Source: https://iclg.com/practice-areas/litigation-and-dispute-resolution/litigation-and-dispute-resolution-2017/usa-new-york
Timestamp: 2017-09-21 12:13:32
Document Index: 720703761

Matched Legal Cases: ['§ 1200', '§ 1200', '§ 488', '§ 50', '§ 130', '§ 130', '§ 753']

Litigation & Dispute Resolution 2017 | Laws and Regulations | USA – New York | ICLG
Pleadings: Parties’ claims and defences are set forth in pleadings (e.g., a complaint, which sets forth the plaintiff’s statement of claims, and an answer, which is defendant’s response to plaintiff’s statement of claims and its statement of defence).
In New York, “parties to a contract may freely select a forum which will resolve any disputes over the interpretation or performance of the contract”. Brooke Grp. v. JCH Syndicate 488, 87 N.Y.2d 530, 534 (1996). A contract’s forum selection clause “is prima facie valid and enforceable unless it is shown by the challenging party to be unreasonable, unjust, in contravention of public policy, invalid due to fraud or overreaching, or it is shown that a trial in the selected forum would be so gravely difficult that the challenging party would, for all practical purposes, be deprived of its day in court”. KMK Safety Consulting, LLC v. Jeffrey M. Brown Assocs., Inc., 72 A.D.3d 650, 650 (2d Dep’t 2010).
Under the New York Rules of Professional Conduct, codified at 22 N.Y.C.R.R. § 1200.0,“a lawyer shall not make an agreement for, charge, or collect an excessive or illegal fee or expense”. 22 N.Y.C.R.R. § 1200.0 (Rule 1.5(a)). When determining whether a fee is excessive, a number of factors are considered as set forth in the rule. Id. Contingency fees are allowed except in certain circumstances.
New York prohibits assignment of claims where the claims are acquired solely for the purpose of making money by litigating the claim. See N.Y. Judiciary Law §§ 488-489 (codifying the ancient doctrine of champerty); Trust for the Certificate Holders of the Merrill Lynch Mortg. Investors, Inc. Mortg. Pass-Through Certificates, Series 1999-C1 v. Love Funding Corp., 13 N.Y.3d 190, 199 (2009) (“The champerty statutes are directed at preventing the strife, discord and harassment that would be likely to ensue from permitting attorneys and corporations to purchase claims for the purpose of bringing actions thereon.” (internal quotations omitted)).
See response to question 1.6 regarding litigation funding.
Notice is generally not required to initiate a lawsuit. However, notice is required to commence an action for personal injury, wrongful death or damage to real or personal property against the state of New York, local governments (county, city, town, or village), and many government agencies. N.Y. Gen. Mun. § 50-e. Such notice must be given within a fixed deadline after the event giving rise to the lawsuit. Id. Pre-suit notice may also be required in other circumstances, including, for example, pursuant to a contract between the parties. In medical malpractice cases, attorneys for the plaintiff are required to attach a certificate of merit to the complaint declaring that he or she has consulted with a physician and that there is a reasonable basis for the commencement of the action. CPLR 3012-a.
Generally, contract actions are subject to a six-year statute of limitations. CPLR 213(2). However, contracts for the sale of goods, which are governed by New York’s Uniform Commercial Code, are subject to a four-year statute of limitations. U.C.C. Law 2-725. Fraud claims must be commenced within the greater of six years from the date the cause of action accrued or two years from the time the fraud was discovered, or could with reasonable diligence have been discovered. CPLR 213(8). Generally, claims relating to injury to property are subject to a three-year statute of limitations. CPLR 214(3). Professional malpractice claims (except for medical, dental and podiatric malpractice claims) are also subject to a three-year limitations period. CPLR 213(6). Actions on a money judgment are subject to a 20-year statute of limitations. CPLR 211(b).
A civil action is initiated by filing with the clerk of the appropriate court either a: (i) summons and complaint; or (ii) summons with notice, and paying all associated fees. CPLR 304. In limited circumstances, an action can be initiated by filing a summons and motion for summary judgment in lieu of complaint or commencing a special proceeding by petition. CPLR 3213, 402. Initiating papers generally must be served within 120 days after filing.
On motion by a party (or a non-party with interest in the property involved), a court may order that a temporary receiver take possession of and preserve designated property during the pendency of the action. See CPLR 6401. Such a remedy is appropriate on a showing that “there is danger that the property will be removed from the state, or lost, materially injured or destroyed”. Id.
All pleadings must contain plain and concise statements in consecutively numbered paragraphs, and each paragraph should contain (if practicable) a single allegation. CPLR 3014. Each cause of action (or defence) should be stated separately; alternative (and inconsistent) causes of action (or defences) may be pleaded. CPLR 3014. The CPLR provides that a document attached to the pleading is part of the pleading for all purposes. CPLR 3014. A complaint, counterclaim, cross-claim, interpleader complaint, and third-party complaint must contain a demand for relief, which may be pleaded in the alternative. CPLR 3017.
While New York courts allow most causes of action to be pleaded generally, certain causes of action (e.g., fraud and libel) and some defences (e.g., a denial of performance or occurrence of a condition precedent under a contract) require additional specificity. CPLR 3015, 3016. When a party to an action is a corporation, the complaint must specify the corporation’s place of incorporation. CPLR 3015.
New York allows a party to amend its pleading once without leave of court: (i) within 20 days of service; (ii) any time before the period for responding to the pleading expires; or (iii) within 20 days after service of a responsive pleading. CPLR 3025(a). A party may amend or supplement its pleadings at any time by leave of court (which “shall be freely given upon such terms as may be just”) or by stipulation of the parties, and the court may permit pleadings to be amended before or after judgment to conform them to the evidence. CPLR 3025(b)-(c). After a party serves an amended or supplemented pleading, the responding party typically has 20 days to respond. CPLR 3025(d).
A party may withdraw any claim, counterclaim, cross-claim, or third-party claim without permission from the court by serving a notice of discontinuance any time before a responsive pleading is served or, if no responsive pleading is required, 20 days after the initial pleading was served. CPLR 3217(a)(1). If a responsive pleading has been filed, or the 20-day period has elapsed, discontinuance is permitted by stipulation only. CPLR 3217(a)(2). If the parties cannot agree to a stipulation, a party seeking to withdraw a claim must obtain a court order. CPLR 3217(a)(3).
If a defendant does not move to dismiss the complaint, or the motion to dismiss is denied, the defendant must file a responsive pleading responding to each paragraph of a plaintiff’s complaint and containing any affirmative defences the defendant may have. CPLR 3018. Defendants may bring counterclaims, which are permissive, (not mandatory), or cross-claims. CPLR 3019.
A defendant is in default if it fails to “appear, plead or proceed to trial”. CPLR 3215. Within one year of the default, the plaintiff may apply to the clerk (if the plaintiff’s claim is for a sum certain or can be computed with certainty) or the court (if it is not a case where the clerk can enter judgment) for a default judgment. Id.
New York courts are permitted, either on their own initiative or pursuant to a motion filed by a party, to impose sanctions for frivolous conduct (as defined in 22 N.Y.C.R.R. § 130-1.1) in the form of costs and reasonable attorney fees. 22 N.Y.C.R.R. §§ 130-1.1, 130-1.2. Courts may also impose sanctions if a party fails to comply with an order compelling discovery. CPLR 3126. The court also has the power to hold parties in civil contempt pursuant to New York Judiciary Law § 753.
New York permits broad discovery of “all matter material and necessary in the prosecution or defence of an action, regardless of the burden of proof”. CPLR 3101. Methods of discovery include written interrogatories, discovery and inspection of documents or property, physical and mental examination of persons, requests for admission, depositions, demands for addresses, and subpoenas to non-parties. CPLR 3102, 2301.
“In New York, the general rule is that all relevant evidence is admissible unless its admission violates some exclusionary rule. Evidence is relevant if it has any tendency in reason to prove the existence of any material fact”. People v. Scarola, 71 N.Y. 2d 769, 777 (1998) (internal citations omitted). In addition, relevant evidence may be excluded at the court’s discretion if its probative value would be outweighed “by the danger that it [would] unfairly prejudice the other side or mislead the jury”. Id.
Examples of types of evidence that are generally not admissible include privileged information; hearsay (with numerous exceptions set forth in the CPLR and case law); evidence of liability insurance; and offers to compromise.
In cases outside of the Commercial Division, parties must generally identify any expert witness they intend to call at trial and “disclose in reasonable detail the subject-matter on which each expert is expected to testify, the substance of the facts and opinions on which each expert is expected to testify, the qualifications of each expert witness and a summary of the grounds for each expert's opinion”. CPLR 3101(d)(1). Absent a court order, in general, expert reports are not required to be exchanged by the parties, nor are experts subject to deposition. Id.
CPLR Article 53 applies to any foreign judgment that is final, conclusive, and enforceable where rendered, and provides that such judgments will be recognised and enforced except in limited, specified circumstances. CPLR 5302-5304. Foreign arbitration awards are recognised and enforced in New York pursuant to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which provides for the enforcement of arbitration awards of more than 145 countries, except in limited circumstances as set forth in the Convention.