Bill S6660-2011

Relates to the authority of a LLC to commence a commercial claim, action or proceeding under various court acts

Relates to the authority of a limited liability company to commence a commercial claim, action or proceeding.

Details

Actions

  • Apr 30, 2012: referred to judiciary
  • Apr 30, 2012: DELIVERED TO ASSEMBLY
  • Apr 30, 2012: PASSED SENATE
  • Mar 22, 2012: ADVANCED TO THIRD READING
  • Mar 21, 2012: 2ND REPORT CAL.
  • Mar 20, 2012: 1ST REPORT CAL.399
  • Mar 8, 2012: REFERRED TO JUDICIARY

Meetings

Votes

VOTE: COMMITTEE VOTE: - Judiciary - Mar 20, 2012
Ayes (20): Bonacic, DeFrancisco, Flanagan, Fuschillo, Lanza, LaValle, Little, Nozzolio, O'Mara, Ranzenhofer, Saland, Zeldin, Hassell-Thompson, Breslin, Dilan, Espaillat, Gianaris, Perkins, Serrano, Stavisky
Ayes W/R (2): Krueger, Squadron
Absent (1): Adams

Memo

BILL NUMBER:S6660

TITLE OF BILL: An act to amend the New York city civil court act, the uniform district court act and the uniform city court act, in relation to the authority of a limited liability company to commence a commercial claim action or proceeding

This is one in a series of measures being introduced at the request of the Chief Administrative Judge upon the recommendation of her Local Courts Advisory Committee.

This measure would amend the New York City Civil Court Act, Uniform District Court Act, and Uniform City Court Act to expressly authorize a limited liability company to commence a commercial claim action.

Section 1801-A of the New York City Civil Court Act, Uniform District Court Act, and Uniform City Court Act defines a commercial claim as "any cause for money only not in excess of the maximum amount permitted for a small claim in the small claims part of the court" provided "the clamant is a corporation, partnership or association." NYCCCA §1801-A(a); UDCA §1801-A(a); UCCA §1801-A(a).

A limited liability company is an unincorporated organization of one or more persons having limited liability for the contractual obligations and other liabilities of the business conducted by the business, and is an entity other than a partnership or a trust. See Limited Liability Company Law § 102(m).

Since a limited liability company is a statutory business form, there is no reason to exclude a limited liability company from the privilege to commence a commercial claim.

In addition to expressly authorizing a limited liability company to commence a commercial claim action, this measure would amend section 1809-A of each of the aforementioned Court Acts to make the prohibitions against basing a commercial claim upon an assigned claim and commencing more than five commercial claims actions per month also applicable to a limited liability company.

This measure would have no fiscal impact upon the State. It would take effect immediately.

LEGISLATIVE HISTORY: None. New proposal.


Text

STATE OF NEW YORK ________________________________________________________________________ 6660 IN SENATE March 8, 2012 ___________
Introduced by Sen. BONACIC -- (at request of the Office of Court Admin- istration) -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the New York city civil court act, the uniform district court act and the uniform city court act, in relation to the authority of a limited liability company to commence a commercial claim action or proceeding THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (a) of section 1801-A of the New York city civil court act, as amended by chapter 435 of the laws of 1992, is amended to read as follows: (a) The term "commercial claim" or "commercial claims" as used in this article shall mean and include any cause of action for money only not in excess of the maximum amount permitted for a small claim in the small claims part of the court, exclusive of interest and costs, provided that subject to the limitations contained in section eighteen hundred nine-A of this article, the claimant is a corporation, partnership, LIMITED LIABILITY COMPANY or association[,] which has its principal office in the state of New York and provided that the defendant either resides, or has an office for the transaction of business or a regular employment, within the city of New York. S 2. Section 1809-A of the New York city civil court act, as added by chapter 653 of the laws of 1987, is amended to read as follows: S 1809-A. Procedures relating to corporations, associations, insurers and assignees. (a) Any corporation, including a municipal corporation or public benefit corporation, partnership, LIMITED LIABILITY COMPANY or association[,] which has its principal office in the city of New York and an assignee of any commercial claim may institute an action or proceeding under this article. (b) No person or co-partnership, engaged directly or indirectly in the business of collection and adjustment of claims, and no corporation, LIMITED LIABILITY COMPANY or association, directly or indirectly, itself or by or through its officers, agents or employees, shall solicit, buy
or take an assignment of, or be in any manner interested in buying or taking an assignment of a bond, promissory note, bill of exchange, book debt, or other thing in action, or any claim or demand, with the intent and for the purpose of bringing an action or proceeding thereon under this article. (c) A corporation, partnership, LIMITED LIABILITY COMPANY or associ- ation, which institutes an action or proceeding under this article shall be limited to five such actions or proceedings per calendar month. Such corporation, partnership, LIMITED LIABILITY COMPANY or association shall complete and file with the clerk the required certification, provided it is true and verified as to its truthfulness, as a prerequisite to the institution of an action or proceeding in this part of the court. (d) A corporation may appear as a party in any action brought pursuant to this article by an attorney as well as by any authorized officer, director or employee of the corporation provided that the appearance by a non-lawyer on behalf of a corporation shall be deemed to constitute the requisite authority to bind the corporation in a settlement or trial. The court or arbitrator may make reasonable inquiry to determine the authority of any person who appears for the corporation in a commer- cial claims part case. S 3. Subdivision (a) of section 1801-A of the uniformed district court act, as amended by chapter 41 of the laws of 2006, is amended to read as follows: (a) The term "commercial claim" or "commercial claims" as used in this act shall mean and include any cause of action for money only not in excess of the maximum amount permitted for a small claim in the small claims part of the court, exclusive of interest and costs, provided that subject to the limitations contained in section eighteen hundred nine-A of this article, the claimant is a corporation, partnership, LIMITED LIABILITY COMPANY or association[,] which has its principal office in the state of New York and provided that the defendant either resides, or has an office for the transaction of business or a regular employment, within the district in the county where the court is located. S 4. Section 1809-A of the uniform district court act, as added by chapter 653 of the laws of 1987, is amended to read as follows: S 1809-A. Procedures relating to corporations, associations, insurers and assignees. (a) Any corporation, including a municipal corporation or public bene- fit corporation, partnership, LIMITED LIABILITY COMPANY or associ- ation[,] which has its principal office in the state of New York and an assignee of any commercial claim may institute an action or proceeding under this article. (b) No person or co-partnership, engaged directly or indirectly in the business of collection and adjustment of claims, and no corporation, LIMITED LIABILITY COMPANY or association, directly or indirectly, itself or by or through its officers, agents or employees, shall solicit, buy or take an assignment of, or be in any manner interested in buying or taking an assignment of a bond, promissory note, bill of exchange, book debt, or other thing in action, or any claim or demand, with the intent and for the purpose of bringing an action or proceeding thereon under this article. (c) A corporation, partnership, LIMITED LIABILITY COMPANY or associ- ation[,] which institutes an action or proceeding under this article shall be limited to five such actions or proceedings per calendar month. Such corporation, partnership, LIMITED LIABILITY COMPANY or association shall complete and file with the clerk the required certification,
provided it is true and verified as to its truthfulness, as a prerequi- site to the institution of an action or proceeding in this part of the court. (d) A corporation may appear as a party in any action brought pursuant to this article by an attorney as well as by any authorized officer, director or employee of the corporation provided that the appearance by a non-lawyer on behalf of a corporation shall be deemed to constitute the requisite authority to bind the corporation in a settlement or trial. The court or arbitrator may make reasonable inquiry to determine the authority of any person who appears for the corporation in a commer- cial claims part case. S 5. Subdivision (a) of section 1801-A of the uniform city court act, as amended by chapter 847 of the laws of 1990, is amended to read as follows: (a) The term "commercial claim" or "commercial claims" as used in this act shall mean and include any cause of action for money only not in excess of the maximum amount permitted for a small claim in the small claims part of the court, exclusive of interest and costs, provided that subject to the limitations contained in section eighteen hundred nine-A of this article, the claimant is a corporation, partnership, LIMITED LIABILITY COMPANY or association[,] which has its principal office in the state of New York and provided that the defendant either resides, or has an office for the transaction of business or a regular employment, within the county in which the court is located. In a city court having a basic monetary jurisdiction in civil matters of less than one thousand dollars, the commercial claims jurisdiction of such court shall be equal to its basic monetary jurisdiction. S 6. Section 1809-A of the uniform city court act, as added by chapter 653 of the laws of 1987, is amended to read as follows: S 1809-A. Procedures relating to corporations, associations, insurers and assignees. (a) Any corporation, including a municipal corporation or public bene- fit corporation, partnership, LIMITED LIABILITY COMPANY or association, which has its principal office in the state of New York and an assignee of any commercial claim may institute an action or proceeding under this article. (b) No person or co-partnership, engaged directly or indirectly in the business of collection and adjustment of claims, and no corporation, LIMITED LIABILITY COMPANY or association, directly or indirectly, itself or by or through its officers, agents or employees, shall solicit, buy or take an assignment of, or be in any manner interested in buying or taking an assignment of a bond, promissory note, bill of exchange, book debt, or other thing in action, or any claim or demand, with the intent and for the purpose of bringing an action or proceeding thereon under this article. (c) A corporation, partnership, LIMITED LIABILITY COMPANY or associ- ation[,] which institutes an action or proceeding under this article shall be limited to five such actions or proceedings per calendar month. Such corporation, partnership, LIMITED LIABILITY COMPANY or association shall complete and file with the clerk the required certification, provided it is true and verified as to its truthfulness, as a prerequi- site to the institution of an action or proceeding in this part of the court. (d) A corporation may appear as a party in any action brought pursuant to this article by an attorney as well as by any authorized officer, director or employee of the corporation provided that the appearance by
a non-lawyer on behalf of a corporation shall be deemed to constitute the requisite authority to bind the corporation in a settlement or trial. The court or arbitrator may make reasonable inquiry to determine the authority of any person who appears for the corporation in a commer- cial claims part case. S 7. This act shall take effect immediately.

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