New Rules In New York Mean Speedy Trials For Commercial Disputes (But At A Price)

The Commercial Division of the Supreme Court of New York State is the branch of the state's trial court system that adjudicates a large variety of commercial disputes.1 In 2012, a "Task Force on Commercial Litigation" recommended changes to the Commercial Division rules to better serve the needs of the business community and the resolution of commercial disputes in New York state courts. As the Task Force recognized, the "judges of the Commercial Division adjudicate thousands of cases and motions that include some of the most important, complex commercial disputes being litigated anywhere."2 Several recent amendments to the Rules for the Commercial Division of the State of New York are aimed at easing the burdens associated with complex commercial disputes and ensuring the state's courts remain an attractive forum for the resolution of business disputes. The recent changes to the Commercial Division rules include (i) new procedures offering parties accelerated adjudication, and (ii) new rules drastically streamlining costly and time-consuming discovery procedures. While these rules have the potential to significantly reduce the cost, scope, and length of business litigation in New York, only time will tell whether they will actually transform New York's Commercial Division into a so-called "rocket docket" jurisdiction. In the meantime, litigators and transactional lawyers alike should familiarize themselves with these new rules, as many come with significant strings attached. For example, parties who choose to proceed under the Commercial Division's new accelerated adjudication procedures—either at the onset of litigation or in contractual provisions—could be waiving significant rights, and they will therefore need to carefully weigh whether it is in their interest to agree to these procedures. Expediting and reducing costs in cases before New York's Commercial Division, it seems, comes at a price.

Agreeing to Accelerated Adjudication Procedures

Newly implemented Commercial Division Rule 9 offers parties accelerated adjudication procedures. The parties may agree to resolve any disputes, other than class actions, pursuant to these accelerated procedures.3 Under the new rule, parties agree to be trial-ready within nine months, effectively compressing all pretrial proceedings, including discovery, pretrial motions. and mandatory mediation, into a nine-month period.4 Rule 9 has several notable features and strings attached, however. First, the parties must specifically choose to have these procedures...