On January 28, 2025, New York State’s Chief Administrative Judge signed Administrative Order #38-2025, setting in motion significant changes for the Commercial Division’s jurisdiction over cases seeking only equitable or declaratory relief. Here’s what you need to know:
What’s Changing?
Until now, parties seeking treatment in the Commercial Division simply had to certify that their case was “presumptively commercial” according to the Rules for Commercial Division assignment. However, effective March 31, 2025, any case seeking exclusively equitable or declaratory relief must now also meet a county-specific monetary threshold. For Westchester County, that threshold is set at $100,000.
How Is the Threshold Determined?
The Court will assess whether a case meets the monetary requirement by considering the “value of the object of the action.” Under the new rule, this value is defined as the greatest of the following: (1) the value of the suit’s intended benefit; (2) the value of the right being protected; and (3) the value of the injury being averted.
This assessment is based on the details provided in the Commercial Division addendum and the operative pleadings at the time the party applies for Commercial Division assignment.
Why the Change?
The amendment, proposed by the Commercial Division Advisory Council, aims to streamline the Division’s caseload. By requiring a monetary threshold even for cases solely seeking equitable or declaratory relief, the Division hopes to reduce the number of less resource-intensive cases. This shift is intended to allow the Division to focus more effectively on complex and high-stakes litigations that demand its specialized resources.
Impact on Practitioners and Litigants
- For Attorneys: When filing for Commercial Division assignment, it will no longer be sufficient to simply certify a case as “presumptively commercial.” Attorneys must now carefully evaluate the monetary value of the case’s benefits or potential injury, ensuring that they meet the set threshold for Westchester County.
- For Litigants: Parties must be prepared to demonstrate that their case’s “object” meets or exceeds the monetary requirement, which may influence how claims are presented and strategized in the pleadings.
Final Thoughts
This administrative amendment is expected to refine the scope of cases accepted by the Commercial Division. By imposing a clear monetary benchmark, the Division reinforces its commitment to managing its resources effectively and addressing only those cases that genuinely require its specialized attention.
Stay tuned for further updates as the implementation date approaches, and feel free to reach out with any questions or comments regarding this development.
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