in any action, the judge shall order such pretrial and prearbitration conferences as required by the needs of the court. The attendance of attorneys who are familiar with the case and who are authorized to act shall be required. The court may also require the attendance of parties and, in the event of failure of attendance by attorneys or parties, the court shall have the same powers with respect to dismissals, defaults, or both as it might exercise when a case is reached for trial. Upon the pretrial of an action, the judge shall consider with counsel and parties the simplification and limitation of the issues and the obtaining of admissions of facts and of documents to avoid unnecessary proof, as well as the ultimate disposition of the action by settlement or compromise.

Section 210.23 to 210.24 [Reserved]

Section 210.25 Engagement of counsel.

No adjournment shall be granted on the ground of engagement of counsel except in accordance with Part 125 of the Rules of the Chief Administrator of the Courts (22 NYCRR Part 125).

Section 210.26 [Reserved]

Section 210.27 Submission of papers for trial.

(a) Upon the trial of an action, the following papers, if not yet submitted, shall be submitted to the court by the party who has filed the notice of trial:

(1) copies of all pleadings marked as required by CPLR 4012;

(2) a copy of any statutory provision in effect at the time the cause of action arose upon which either the plaintiff or the defendant relies; and

(3) a copy of the bill of particulars, if any.

(b) If so ordered, the parties shall submit to the court, before the commencement of trial, trial memoranda which shall be exchanged among counsel.

Section 210.28 Absence of attorney during trial.

All trial counsel shall remain in attendance at all stages of the trial until the jury retires to deliberate, unless excused by the judge presiding. The court may permit counsel to leave, provided counsel remain in telephone contact with the court. Any counsel not present during the jury deliberation, further requests to charge, or report of the jury verdict shall be deemed to stipulate that the court may proceed in his or her absence and to waive any irregularity in proceedings taken in his or her absence.

Section 210.29 to 210.30 [Reserved]

Section 210.31 Restoration after jury disagreement, mistrial or order for new trial.

An action in which there has been an inability by a jury to reach a verdict, a mistrial or a new trial granted by the trial judge or an appellate court shall be rescheduled for trial. Where a new trial is granted by an appellate court, a notice to reschedule shall be filed with the appropriate clerk.

Section 210.32 Damages, inquest after default; proof.

(a) In an inquest to ascertain damages upon a default pursuant to CPLR 3215, if the defaulting party fails to appear in person or by representative, the party entitled to judgment, whether a plaintiff, third-party plaintiff, or a party who has pleaded a cross-claim or counterclaim, shall be permitted to submit, in addition to the proof required by CPLR 3215(e), properly executed affidavits as proof of damages.

(b) In any action where it is necessary to take an inquest before the court, the party seeking damages may submit the proof required by oral testimony of witnesses in open court or by written statements of the witnesses, in narrative or question-and-answer form, signed and sworn to.

Section 210.33 Submission of orders, judgments and decrees for signature.

(a) Proposed orders or judgments, with proof of service on all parties where the order is directed to be settled or submitted on notice, must be submitted for signature, unless otherwise directed by the court, within 60 days after the signing and filing of the decision directing that the order be settled or submitted.

(b) Failure to submit the order or judgment timely shall be deemed an abandonment of the motion or action, unless for good cause shown.

(1) When settlement of an order or judgment is directed by the court, a copy of the proposed order or judgment with notice of settlement, returnable at the office of the clerk of the court in which the order or judgment was granted, or before the judges if the court has so directed or if the clerk is unavailable, shall be served on all parties either:

(i) by personal service not less than five days before the date of settlement; or

(ii) by mail not less than 10 days before the date of settlement.

(2) Proposed counterorders or judgments shall be made returnable on the same date and at the same place, and shall be served on all parties by personal service, not less than two days, or by mail, not less than seven days, before the date of settlement.

Section 210.34 to 210.35 [Reserved]

Section 210.36 Infants' and incapacitated persons' claims and proceedings.

The settlement of an action by an infant or judicially declared incapacitated person (including an incompetent or conservatee) shall comply with CPLR 1207 and 1208, section 202.67 of the Rules of the Chief Administrator (22 NYCRR 202.67) and, in the case of an infant, with section 474 of the Judiciary Law.

Historical Note Sec. filed Jan. 9, 1986; amd. filed Sept. 22, 1993 eff. Sept. 3, 1993.

Section 210.37 Executions.

(a) No execution may be issued against any party who has appeared by an attorney in an action or proceeding, unless a copy of the judgment has been duly served upon the attorney for such party.

(b) No execution may be issued against any party who has appeared in person in any action and who defaults in answering either the original or an amended or supplemental complaint unless a copy of the judgment has been duly served upon such party personally or mailed to such party by certified mail at the address stated in the notice of appearance or in the last pleading or paper filed by the party with the clerk or at the address last furnished by the party to the clerk in writing.

Section 210.38 Appeals.

(a) A notice of appeal shall not be accepted for filing without proof of service upon all parties.

(b) All papers which are to be included in the return on appeal and prepared by the appellant as required by the applicable provisions of the CPLR, shall be furnished by the appellant to the clerk at the time of filing the notice of settlement provided in section 1704 of the UCCA.

(c) In the case of the death, disability or prolonged absence from the city of the judge before whom the action was tried, the return on appeal may be settled by any judge authorized by the Chief Administrator of the Courts with the same force and effect as if he had tried the case.

Section 210.39 Procedures for the enforcement of money judgments under CPLR article 52.

(a) All subpoenas and processes for the examination of judgment debtors or other persons, including garnishees, in connection with the enforcement of money judgments, as well as adjournments thereof if made returnable in the court, shall be returnable in the appropriate motion part of each City Court.

(b) All subpoenas and processes for the examination of judgment debtors or other persons, including garnishees, if made returnable in the court, shall be filed with the clerk of the appropriate motion part, with proper affidavits of service, at least two court days before the return day, except where service was made too late for filing within such time, in which event filing before the hour of the return shall suffice and the clerk shall list all such upon the calendar. Stipulations of adjournments, if attendance in court on the adjourned date is required, shall be similarly filed. Unless so filed, the names of the parties shall not be called; nor shall any such names be called unless they appear on a written or typewritten calendar. The judge presiding may, upon proper proof by affidavit showing good cause for the failure to file in accordance with this rule, add any matter to the calendar.

(c) No adjournment of an examination shall be valid unless reduced to writing and a copy thereof delivered to the judgment debtor or other person, including a garnishee, at the time of such adjournment, and his acknowledgment of the receipt thereof is endorsed on the original.

(d) There shall be no more than two adjournments of the examination of a judgment debtor or other person, including a garnishee, unless such additional adjournment is approved and such approval is noted on the papers by the judge presiding at a motion part.

(e) No motion shall be made upon the basis of any testimony taken in examinations unless and until such testimony has been reduced to writing and unless and until there has been compliance with the requirements of CPLR 5224(e).

(f) Every subpoena or other process providing for the examination of a judgment debtor or other person, including a garnishee, in addition to the other requirements of CPLR 5223, shall have endorsed on its face, in bold type, the words: "This subpoena or process (as the case may be) requires your personal appearance at the time and place specified. Failure to appear may subject you to fine and imprisonment for contempt of court."

Section 210.40 Arbitration.

(a) Alternative method of dispute resolution by arbitration . Where the Chief Administrator of the Courts has established this arbitration program, Part 28 of the Rules of the Chief Judge (22 NYCRR Part 28) shall control the proceedings.

(b) Where the parties agree to arbitrate a claim under UCCA 206, arbitration proceedings shall be conducted in accordance with CPLR article 75.

Section 210.41 Small claims procedure.

(a) A small claims action shall be instituted by a plaintiff or someone on his or her behalf paying the filing fee as provided in UCCA 1803, and by supplying to the clerk the following information:

(1) plaintiff's name and residence address;

(2) defendant's name and place of residence, or place of business or employment; and

(3) the nature and amount of the plaintiff's claim, giving dates and other relevant information.

(b) The clerk shall reduce this information to a written statement, on a form provided therefor and shall record it in his office. The statement shall be in nontechnical, concise and simple language, and shall be signed by the person who shall have supplied the information contained therein.

(c) The clerk shall give to the person who signed the statement a memorandum of the time and place set for the hearing, which shall be as soon as practicable, and shall advise such person to produce at the hearing supporting witnesses, account books, receipts or other documents required to establish the claim.

(d) Within five days after the action is recorded, the clerk shall send to the defendant by ordinary first class mail and by certified mail, return receipt requested, addressed to one or more of the addresses supplied as shall be deemed necessary, a signed notice bearing the seal of the court, which shall be in substantially the following form:

CITY COURT OF THE CITY OF ......................................

COUNTY OF .............................................................

SMALL CLAIMS PART

TO: .......................................................................

Take Notice that.................. asks judgment in this Court against you for $.............together with costs, upon the following claim:

....................................................................... ....................................................................... .......................................................................

There will be a hearing before the Court upon this claim on....., 19....., at ..... o' clock ..... M., in the Small Claims Part, held at ...............................

You must appear and present your defense and any counterclaim you may desire to assert at the hearing at the time and place above set forth (a corporation must be represented by an attorney or any authorized officer, director or employee). IF YOU DO NOT APPEAR, JUDGMENT WILL BE ENTERED AGAINST YOU BY DEFAULT EVEN THOUGH YOU MAY HAVE A VALID DEFENSE. If your defense or counterclaim, if any, is supported by witnesses, account books, receipts or other documents, you must produce them at the hearing. The Clerk, if requested, will issue subpoenas for witnesses, without fee thereof.

If you wish to present a counterclaim against the claimant, you must do so by filing with the Clerk of the Court a statement containing such counterclaim within five days of receiving this notice of claim. At the time of such filing you must pay the Clerk a filing fee of $3.00 plus the cost of postage to send your counterclaim by first class mail to the claimant. If you fail to file a counterclaim within this five- day period, you retain the right to file the counterclaim until the time of the hearing, but the claimant may request and obtain an adjournment of the hearing to a later date.

If you admit the claim, but desire time to pay, you must appear personally on the day set for the hearing and state to the Court your reasons for desiring time to pay.

Dated: ....., 20.....

________________________________ Clerk

A Guide to Small Claims Court is available at the court listed above.

NOTE: If you desire a jury trial, you must, before the day upon which you have been notified to appear, file with the Clerk of the Court a written demand for a trial by jury. You must also pay to the clerk a jury fee of $55 and file an undertaking in the sum of $50, or deposit such sum in cash to secure the payment of any costs that may be awarded against you. You will also be required to make an affidavit specifying the issues of fact which you desire to have tried by a jury and stating that such trial is desired and demanded in good faith.

Under the law, the Court may award $25 additional costs to the plaintiff if a jury trial is demanded by you and a decision is rendered against you.

(e) The clerk shall note, on the statement referred to in subdivision (a) of this section, the date on which the notice was mailed and the address, the date of delivery shown by the return receipt and the name of the addressee or agent signing the receipt.

(f) If service of notice cannot be effected upon the defendant within four months following the date on which the action was first instituted, the action shall be dismissed without prejudice.

(1) Where all parties appear by attorneys, the case may by transferred to a regular part of court, and the claimant shall pay any additional filing fees required by law. If the claimant fails or refuses to pay such filing fees, the court shall dismiss the case.

(g) Unless the court shall otherwise order, a defendant to whom notice was duly given who fails to appear at the hearing on the day and time fixed, either in person or by attorney, shall be held to be in default, except that no default shall be ordered if the defendant or his attorney appear within one hour after the time fixed.

(h) If at the hearing it shall appear that the defendant has a counterclaim in an amount within the jurisdiction of the part for the hearing of small claims, the judge may either proceed forthwith to hear the entire case or may adjourn the hearing for a period of not more than 20 days, or as soon thereafter as may be practicable, at which adjourned time the hearing of the entire case shall be had. An adjournment shall be granted at the request of the claimant if the defendant did not file the counterclaim with the court within five days of receiving the notice of claim.

(i) An oath or affirmation shall be administered to all witnesses. The court shall conduct the hearing in such manner as it deems best suited to discover the facts and to determine the justice of the case. If the plaintiff, or an attorney in his or her behalf, does not appear at the time set for hearing, the court may dismiss the claim for want of prosecution or enter a finding on the merits for the defendant, or make such other disposition as it may deem proper.

(j) Where, after a claim is filed with the clerk, either party to the action desires to implead one or more additional defendants, the clerk shall, upon receipt of the proper fees, issue and mail a notice of claim to each additional defendant under the procedure set forth above.

(k) The undertaking to be filed by a defendant desiring a jury trial shall be in the form prescribed by the relevant provisions of article 25 of the CPLR.

(l) All motions pertaining to small claims shall be made returnable at a part and session appointed for the hearing of small claims, except that a motion to remove a case from the small claims part shall be assigned to a judge in the manner authorized by the Chief Administrator.

(m) There may be arbitration of any small claims controversy.

(1) The parties to any controversy, except infants and incompetents, may submit the same for arbitration to any attorney, duly appointed as a small claims arbitrator by the administrative judge of the court, so assigned for such duty at that term of the court and upon whom they shall agree.

(2) The parties shall sign a consent which shall contain the name of the arbitrator, a brief recital of the nature of the controversy to be determined, a statement that they will abide by these rules and an affirmation that the decision of the arbitrator is final and that no appeal shall lie from the award. The consent must be filed with the clerk of the small claims part.

(3) The arbitrator shall forthwith proceed to hear the controversy. He or she shall not be bound by the rules regarding the admissibility of evidence, but all testimony shall be given under oath or affirmation. Either party may be represented by counsel, but no record of the proceeding before the arbitrator shall be kept. No expense shall be incurred by the arbitrator except upon the consent in writing of the parties.

(4) After the first hearing, neither party may withdraw from the arbitration unless both parties consent to, or the arbitrator directs, a discontinuance of the proceeding.

(5) The arbitrator shall make an award in writing and file the same forthwith, together with his or her opinion, if any, with the clerk of the small claims part. Unless both parties file a request in writing not to enter judgment, the clerk shall, within two days after the filing of the award, enter judgment in accordance therewith, provided the award has been filed within 30 days from the date of filing the consent. The time within which the clerk shall enter judgment may be extended by a stipulation in writing for a further period not to exceed 30 days.

(6) No fees or disbursements of any kind shall be demanded or received except as hereinabove provided.

(n) The court or a supervising judge thereof may transfer a small claim to any other part of the court for the purpose of subjecting such claim to arbitration pursuant to Part 28 of this Title and rule 3405 of the CPLR. In the event a trial de novo is demanded pursuant to Part 28, the transfer shall be deemed rescinded and the claim shall be heard in the small claims part of the court no later than 30 days after the demand is made unless thereafter it is transferred to any other part of court pursuant to law.

Historical Note Sec. filed Jan. 9, 1986; amds. filed: Dec. 28, 1988; Sept. 23, 1991; Jan. 26, 1995; Feb. 2, 1995; March 23, 1995; Aug. 20, 1996; Sept. 10, 2001 eff. Aug. 30, 2001. Amended (d).

Section 210.41-a Commercial claims procedure.

(a) A commercial claims action may be brought by a claimant that is:

(1) a corporation, including a municipal or public benefit corporation, partnership, or association, which has its principal office in the State of New York, or

(2) an assignee of any commercial claim, subject to the restrictions set forth in UCCA 1809-A. The action shall be instituted by the claimant or someone on its behalf by paying the filing fee and the cost of sending the notice of claim as provided in UCCA 1803-A and by filing and signing a written application containing the following information:

(i) claimant's name and principal office address;

(ii) defendant's name and place of residence or place of business or employment;

(iii) the nature and amount of the claim, including dates and other relevant information; where the claim arises out of a consumer transaction (one where the money, property or service which is the subject of the transaction is primarily for personal, family or household purposes), information showing that the transaction is a consumer transaction;

(iv) a certification that not more than five claims have been instituted in the courts of this State in the calendar month; and

(v) in the case of a commercial claim arising out of a consumer transaction, a certification that the claimant has mailed a demand letter, containing the information set forth in UCCA section 1803-A, no less than 10 days and no more than 180 days prior to the commencement of the claim.

(b) Unless the clerk shall require the claimant, pursuant to UCCA 1810-A, to apply to the court for leave to prosecute the claim in a commercial claims part, the clerk shall reduce to a concise written form and record in a special docket the information contained in the application, and shall give to the person who signed the statement a memorandum of the time and place set for the hearing, which shall be as soon as practicable and shall advise such person to produce at the hearing supporting witnesses, account books, receipts or other documents required to establish the claim. The clerk shall advise the claimant of the right of the claimant or the defendant to request an evening hearing, which shall not be so scheduled if it would cause unreasonable hardship to either party, and the clerk shall schedule the hearing so as to minimize the defendant's time away from employment. In the case of a commercial claim arising out of a consumer transaction, the clerk shall mark the claim conspicuously as a consumer transaction and shall record it in the docket marked as a consumer transaction.

(c) Within five days after the action is filed, the clerk shall send to the defendant by ordinary first class mail and by certified mail, return receipt requested, at one of the addresses required by UCCA §1803-A, as shall be deemed necessary, a signed notice bearing the seal of the court, which shall be in substantially the following form:

CITY COURT OF THE CITY OF ___________________________________

COUNTY OF ___________________________________________________

COMMERCIAL CLAIMS PART

TO: ___________________

Take Notice that ____ asks judgment in this Court against you for $ ____ together with costs, upon the following claim:

______________________________________________________________

______________________________________________________________ There will be a hearing before the Court upon this claim on ____, 19 ____, at ____ o' clock ____ M, in the Commercial Claims Part, held at _______________.

You must appear and present your defense and any counterclaim you may desire to assert at the hearing at the time and place above set forth. (You may request that the hearing be scheduled during evening hours if you do so within 14 days of receipt of this notice.) IF YOU DO NOT APPEAR, JUDGMENT WILL BE ENTERED AGAINST YOU BY DEFAULT EVEN THOUGH YOU MAY HAVE A VALID DEFENSE. If your defense or counterclaim, if any, is supported by witnesses, account books, receipts or other documents, you must produce them at the hearing. The Clerk, if requested, will issue subpoenas for witnesses, without fee thereof.

Read the attached sheet for more information.

Dated: ____, 20____

A Guide for Commercial Claims Court is available at the court listed above.

NOTE: If you desire a jury trial, you must, before the day upon which you have been notified to appear, file with the Clerk of the Court a written demand for a trial by jury. You must also pay to the clerk a jury fee of $55 and file an undertaking in the sum of $50 or deposit such sum in cash to secure the payment of any costs that may be awarded against you. You will also be required to make an affidavit specifying the issues of fact which you desire to have tried by a jury and stating that such trial is desired and demanded in good faith.

Under the law, the court may award $25 additional costs to the plaintiff if a jury trial is demanded by you and a decision is rendered against you.

(d) The clerk shall note on the application the date on which the notice was mailed and the address, the date of delivery shown by the return receipt, and the name of the addressee or agent signing the receipt.

(e) If, after the expiration of 21 days (30 days in the case of a commercial claim arising out of a consumer transaction) from the date the notice was mailed, the ordinary first class mailing has not been returned as undeliverable, the defendant shall be presumed to have received notice of the claim.

(f) If service of notice cannot be made upon the defendant within four months following the date on which the action was first instituted, the action shall be dismissed without prejudice.

(1) Where all parties appear by attorneys, the case may be transferred to a regular part of court, and the claimant shall pay any additional filing fees required by law. If the claimant fails or refuses to pay such filing fees, the court shall dismiss the case.

(g) Unless the court shall otherwise order, a defendant to whom notice was duly given who fails to appear, either in person or by attorney, at the hearing on the day and time fixed, shall be held to be in default, except that no default shall be ordered if the defendant or his or her attorney appears within one hour after the time fixed. Notice of the default judgment, containing the information set forth in UCCA section 1807-A, shall be mailed by first class mail to the claimant and the defendant. The defaulting party may apply to have the default vacated by submitting a written request to the court; proceedings on default shall be governed by, but not limited to, section 5015 of the CPLR.

(h) If at the hearing it shall appear that the defendant has a counterclaim in an amount within the jurisdiction of the part for the hearing of small claims, the judge may either proceed forthwith to hear the entire case or may adjourn the hearing for a period of not more than 20 days or as soon thereafter as may be practicable, at which adjourned time the hearing of the entire case shall be had. An adjournment shall be granted at the request of the claimant if the defendant did not file the counterclaim with the court within five days of receiving the notice of claim.

(i) An oath or affirmation shall be administered to all witnesses. The court shall conduct the hearing in such manner as it deems best suited to discover the facts and to determine the justice of the case. If the claimant, or an attorney in his or her behalf, does not appear at the time set for hearing, the court may dismiss the claim for want of prosecution or enter a finding on the merits for the defendant, or make such other disposition as it may deem proper.

(l) All motions pertaining to commercial claims shall be made returnable at a part and session appointed for the hearing of commercial claims, except that a motion to remove a case from the commercial claims part shall be assigned to a judge in the manner authorized by the Chief Administrator.

(m) There may be arbitration of any commercial claims controversy .

(1) The parties to any controversy, except infants and incompetents, may submit the same for arbitration to any attorney, duly appointed as a commercial claims arbitrator by the administrative judge of this court, so assigned for such duty at that term of the court and upon whom they shall agree.

(2) The parties shall sign a consent which shall contain the name of the arbitrator, a brief recital of the nature of the controversy to be determined, a statement that they will abide by these rules, and an affirmation that the decision of the arbitrator is final and that no appeal shall lie from the award. The consent must be filed with the clerk of the commercial claims part.

(5) The arbitrator shall make his or her award in writing and file the same forthwith, together with an opinion, if any, with the clerk of the commercial claims part. Unless both parties file a request in writing not to enter judgment, the clerk shall, within two days after the filing of the award, enter judgment in accordance therewith, provided the award has been filed within 30 days from the date of filing the consent. The time within which the clerk shall enter judgment may be extended by a stipulation in writing for a further period not to exceed 30 days.

(n) The court or a supervising judge thereof may transfer a commercial claim to any other part of the court for the purpose of subjecting such claim to arbitration pursuant to Part 28 of this Title and rule 3405 of the CPLR. In the event a trial de novo is demanded pursuant to Part 28, the transfer shall be deemed rescinded and the claim shall be heard in the commercial claims part of the court no later than 30 days after the demand is made unless thereafter it is transferred to any other part of court pursuant to law.

Historical Note Sec. added by renum. 210.415, Oct. 1990; amds. filed: Oct. 29, 1990; Jan. 31, 1995; Aug. 20, 1996; April 11, 1997; Sept. 10, 2001 eff. Aug. 30, 2001. Amended (c).

Section 210.42 Proceedings under article 7 of the Real Property Actions and Proceedings Law.

(a) Such proceedings involving residential property shall be commenced in the City Court in which the real property or portion thereof is located. No default shall be noted until at least one hour after the hour when the proceeding is called.

(b) The chief administrator of the courts shall promulgate and post on the Unified Court System website:

(1) a form notice of petition for mandatory use in eviction proceedings involving residential property under Article 7 of the Real Property Actions and Proceedings Law brought on the ground that the respondent has defaulted in the payment of rent;

(2) a form notice of petition for mandatory use in eviction proceedings involving residential property under Article 7 of the Real Property Actions and Proceedings Law (other than in proceedings brought on the ground that the respondent has defaulted in the payment of rent); and

(3) a form notice of petition for use in nonresidential eviction proceedings under Article 7 of the Real Property Actions and Proceedings Law.

(c) At the time of the issuance of a notice of petition by a judge or the clerk, or an order to show cause by the judge, in a summary proceeding to recover possession of real property, a copy of such order to show cause or notice of petition shall be filed with the clerk. The original papers with proof of service thereof shall be filed with the clerk within the time specified by statute.

(d) Where a part exists to hear proceedings brought pursuant to this section, an action noticed to be heard on a day when a judge is not assigned to the part shall not be accepted for filing. The papers shall be returned to the attorney with a notification as to the days on which a judge is assigned.

Amended (b), (c), (d), (e) on October 20, 2023

Amended (b), (c), (d), (e) on July 2, 2024 , effective September 3, 2024

Section 210.43 Powers of clerks.

In accordance with UCCA 105(a), the following shall each have the power to administer oaths, take acknowledgments and sign the process or mandate of the court:

(a) clerks;

(b) deputy clerks;

(c) assistant clerks;

(d) any other nonjudicial person designated by order of the Chief Administrator of the Courts.

Historical Note Sec. filed Jan. 9, 1986 eff. Jan. 9, 1986

Section 210.415 [Renumbered]

Historical Note Sec. filed Dec. 23, 1988; renum. 210.41-a, Oct. 1990.

Surprise Medical Bills

Surprise medical bills and emergency services.

Consumers in New York are protected from surprise bills when treated by an out-of-network provider at a participating hospital or ambulatory surgical center in their health plan’s network. Additionally, consumers with health insurance coverage provided by an insurer or HMO are protected from surprise bills when a participating doctor refers them to a non-participating provider. Consumers in New York are also protected from bills for emergency services in hospitals, including inpatient care following emergency room treatment.

• Learn more about  Consumer Protections Under the No Surprises Act

The following information explains what you need to know about these important protections if:

• you have coverage with an HMO or insurer subject to New York law
• you are uninsured or your employer or union provides self-insured coverage that is not subject to New York law
• you are a health care provider.

Information Your Doctor and Other Health Care Professionals Must Give You  

Information Your Hospital Must Give You

How to protect yourself from a surprise medical bill, if you have health insurance coverage subject to ny law – (your health insurance id card says “fully insured”).

Surprise bills happen when an out-of-network provider treats you at an in-network hospital or ambulatory surgical center OR you are referred by an in-network doctor to an out-of-network provider.  (In-network means in your health plan’s network.)  You only have to pay your in-network cost-sharing for a surprise bill.    

It’s A Surprise Bill At An In-Network Hospital or Ambulatory Surgical Center if an Out-of-Network Provider Treats You and :

• An in-network provider was not available; OR
• An out-of-network provider provided services without your knowledge; OR
• Unforeseen medical services were provided when you received health care services.

It is NOT a surprise bill if you chose to receive services from an out-of-network provider instead of from an available in-network provider before you got to the hospital or ambulatory surgical center.

Beginning January 1, 2022, the following services will usually be a surprise bill when provided by an out-of-network provider in a hospital or ambulatory surgical center: emergency medicine, anesthesia, pathology, radiology, laboratory, neonatology, assistant surgeon, hospitalist, or intensivist services.

If your health care services were before January 1, 2022 , you are only protected from a surprise bill if you were treated by an out-of-network physician (and not other health care providers) at an in-network hospital or ambulatory surgical center.

It’s a Surprise Bill When Your In-Network Doctor Refers You to an Out-of-Network Provider if :

• You did not sign a written consent that you knew the services were out-of-network and would not be covered by your health plan; AND
• During a visit with your participating doctor, a non-participating provider treats you; OR
• Your in-network doctor takes a specimen from you in the office (for example, blood) and sends it to an out-of-network laboratory or pathologist; OR
• For any other health care services when referrals are required under your plan.

If You Get a Surprise Bill Because An Out-of-Network Provider Treats You At An In-Network Hospital Or Ambulatory Surgical Center OR Your Doctor Refers You To An Out-of-Network Provider :

• You only have to pay your in-network cost-sharing.
• If an out-of-network provider bills you for any amount over your in-network cost-sharing (copayment, coinsurance, or deductible) this is called balance-billing.
• If your doctor referred you to an out-of-network provider, you MUST send a Surprise Bill Certification Form to your health plan and your provider to make sure that they know you received a Surprise Bill and that you must be protected from balance billing.
• If an out-of-network provider treats you at an in-network hospital or ambulatory surgical facility, you MUST send a Surprise Bill Certification Form to your health plan and your provider if you received the health care services before January 1, 2022 to make sure that they know you received a Surprise Bill and that you must be protected from balance billing. The form is not required for services provided after January 1, 2022 at an in-network hospital or ambulatory surgical facility, but it is recommended.
• You may also file a complaint with DFS.

If You Have Employer/Union Self-Funded Coverage (your health insurance ID card says “self-funded” or does not say “fully insured”)

The Federal No Surprises Act protections from surprise medical bills from an out-of-network provider in an in-network hospital or ambulatory surgical center apply if your employer or union self-funds your coverage for plans issued or renewed on and after January 1, 2022.

You are only responsible for paying your in-network cost-sharing (copayment, coinsurance, or deductible) for a surprise bill.

For more information about the Federal consumer protections, visit the CMS No Surprises Act website .

For plans issued or renewed before January 1, 2022, you may qualify for an independent dispute resolution (IDR) through New York State by submitting an IDR application to dispute the bill.  To be eligible, services must be provided by a doctor at a hospital or ambulatory surgical center and you aren’t given all the required information about your care.  See Information Your Doctor and Other Health Care Professionals Must Give You and Information Your Hospital Must Give You  for a list of the information that must be provided to you.

Application

Complete an IDR Patient Application and send it to NYS Department of Financial Services, Consumer Assistance Unit/IDR Process, One Commerce Plaza, Albany, NY 12257.

How to Protect Yourself If You Are Uninsured

Good faith estimate for uninsured or self-pay patients.

If you are uninsured, or you are insured but you don’t plan to file a claim with your health plan, health care providers must give you a good faith estimate of what their expected charges will be before you get health care services.

Providers must give you the good faith estimate:

• For services scheduled at least 3 business days ahead of time, within 1 business day of scheduling the service;
• For services scheduled at least 10 business days ahead of time, within 3 business days of scheduling the service; or
• When you ask for the good faith estimate, within 3 business days of you asking for the estimate.

The good faith estimate will include:

• A description of the service you will be getting;
• A list of other services that are reasonably expected to be provided with the service you are getting;
• The diagnosis and expected service codes; and
• The expected charges for the services. 

For more information about good faith estimates, visit the CMS No Surprises Act website . 

Patient-Provider Dispute Resolution Process for Good Faith Estimates

If you are billed for an amount that is at least $400 more than the amount on the good faith estimate you got from your health care provider, you (or your authorized representative) may dispute the charges in the Federal patient-provider dispute resolution process. You have to ask for the review within 120 days of getting the bill.  An independent reviewer will look at the good faith estimate, the bill, and information from the provider to decide the amount, if any, that you have to pay for each service.

You can use the Federal patient-provider dispute resolution process starting in 2022 for billing disputes with the provider that scheduled the service for you.  Later, the process will allow you to dispute bills from other providers that gave you related services.

For more information about the patient-provider dispute resolution process, visit the CMS No Surprises Act website .

New York State Patient-Provider Dispute Resolution Process If You Don’t Get a Good Faith Estimate

If your provider doesn’t give you a good faith estimate and you feel the charge is unreasonable, you may qualify for an independent dispute resolution (IDR) through New York State by submitting an IDR application to dispute the bill. To be eligible, services must be provided by a doctor at a hospital or ambulatory surgical center and you aren’t given all the required information about your care. See Information Your Doctor and Other Health Care Professionals Must Give You and Information Your Hospital Must Give You for a list of the information that must be provided to you.

Information Your Doctor And Other Health Care Professionals Must Give You

Your doctor and other health care professionals, including a group practice of providers, a diagnostic and treatment center, and a health center must give patients and prospective patients the following information:

• Health Plan Networks . The names of health plans in which your provider is in-network. This must be given to you in writing or through a website before you receive non-emergency services and verbally when you schedule an appointment.
• Hospital Affiliations. The hospitals that your provider is affiliated with or that could admit you. This must be given to you in writing or through a website before you receive non-emergency services and verbally when you schedule an appointment.
• Cost of Services . If your provider is not in-network with your health plan, your provider must tell you the estimated amount your provider will bill you for services if you ask.
• The provider's name, if your doctor schedules a certain provider in a practice.
• The name of the provider's practice.
• The provider's address.
• The provider's telephone number.
• The doctor's name.
• The doctor's practice.
• The doctor's address.
• The doctor's telephone number.
• How to determine whether the doctor is in-network with your health plan.

Hospitals must post on their websites:

• Charges . A list of what they charge (or how you can get this information if a list of charges is not posted).
• Health Plan Networks . The health plans in which they are in-network.
• Services provided to you by doctors in the hospital are not included in the hospital's charges.
• Doctors who provide services in the hospital may or may not be in the same health plan networks as the hospital.
• You should ask the doctor arranging your hospital services if the doctor is in your health plan's network.
• Doctors That Could Provide Services to You . The name, address, and telephone number of the doctor groups that the hospital has contracted with to provide services (such as anesthesiology, pathology or radiology) and instructions how to contact these groups to determine if they are in your health plan’s network.
• Doctors Employed By The Hospital . The name, address, and telephone number of doctors employed by the hospital to treat patients and the health care plans where they are in-network.

Hospitals must, in registration or admission materials that they give you before non-emergency hospital services:

• The name, practice name, address, and telephone number of any other doctor who will be arranged by your doctor to treat you.
• Whether doctors who are employed or contracted by the hospital for services, such as anesthesiology, pathology and radiology, are expected to treat you.
• How to Tell If Your Doctor is In-Network With Your Health Plan . Tell you how to find out whether doctors who are employees of the hospital (such as for anesthesiology, pathology and radiology) are in-network with your health plan.

When Receiving Emergency Services

If you have health insurance coverage subject to ny law (your health insurance id card says “fully insured”).

You only have to pay your in-network cost-sharing (copayment, coinsurance, and deductible) for bills for out-of-network emergency services in a hospital.

• This includes bills from doctors, the hospital*, and beginning in January 2022, any other providers who treat you.
• This includes inpatient services if you are admitted to the hospital after your emergency room visit.
• Your provider may only bill you for your in-network cost-sharing (copayment, coinsurance, or deductible) for emergency services, including inpatient services which follow an emergency room visit. 
• Let your health plan know if you receive a bill from an out-of-network provider for emergency services.

Emergency Services - How To Protect Yourself If You Have Employer/Union Self-Funded Coverage (your health insurance ID card says “self-funded” or does not say “fully insured”)

The Federal No Surprises Act protections for bills for out-of-network emergency services apply if your employer or union self-funds your coverage for plans issued or renewed on and after January 1, 2022. This includes inpatient care following emergency room treatment (post-stabilization services).

You are only responsible for paying your in-network cost-sharing (copayment, coinsurance, or deductible) for emergency services. 

For plans issued before January 1, 2022, you may qualify for an independent dispute resolution (IDR) through New York State by submitting an IDR application to dispute the bill.  You will have to pay the fee for the IDR (up to $395) if your provider’s bill is upheld unless your household income is below 250% of the Federal Poverty Level. Complete an IDR Patient Application and send it to NYS Department of Financial Services, Consumer Assistance Unit/IDR Process, One Commerce Plaza, Albany, NY 12257.

Emergency Services - How To Protect Yourself If You Are Uninsured

If you are uninsured, you may file a dispute through the New York State independent dispute resolution (IDR) process if you receive a bill for emergency services in New York that you believe is excessive. You will have to pay the fee for the IDR (up to $395) if your provider’s bill is upheld unless your household income is below 250% of the Federal Poverty Level.

Surprise Medical Bills - What Health Care Providers Need To Know If A Patient Has Insurance Coverage Subject To NY Law (coverage that is not self-funded)

You may only bill your patient for their in-network cost-sharing (copayment, coinsurance, or deductible) for a Surprise Bill in a Hospital or Ambulatory Surgical Center or for a Surprise Bill When Your Patient Received A Referral . Health plans must pay out-of-network providers directly for a surprise bill.

A Bill For Services In a Hospital or Ambulatory Surgical Center is a Surprise Bill If:

• Your patient receives services from an out-of-network provider* at an in-network hospital or ambulatory surgical center and: (1) an in-network provider was not available; or (2) an out-of-network provider provided services without your patient's knowledge; or (3) unforeseen medical circumstances arose at the time the health care services were provided.
• Providers must give patients all notices required under the No Surprises Act and Public Health Law regarding scheduled services.
• Patients must have a meaningful opportunity to choose an in-network provider in advance of the services (at least 72 hours in advance of the services). Notice done on the day of the services does not give the patient a meaningful opportunity to choose an in-network provider.
• It will not be surprise bill when the patient signs the standard written notice and consent form . However, surprise bill protections will typically apply to emergency medicine, anesthesiology, pathology, radiology, laboratory, neonatology, assistant surgeon, hospitalist, and intensivist services (even if the patient receives written notice that you are an out-of-network provider and gives written consent.)
• It will not be a surprise bill if the out-of-network service was preauthorized in advance and the patient received notice that the service was out-of-network and other disclosures required by the Insurance Law, like the amount the health plan would pay for the service.

(*If health care services were before January 1, 2022, the surprise bill protections only apply to the services of out-of-network physicians (and not other health care providers) at an in-network hospital or ambulatory surgical center.)

A Bill For Services Referred By An In-Network Doctor To An Out-of-Network Provider Is A Surprise Bill If:

• Your patient did not sign a written consent acknowledging that the services would be out-of-network and would result in costs not covered by the patient's health plan AND (1) During a visit with an in-network doctor, an out-of-network provider treats the patient; or (2) The patient's in-network doctor takes a specimen from the patient in the office (for example, blood) and sends it to an out-of-network laboratory or pathologist; or (3) For any other health care services when referrals are required under the patient's plan.

Surprise Bill Certification Form . An out-of-network provider may ask their patient to sign a Surprise Bill Certification Form  at the time that services are provided. An out-of-network provider must send a copy to the patient’s health plan. For services at an in-network hospital or ambulatory surgical center, an out-of-network provider can sign the Surprise Bill Certification Form and send it to the health plan with the claim for dates of service on and after January 1, 2022.

Disclosure of Balance Billing Protections . Providers must make publicly available (post in the provider’s public location), post on their public websites, and provide to patients, a one-page notice in clear and understandable language containing information on: 

• The Federal requirements and prohibitions relating to prohibitions on balance billing for emergency services and surprise bills;
• New York requirements prohibiting balancing billing for emergency services and surprise bills; and
• Information on how to contact New York and Federal agencies in case an individual believes that a provider has violated any state or federal prohibitions on balance billing for emergency services and surprise bills. 

Model Disclosure Form . Department of Financial Services has a model disclosure form that providers can use that will satisfy these disclosure requirements.

If You Are an Insurer or Provider with a Dispute

Providers or insurers submitting a dispute involving a surprise bill or bill for emergency services for an insured patient must log onto the DFS portal to obtain a case number.

If it is your first time using the DFS Portal you will need to create a Portal account, then use the Ask for Apps tab to request access to NY IDR. Once you submit the IDR, you will receive an IDR case number:

Once you have the case number:

• fill out the IDR Provider and Insurer Application AND
• send the application to the assigned Independent Dispute Resolution Entity.

Surprise Medical Bills - What Health Care Providers Need To Know If A Patient Is Uninsured

If your patient is uninsured, a bill will be a surprise bill if:  Services are provided by a doctor at a hospital or ambulatory surgical center and the patient is not given all the required information about their care. See Information Your Doctor and Other Health Care Professionals Must Give You and Information Your Hospital Must Give You for a list of the information that must be provided to patients. In such cases, your patient may dispute the amount of the bill through the New York State independent dispute resolution process.

Surprise Medical Bills - What Health Care Providers Need To Know If A Patient Has Employer/Union Self-Funded Coverage

The Federal No Surprises Act protections from surprise medical bills from an out-of-network provider in an in-network hospital or ambulatory surgical center apply if your patient has employer or union self-funded coverage for plans issued or renewed on and after January 1, 2022. Your patient is only responsible for paying their in-network cost-sharing (copayment, coinsurance, or deductible) for a surprise bill. 

For more information about the Federal IDR process for surprise bills visit the CMS No Surprises Act website .

For plans issued or renewed before January 1, 2022, your patient may qualify for an independent dispute resolution (IDR) through New York State by submitting an IDR application to dispute the bill.  A bill will be a surprise bill if services are provided by a doctor at a hospital or ambulatory surgical center and the patient is not given all the required information about their care. See Information Your Doctor and Other Health Care Professionals Must Give You and Information Your Hospital Must Give You for a list of the information that must be provided to patients.

Emergency Services Bills - What Health Care Providers Need To Know If A Patient Has Health Insurance Coverage Subject To NY Law (not self-funded)

When You Bill A Patient . If you are an out-of-network provider that provided emergency services in a hospital, including inpatient services that follow an emergency room visit, you are prohibited from billing a patient for any amount over their in-network cost-sharing (copayment, coinsurance, or deductible).

Payment for emergency services . Health plans are required to pay out-of-network providers directly for emergency services.

Independent Dispute Resolution (IDR) . Health care providers (including hospitals) that are not in a health plan’s network may dispute the amount they are paid by the health plan for emergency services in a hospital, including payment for inpatient services that follow an emergency room visit, through the New York State independent dispute resolution process.

Emergency Services Bills -  What Health Care Providers Need To Know If A Patient Has Employer/Union Self-Funded Coverage

The Federal No Surprises Act protections from bills for emergency services apply if your patient has employer or union self-funded coverage for plans issued on and after January 1, 2022. Your patient is only responsible for paying their in-network cost-sharing for emergency services. 

For more information about the Federal IDR process for emergency services visit the CMS No Surprises Act website .

For plans issued or renewed before January 1, 2022, your patient may qualify for an independent dispute resolution (IDR) through New York State by submitting an IDR application to dispute the bill.

Emergency Services Bills -  What Health Care Providers Need to Know if a Patient Is Uninsured

Your patient may dispute the amount of the bill through the New York State independent dispute resolution process.

Health Care Providers - How to Submit A Dispute Through the New York Independent Dispute Resolution (IDR) Process

Review of disputes by independent dispute resolution entity (idre).

IDR Entity Reviews . Disputes are reviewed by independent dispute resolution entities (IDREs). Decisions will be made by a reviewer with training and experience in health care billing and reimbursement in consultation with a licensed physician in active practice in the same or similar specialty as the physician providing the service that is the subject of the dispute.

30 Day Timeframe . The IDRE will make a determination within 30 days of receipt of the dispute. Parties to the dispute must submit all necessary information with their IDR application and immediately when contacted by the IDRE, or the information will not be considered.

IDRE Determines The Fee . For disputes involving health plans, the IDRE chooses either the out-of-network provider’s bill or the health plan’s payment. For disputes submitted by uninsured patients, the IDRE determines the fee.

IDRE Considers These Factors When Making a Determination :

• Whether there is a gross disparity between the fee charged by the provider and (1) fees paid to the provider for the same services provided to other patients in health care plans in which the provider is out-of-network, and (2) the fees paid by the health plan to reimburse similarly qualified out-of-network providers for the same services in the same region;
• The provider's training, education, experience, and usual charge for comparable services when the provider does not participate with the patient's health plan;
• In the case of a hospital, the teaching status, scope of services, and case mix;
• The circumstances and complexity of the case;
• Patient characteristics; and
• For physician services, the usual and customary cost of the service.

IDRE may direct a good faith negotiation for settlement . In cases when settlement is likely, or if the health plan's payment and the provider's fee are unreasonably far apart, the IDRE may direct the parties to negotiate.

Review is Binding . The review is binding but admissible in court.

Payment For Independent Dispute Resolution (IDR)

Disputes Between a Provider and a Health Plan, Involving an Insured Patient.

• Provider pays the cost of the dispute resolution when the IDRE determines that the health plan's payment is reasonable.
• Health plan pays the cost of the dispute resolution when the IDRE determines that the provider's fee is reasonable.
• Provider and the health plan share the prorated cost when there is a settlement.
• There may be a minimal fee to the provider or health plan submitting the dispute if the dispute is found ineligible or incomplete.

Disputes involving an Uninsured Patient.

• The provider pays the cost of the dispute resolution when the IDRE determines that the provider’s fee is not reasonable.
• The patient pays the cost of the dispute resolution when the IDRE determines that provider’s fee is reasonable, unless it would pose a hardship to the patient. "Hardship" means a household income below 250% of the Federal Poverty Level.

Questions About IDR

If you have questions about IDR, or need help completing an application, call (800) 342-3736 or email [email protected] . Where applicable, please indicate the date(s) of service in your inquiry as different laws and processes may apply depending on when you received the services.

Questions About Becoming a Certified IDRE

For further information on how to become a certified Independent Dispute Resolution Entity (“IDRE”) please visit our IDRE information page or email  [email protected] .

Consumer Questions and Complaints

If you are unable to find the answer to your questions here, check our FAQs. If you are still having trouble, you can file a complaint or contact us for further assistance:

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Sean 'Diddy' Combs arrest: 'Freak offs' at center of sex trafficking, racketeering charges

What to know about combs' arrest.

• Music mogul Sean "Diddy" Combs , who was arrested last night at a hotel in New York City, has been charged with racketeering, sex trafficking and transportation to engage in prostitution.
• At a hearing today in Manhattan, Combs pleaded not guilty. He was denied bail and will remain in custody.
• The charges are tied to "freak offs," coerced sex acts that Combs allegedly orchestrated and recorded, according to a federal indictment .
• A bail appeal hearing has been set for tomorrow afternoon.
• Combs has faced a wave of lawsuits — one as recent as last week — accusing him of sexual assault and misconduct in the past year. He has denied any wrongdoing.

Prosecutors accused Combs of witness tampering

Maite Amorebieta

Tim Stelloh

Prosecutors accused Combs of witness tampering, saying at a hearing today that the rap mogul’s employees tried to ensure his ex-girlfriend and hotel employees wouldn’t say anything about a beating at a Los Angeles hotel eight years ago.

Video of the assault, which captured Combs kicking and stomping on the singer Cassie at the InterContinental Hotel in 2016, disappeared from the hotel’s server, prosecutors said. 

CNN later obtained video of the attack and published it.

Diddy apologized for the incident, which was part of a lawsuit Cassie filed last year , and called his behavior “inexcusable.”

Prosecutors said they have recordings of Combs telling a bandmate of another woman who has accused Combs of sexual assault in a lawsuit that she didn’t have to worry about anything if she was willing to be on his side.

Authorities found bags of pink powder in Combs' hotel room

Bags of pink powder were found in Sean Combs’ hotel room after he flew to New York on the advice of his lawyer two weeks ago to await arrest, prosecutors said.

The powder was not tested, but the prosecutors said it appeared to be narcotics and that similar bags previously seized at Combs' properties tested positive for drugs including ecstasy.

Authorities have interviewed more than 50 witnesses and collected dozens of cellphones, laptops and hard drives, and they are in possession of video that they say shows the coerced sex acts that Combs is accused of orchestrating.

These were 'consenting adults,' Combs' lawyer says

David K. Li

Sean Combs' defense lawyer argued that his client in no way should be mentioned in the same sentence as some of the nation's most notorious sex criminals.

The music mogul's defense attorney Marc Agnifilo said Combs is not disgraced singer R. Kelly , sex cult leader Keith Raniere or accused sex trafficker Jeffrey Epstein .

"This is different," he told the court. "These were consenting adults."

Combs isn't guilty of sex trafficking — just cheating, lawyer says

Combs' defense attorney rejected government allegations that his client committed sex trafficking — but conceded the music mogul has been "unfaithful" for "dark periods" over a decade.

“This is evidence, not of sex trafficking, but of being caught being unfaithful," defense lawyer Marc Agnifilo told the court in arguing for his client to be granted bail. "He was in a 10-year loving relationship through dark periods.”

A judge denied bail for Combs, but the defense hopes to get a second shot at the issue during a hearing tomorrow.

Courtroom sketches show Combs at first hearing

Yasmeen Persaud

Defense lawyer still hopes to get bail for Combs

Kyla Guilfoil

Sean Combs' defense lawyer still hopes he can get bail for his client, who is committed to "fight" for his innocence.

All parties will be back in court at 3:30 tomorrow afternoon to revisit bail, as Combs prepares for trial on three federal charges tied to alleged sex abuse.

"Mr. Combs is a fighter. He’s going to fight this to the end. He’s innocent. He came to New York to establish his innocence," defense lawyer Marc Agnifilo said outside court.

"He’s not afraid. He’s not afraid of the charges," Agnifilo said. "There’s nothing that the government said in their presentation today that changes anyone’s mind about anything.” 

Combs wanted to surrender before his arrest, lawyer claims

Sean Combs' defense lawyer said his client was prepared to surrender to authorities before he was taken into custody last night.

"The government didn't want him to turn himself in. He came here to turn himself in," Combs' defense lawyer Marc Agnifilo told reporters outside court, shortly after a judge denied his client bail.

"So they go in there and arrest him," Agnifilo said. "They arrested a guy who came to New York to turn himself in."

Combs shows little emotion during first court appearance

A solemn Sean Combs showed few facial expressions in his first appearance before a judge after his arrest on three federal charges connected to alleged sex abuse.

Combs wore a black T-shirt, sweatpants and Air Jordan sneakers to court, where at least three of his sons and eight other family members came to support him.

The government argued detention is warranted because of the serious charges Combs faces. The prosecution said Combs is an extreme danger to the community and a flight risk because of his wealth.

Combs pleads not guilty, will remain in custody after judge denies bail

A judge denied bail for Sean "Diddy" Combs after the music mogul pleaded not guilty to three federal charges connected to alleged sex abuse.

Assessing the ‘dangerousness’ of Combs and the charges against him

Sean “Diddy” Combs was charged with sex trafficking, racketeering conspiracy and prostitution transportation. MSNBC legal analyst Lisa Rubin, former prosecutor Kristen Gibbons Feden and former federal prosecutor Kristy Greenberg join Chris Jansing to provide more insight on the charges.

Too many victims of Combs have 'suffered in silence,' lawyer of accuser says

Julia Ainsley

A lawyer for Dawn Richard, who is suing Sean Combs , said too many victims have "suffered in silence" but can now find justice in the federal prosecution of the music mogul.

"So, like many alleged victims, Ms. Richard suffered in silence for a long time," Richard's attorney Arick Fudali told NBC News today outside the court, where Combs made his first appearance before a judge. He faces a three-count indictment stemming from his alleged years of sexual abuse.

"Mr. Combs is a very powerful individual," Fudali said. "It’s very difficult to come out against someone like Mr. Combs, but it was seeing Cassie file her lawsuit and go public that really gave her a sense of empowerment, that it was her turn, and it was her time to come forward with her allegations."

3 of Combs' children arrive at courthouse

At least three of Sean Combs' children came to federal courthouse in New York City on Tuesday afternoon.

Three of his sons, Quincy, Christian and Justin, arrived at federal court at about 2 p.m. ET ahead of their dad's first appearance before a judge.

Combs allegedly has history of coercing witnesses, government says

Federal prosecutors argued that Combs can't be set free ahead of trial because he allegedly has a long history of tampering with witnesses.

Shortly after a sex abuse lawsuit was filed against him in November 2023, Combs "made multiple calls to another victim of his sexual abuse and recorded certain of those calls" while asking for that victim’s "support and 'friendship,'” prosecutors said in their letter asking to deny Combs bail.

Combs, in that call, "attempted to convince the victim that she had willingly engaged in acts constituting sexual abuse," prosecutors continued.

"Even more concerning, since learning about the criminal investigation, including following the execution of the search warrants at his residences, Combs contacted other witnesses on multiple occasions, including other witnesses who had received grand jury subpoenas."

One 'freak off' cost Combs $46,000, prosecutors say

Money was no object when it came to Combs' desires in highly orchestrated sex acts known as "freak offs," the government said.

"The defendant arranged Freak Offs with the assistance of members and associates of the Enterprise, including employees of his business, and the hotel rooms where they were staged often sustained significant damages," according to a prosecution memo seeking to deny Combs bail.

In one such 2012 incident, held inside a Manhattan hotel, Combs had to pay more than "$46,000 to cover damages to a penthouse room following a Freak Off," the prosecution said.

Combs accused of arson, prosecutors detail Molotov cocktail attack on car

In addition to a long list of alleged sex crimes, prosecutors accused Sean "Diddy" Combs of arson in the racketeering conspiracy charge against him.

While U.S. Attorney Damian Williams declined to elaborate on specifics of the the alleged arson, the act might be detailed in the prosecution's request for Combs to be held without bail.

Combs and a co-conspirator kidnapped a victim on Dec. 22, 2011, from the home of someone only identified as “Individual-1,” according to a prosecution memo.

"Approximately two weeks later, the defendant’s co-conspirators set fire to Individual-1’s vehicle by slicing open the car’s convertible top and dropping a Molotov cocktail inside the interior," prosecutors said. "Police and fire department reports extensively document the arson and conclude that the fire was intentionally set. Multiple witnesses would also testify to the defendant bragging about his role in destroying Individual-1’s car."

Combs offers to post $50 million bond, backed by Miami home

Sean Combs offered to post a $50 million bond so he could be released from custody, pending his trial on three federal counts which accuse him of sex crimes that go back more than a decade.

He's also offered to wear a GPS monitor while limiting travel to New York City and Miami, where he'd only be attending court and seeing his doctors and lawyers, according to a proposed bail package filed by his defense team.

A plane owned by Combs is in Los Angeles and he's in the process of selling it, his lawyers said.

Federal prosecutors are asking a judge to deny bail for Combs, insisting that the defendant is a flight risk and danger to the community.

Read the full indictment of Sean 'Diddy' Combs

Combs a flight risk who poses threat to community, prosecutors argue.

Accused sex trafficker Sean Combs is a serious risk of flight and "poses a significant risk of obstructing justice," federal authorities said.

The music mogul has a long history of seeking to bribe and illegally influence witnesses, federal prosecutors said in a 16-page letter to the court asking for Combs to be remanded into custody until trial.

"There are simply no conditions that would ensure that the defendant's efforts to obstruct and tamper with witnesses will stop," prosecutors wrote to Magistrate Judge Robyn Tarnofsky.

Prosecutors said they worry nothing could stop the defendant from acting out violently.

"In sum, the defendant's long history of violent conduct makes clear that even the most stringent bail conditions will not suffice to ensure the safety of the community," according to the government memo.

Combs faces 15 years to life behind bars if convicted of all charges, allegedly making his flight a threat due to his $1 billion net worth.

Combs' alleged 'freak offs' at center of federal prosecution

Hours- and days-long sex acts known as "freak offs" —  allegedly produced, directed and recorded by Combs — are at the core of this federal prosecution against the music mogul.

U.S. Attorney Damian Williams mentioned "freak offs" at least five times in his 18-minute meeting with reporters.

"Combs allegedly planned and controlled the sex performances, which he called 'freak offs' and he often electronically recorded them," Williams told reporters.

"The 'freak offs' sometimes lasted days at a time, involved multiple commercial sex workers, and often involved a variety of narcotics such as ketamine , ecstasy and GHB , which Combs distributed to the victims to keep them obedient and compliant."

Federal prosecutors claimed they seized more than 1,000 bottles of baby oil and other lubricants from Combs' homes that were used in these sex acts.

Combs shows he's a danger based on AR-15 rifles seized, government says

Federal prosecutors put on display images of weapons seized during raids on Combs' homes, including several high capacity firearms.

Two of three AR-15s taken from Combs were in his bedroom closet in Miami, where they had been "broken down into parts, along with magazines with ammunition loaded in them," U.S. Attorney Damian Williams said, pointing at enlarged pictures of the weapons.

Serial numbers on those AR-15s had been defaced, prosecutors said.

Combs will be safe behind bars, prosecutor says in response to Epstein suicide question

U.S. Attorney Damian Williams rejected any hints that Combs could be in danger while behind bars while responding to a question about Jeffrey Epstein's suicide in jail .

"We are concerned with anyone's safety whenever they are detained prior to trial, it's part of our obligation," Williams said.

"But I do not draw any sort of connection between Jeffrey Epstein's suicide and what may or may not happen to any other defendant while they are detained pretrial. Our position is that pretrial detention is warranted (for Combs) under the law and based on the facts of this case."

Federal prosecutors want bail denied to keep Combs locked up until trial

The U.S. government doesn't want Combs released on bail, saying there's a "presumption of detention" in this case.

"So we will be seeking detention," U.S. Attorney Damian Williams told reporters. "There is a presumption of detention in a case like this, and we think that's warranted."

From key to New York City to federal lockup

Combs went from the top of New York City to a federal lockup in one year, with U.S. Attorney Damian Williams pledging the investigation is not done and refusing to take further charges off the table.

"A year ago, Sean Combs stood in Times Square and was handed a key to New York City," Williams told reporters today. "Today, he's been indicted and will face justice in the Southern District of New York."

Combs was later forced to give the ceremonial honor back, when Mayor Eric Adams asked for it to be returned.

"We are not done," Williams added when asked about the potential for more charges. "This investigation is ongoing, and I encourage anyone with information about this case to come forward and to do it quickly."

‘Grotesque’ and a ‘monster’: Sean ‘Diddy’ Combs charged with sex trafficking and more

Sean “Diddy” Combs was charged with sex trafficking and more. NBC News’ Chloe Melas is outside the courthouse with the latest reporting. MSNBC’s Lisa Rubin also joins José Díaz-Balart to break down the indictment.

Combs allegedly punched and kicked his sex abuse victims

In addition to employing drugs and elements of his business enterprises to control victims, Combs also used physical violence to keep women in control, federal prosecutors said.

"On numerous occasions," Combs would assault women by "among other things, striking, punching, dragging, throwing objects at and kicking them," according to a three-count indictment against the music mogul.

In May of this year, Combs apologized for violent behavior after  video surfaced of him beating his ex-girlfriend Cassie in 2016 , matching the description of an incident she detailed in a lawsuit.

At the time he said that his “behavior on that video is inexcusable.”

Criminal acts date back to 2008, prosecutors say

The three-count indictment against Combs include alleged criminal acts going back 16 years, court documents said.

The racketeering count covers acts allegedly committed by the defendant starting in 2008, while sex trafficking and transportation to engage in prostitution started in 2009, court papers showed.

Combs changed his public name and persona to Diddy in 2005 , dropping the P in "P. Diddy."

1,000 bottles of baby oil, lubricants seized in raid of Combs' homes

Federal agents raided Combs' homes in Miami and Los Angeles in March and came away with supplies allegedly used in sexual assaults, court documents showed.

At the time of the raids, federal officials would only say they “executed law enforcement actions” in New York as part of an ongoing investigation, along with teams in Los Angeles and Miami.

In court papers made public today, government officials revealed that they took supplies Combs allegedly used in "Freak Off" sexual assaults.

Agents "seized various Freak Off supplies, including narcotics and more than 1,000 bottles of baby oil and lubricant."

Combs' business empire key to crimes, prosecutors say

At the height of his power, Combs was more than just a musician: He controlled a vast business empire — including record labels and alcohol and clothing brands — that made him a billionaire.

Now, prosecutors are alleging that Combs' commercial enterprise was a key component of his criminal enterprise. The mogul used his businesses and several of his employees "to carry out, facilitate, and cover up his abuse and commercial sex," according to the indictment unsealed this morning.

"Those employees — including security staff, household staff, personal assistants, and high-ranking supervisors — and other close associates acted as COMBS’ intermediaries, and their conduct was facilitated and assisted by COMBS’ control of the Combs Business," prosecutors added. 

Federal prosecutors seeking to seize assets

The U.S. government is seeking to recover significant financial assets from the famed music mogul through this prosecution, court documents revealed.

Combs could be on the hook for "any and all property, real and personal" and an undetermined "sum of money" involved in these alleged crimes, according to the indictment.

The court document did not specifically list any assets or amount of money it would be seeking to take from Combs.

Drugs fueled dayslong 'freak offs,' videos used to 'ensure ... obedience,' prosecutors say

Sex abuse allegedly directed by Combs was fueled by drugs and often went days at a time, prosecutors said.

Victims were filled with drugs to control them for long stretches of time, authorities said, with participants “typically” having to get “IV fluids to recover from the physical exertion.” 

And once victims were lured into this orbit, they were coerced to keep following the suspect's orders, prosecutors said.

Combs used "the sensitive, embarrassing and incriminating recordings that he made during Freak Offs as collateral to ensure the continued obedience and silence of the victims," according to court documents.

'Freak offs': Combs accused of forcing and recording sex acts

Federal prosecutors accused Combs of forcing victims into sex acts that he allegedly called "freak offs," acts which he recorded for his viewing pleasure.

Combs "used force" to "cause victims to engage in extended sex acts with male commercial sex workers that Combs arranged, directed, masturbated during and often electronically recorded," court documents charged.

The defendant called these acts his "freak offs," prosecutors said.

Combs allegedly used his powers to abuse, coerce and 'fulfill his sexual desires'

The charges against Combs allege he "threatened and coerced women and others around him to fulfill his sexual desires" for years, federal prosecutors said.

Combs created "a criminal enterprise whose members and associates engaged in" various crimes, such as "sex trafficking, forced labor, kidnapping, arson, bribery and obstruction of justice," court documents said.

Combs charged with racketeering, sex trafficking and prostitution transportation

Brittany Kubicko

A federal indictment was unsealed against Combs, charging him with three felony counts.

He's been accused of racketeering, sex trafficking and transportation to engage in prostitution.

The artist and music mogul — referenced in the indictment by his real name, Sean Combs — has entered a New York City courtroom to hear the charges.

Combs' attorney arrives at the courthouse

Carolina Gonzalez

Combs’ attorney, Marc Agnifilo, has arrived at Manhattan federal court and briefly spoke to a large media gathering outside.

"He came to New York to basically engage the court system and start the case, and it will start today and he’s going to plead not guilty," Agnifilo said. "He’s going to fight this with all of his energy and all of his might and the full confidence of his lawyers."

Sean “Diddy” Combs is in custody after being arrested in New York last night by federal authorities under charges that are part of a sealed indictment. Combs' arrest comes amid a wave of lawsuits against him alleging sexual assault and sex trafficking. NBC’s Chloe Melas reports and Laura Jarrett offers analysis on the possible charges.

Sean ‘Diddy’ Combs arrest: Timeline and what to know

Since November 2023, Combs has been hit with a series of lawsuits in New York accusing him of sexual assault, sexual trafficking and engaging in other criminal activity.

Here are the lawsuits that were filed against Combs as well as information about law enforcement investigations. Combs has denied all of the allegations individually through statements by his representatives.

The first big hint that Combs could be facing serious legal issues came in November of last year when the singer Cassie, Combs’ former romantic partner, filed a civil suit against him for alleged sexual and physical abuse. That abuse allegedly ranged from 2007 until Cassie left him in late 2018, according to the civil complaint.

Cassie's action then prompted Joi Dickerson-Neal to come forward  and file a suit against Combs, accusing him of drugging and sexually assaulting her while secretly recording that act in 1991. She was a Syracuse University student at the time.

Then in December of that year, a  Jane Doe filed a lawsuit alleging  that she was gang-raped and sex-trafficked by Combs and his business partner, Harve Pierre. The unnamed victim said the assault happened in 2003, when she was 17 and Combs was 34.

Rodney “Lil Rod” Jones  alleged  in a federal suit in February of this year that, while working as a producer for Combs, he and his associates engaged in “serious illegal activity.”

Combs' homes in Los Angeles and Miami were raided by Homeland Security Investigations in March of this year, NBC News reported at the time, citing three sources familiar with the matter. Those raids were mentioned in the indictment made public today, as "Freak Off supplies, including narcotics and more than 1,000 bottle of baby oil and lubricant" were seized.

Stunning video surfaced on CNN in May of this year, showing Combs attacking Cassie  in a 2016 assault she described in the suit.

And earlier this month, Dawn Richard, a former member the Danity Kane musical group that Combs assembled on MTV reality competition “Making the Band,”  sued Combs in federal court, claiming he groped, assaulted and imprisoned her, and threatened her life when she tried to intervene in defense of Combs’ then-girlfriend Cassie.

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