2006 New York Code - Commencement Of Action Upon Commercial Claim.

 
    §   1803-A.  Commencement  of  action  upon  commercial  claim.    (a)
  Commercial claims other than claims arising out of consumer transactions
  shall be commenced upon the payment by the claimant of a filing  fee  of
  twenty-five dollars and the cost of mailings as herein provided, without
  the  service  of  a  summons  and, except by special order of the court,
  without the service of any pleading other than a required  certification
  verified  as to its truthfulness by the claimant on a form prescribed by
  the state office of court administration and filed with the clerk,  that
  no  more  than  five  such actions or proceedings (including the instant
  action or proceeding) have been instituted during that  calendar  month,
  and  a  required  statement  of  its  cause of action by the claimant or
  someone in its behalf to the clerk, who  shall  reduce  the  same  to  a
  concise, written form and record it in a docket kept especially for such
  purpose. Such procedure shall provide that the commercial claims part of
  the  court  shall have no jurisdiction over, and shall dismiss, any case
  with respect to which the required certification is not  made  upon  the
  attempted institution of the action or proceeding.  Such procedure shall
  provide  for the sending of notice of such claim by ordinary first class
  mail and certified mail with  return  receipt  requested  to  the  party
  complained  against  at  his residence, if he resides within the city of
  New York, and his residence is known to the claimant, or at  his  office
  or  place  of  regular employment within the city of New York if he does
  not reside therein or his residence within the city of New York  is  not
  known to the claimant. If, after the expiration of twenty-one days, such
  ordinary first class mailing has not been returned as undeliverable, the
  party  complained  against  shall be presumed to have received notice of
  such claim. Such  notice  shall  include  a  clear  description  of  the
  procedure for filing a counterclaim, pursuant to subdivision (d) of this
  section.
    Such  procedure  shall  further  provide for an early hearing upon and
  determination of such claim. The hearing shall be scheduled in a  manner
  which,  to  the extent possible, minimizes the time the party complained
  against must be absent from employment.
    Either party may request that the hearing be scheduled during  evening
  hours,  provided  that the hearing shall not be scheduled during evening
  hours if it would cause unreasonable hardship to either party. The court
  shall not unreasonably  deny  requests  for  evening  hearings  if  such
  requests  are made by the claimant upon commencement of the action or by
  the party complained against within fourteen  days  of  receipt  of  the
  notice of claim.
    (b)  Commercial claims in actions arising out of consumer transactions
  shall be commenced upon the payment by the claimant of a filing  fee  of
  twenty-five dollars and the cost of mailings as herein provided, without
  the  service  of  a  summons  and, except by special order of the court,
  without the service of any pleading other than a required  statement  of
  the  cause  of  action  by  the claimant or someone on its behalf of the
  clerk, who shall reduce the same to a concise written form including the
  information required by subdivision (c) of this section,  denominate  it
  conspicuously  as  a  consumer  transaction, and record it in the docket
  marked as a consumer  transaction,  and  by  filing  with  the  clerk  a
  required  certificate verified as to its truthfulness by the claimant on
  forms prescribed by the state office of court administration.
    Such verified certificate shall certify  (i)  that  the  claimant  has
  mailed  by  ordinary  first class mail to the party complained against a
  demand letter, no less than ten days and no more than one hundred eighty
  days prior to the commencement of the claim, and (ii) that,  based  upon
  information  and  belief, the claimant has not instituted more than five


  actions or proceedings (including  the  instant  action  or  proceeding)
  during the calendar month.
    A  form for the demand letter shall be prescribed and furnished by the
  state office of court administration and  shall  require  the  following
  information:  the  date  of  the  consumer  transaction; the amount that
  remains unpaid; a copy of the original debt instrument or other document
  underlying the debt and an accounting  of  all  payments,  and,  if  the
  claimant  was  not  a  party  to the original transaction, the names and
  addresses of the parties to the original transaction;  and  a  statement
  that  the  claimant  intends  to  use this part of the court to obtain a
  judgment, that further notice of a hearing date  will  be  sent,  unless
  payment  is  received by a specified date, and that the party complained
  against will be entitled to appear  at  said  hearing  and  present  any
  defenses to the claim.
    In  the  event that the verified certificate is not properly completed
  by the claimant, the court shall not allow the action to  proceed  until
  the  verified  certificate  is  corrected. Notice of such claim shall be
  sent by the clerk by both ordinary first class mail and  certified  mail
  with  return  receipt  requested  to the party complained against at his
  residence, if he resides within the city of New York, and his  residence
  is  known  to  the  claimant,  or  at  his  office  or  place of regular
  employment within the city of New York if he does not reside therein  or
  his  residence within the city of New York is not known to the claimant.
  If, after the expiration of  thirty  days,  such  ordinary  first  class
  mailing  has  not  been  returned as undeliverable, the party complained
  against shall be presumed to have received notice of such claim.
    Such procedure shall further provide for an  early  hearing  upon  and
  determination  of such claim. The hearing shall be scheduled in a manner
  which, to the extent possible, minimizes the time the  party  complained
  against  must  be  absent from employment. Either party may request that
  the hearing be scheduled during evening hours, provided that the hearing
  shall  not  be  scheduled  during  evening  hours  if  it  would   cause
  unreasonable  hardship to either party. The court shall not unreasonably
  deny requests for evening hearings if such  requests  are  made  by  the
  claimant  upon  commencement  of  the  action or by the party complained
  against within fourteen days of receipt of the notice of claim.
    (c) The clerk shall furnish every claimant, upon commencement  of  the
  action,  and  every  party complained against, with the notice of claim,
  and with information written in clear and coherent language which  shall
  be prescribed and furnished by the state office of court administration,
  concerning  the  commercial claims part. Such information shall include,
  but not be limited to, the form for  certification  and  filing  by  the
  claimant  that  no  more than five such actions or proceedings have been
  instituted during  that  calendar  month,  and  an  explanation  of  the
  following  terms and procedures: adjournments, counterclaims, jury trial
  requests, evening hour requests,  demand  letters  in  cases  concerning
  consumer  transactions,  default  judgments,  subpoenas, arbitration and
  collection methods, the  responsibility  of  the  judgment  creditor  to
  collect  data  on the judgment debtor's assets, the ability of the court
  prior to entering judgment to order examination of or disclosure by, the
  defendant and restrain  him,  and  a  statement  in  Spanish  that  such
  information  is available in Spanish upon request. The information shall
  be available in English and Spanish. Large signs in English and  Spanish
  shall  be posted in conspicuous locations in each commercial claims part
  clerk's office, advising the public of its availability.
    (d) A defendant who wishes to file  a  counterclaim  shall  do  so  by
  filing  with  the  clerk a statement containing such counterclaim within
  five days of receiving the notice of claim. At the time of  such  filing


  the  defendant  shall pay to the clerk a filing fee of five dollars plus
  the cost of mailings which are required pursuant  to  this  subdivision.
  The  clerk  shall  forthwith send notice of the counterclaim by ordinary
  first  class  mail  to  the claimant. If the defendant fails to file the
  counterclaim in accordance with the provisions of this subdivision,  the
  defendant  retains  the  right  to  file  the  counterclaim, however the
  claimant  may,  but  shall  not  be  required  to,  request  and  obtain
  adjournment  of  the  hearing to a later date. The claimant may reply to
  the counterclaim but shall not be required to do so.