Commercial Division Blog

Posted: February 15, 2016 / Categories Commercial, Court Rules/Procedures

Despite Claimed Damages of $15 Million, Court Transfers Case Out of Commercial Division

On February 2, 2016, Justice Scarpulla of the New York County Commercial Division issued a decision in Sparta Commercial Services. Inc. v. Vis Vires Group Inc., 2016 NY Slip Op. 30199(U), transferring an action out of the Commercial Division notwithstanding that the complaint alleged damages of $15 million, explaining:

In its amended complaint, [the plaintiff] alleged damages in excess of $15,000,000. However, this Court is not satisfied that this case meets the $500,000 monetary threshold for the Commercial Division as set forth in 22 NYCRR 202.70(a), particularly in light of the fact that plaintiff brought this order to show cause on a $33,000 loan and in light of the fact that, through his affidavit, Seth Kramer alleges that only three loans between plaintiff and [the defendant], totaling $99,000, remain outstanding. Accordingly, I refer the action to the General Clerk's Office for reassignment to a general IAS Part.