INFORMATION

Our firm would be pleased to accept your claims for collection from your customers who are located in any of the five boroughs (New York, Bronx, Queens, Brooklyn and Staten Island) of New York City, and on Long Island (Nassau and Suffolk Counties) and in Westchester County. To see a map of the Counties serviced by the law firm and the Zip Codes associated with each of these counties, click here.

To introduce your firm to our office, we ask that you fax your letterhead showing your name and phone number to us at 646 349-4060 or e-mail that information to us or complete the Claim Placement form.

Upon our receipt of your letterhead, we will contact you.

We will be asking for the legal composition of your firm.

Are you an individual doing business under a trade name or are you a partnership or a corporation?

We will also be asking for the details of each claim that you want to turn over to our firm for collection.

We need:

The name, address and telephone number of each customer who you want to turn over for collection.

A statement of account showing the first and last dates of the transactions, the total billings, the total amount paid and the balance due.

For either sales or work performed, we will ask for the type of goods sold or the nature of the work performed.

The correct legal composition of the debtor. A copy of the most recent check you received from debtor will generally give this information.

A copy of a credit application, if any, signed by the debtor. During the introductory telephone call, we will advise you of our fee arrangement and the costs of suit.

Accounts turned over for collection are placed into suit immediately.

SPECIFIC INFORMATION FOR SUIT

Venue of Courts and Costs of Suit

New York City:

Claims of $25,000.00 or less are usually sued in the Civil Court of the City of New York in the County in which either the creditor or debtor has its place of business. Costs of $175.00 must be advanced by the creditor to begin the lawsuit. Claims over $25,000.00 must be sued in the Supreme Court of the State of New York in the County where either the creditor or debtor has its place of business. Costs of $500.00 must be advanced by the creditor to begin the lawsuit.

Long Island:

In Nassau and Suffolk Counties, claims of $15,000.00 or less are usually sued in one of the District Courts of the particular county in which the debtor has its place of business. Costs of $175.00 must be advanced by the creditor to begin the lawsuit. Claims over $15,000.00 must be sued in the Supreme Court of the State of New York where either the creditor or debtor has its place of business. Costs of $500.00 must be advanced by the creditor to begin the lawsuit.

Westchester County:

If the creditor has its place of business in Westchester County or if the debtor is located in the Cities of Yonkers, Mt. Vernon, New Rochelle, Peekskill, Rye or White Plains, then claims of $15,000.00 or less are usually sued in one of the City Courts in Westchester County. Costs of $175.00 must be advanced by the creditor to begin the lawsuit. Claims over $15,000.00 must be sued in the Supreme Court of the State of New York in the County where either the creditor or debtor has its place of business. Costs of $500.00 must be advanced by the creditor to begin the lawsuit.

BUT NOTE:

Venue of lawsuit:

Generally, a debt action against a debtor located outside of New York City is brought in the debtor's County of residence. If the creditor has an office in New York City, the lawsuit can be brought in one of the five Counties of New York City, depending on the County of the creditor's residence. Such a lawsuit would be commenced in the Supreme Court of one of the five Counties, irrespective of the amount of the debt. The cost advancement would be $500.00.

Many major corporations who are incorporated in states outside of New York State (foreign corporations) become authorized to do business in the State of New York by filing a certificate for that purpose with the New York Secretary of State. Each foreign corporation MUST select a county of residence. If the foreign corporation has selected one of the five counties of New York City [or Nassau or Suffolk County on Long Island, or Westchester County], then the lawsuit can be brought in the selected county.

This forces a debtor who is located in any county outside New York City [or Nassau or Suffolk County on Long Island, or in Westchester County] to litigate in New York City or the nearby counties of Nassau, Suffolk or Westchester. It places the debtor at a distinct disadvantage and it gives the creditor the advantage of suing at home and not in some distant County to which the creditor would have to travel for examinations before trial or trial.

However, if the cause of action arose in New York City AND if the amount owed to the creditor is $25,000.00 or less, the action can be brought in one of the five Civil Courts in the City, depending on the creditor's business address (where the advance costs are $175.00). "Arose in New York City" means that the contract to purchase the goods, or the delivery of the goods, took place within the City of New York.

The great advantage of a Civil Court lawsuit is speed. Once a case is noticed for trial, it will be set for trial in a few weeks in New York and in Bronx counties.

The Justices of the Supreme Courts have been vested with discretion to transfer cases of $25,000.00 or less to the Civil Court of the particular County for final disposition. This is called a 325(d) transfer. While the Civil Court would not have had original jurisdiction to hear the case, a 325(d) transfer is unfettered by this problem. The case is decided in the Civil Court. In cases under $25,000.00, where the cause of action did not arise within New York City but where the creditor has its place of business in New York City, we commence the lawsuit in the Supreme Court. As soon as the answer is served, we request a preliminary conference before the Court. Invariably, the Court usually directs a 325(d) transfer. The transfer usually takes no more than eight weeks. The creditor then gains the advantage of a speedy resolution in the Civil Court.

WARNING:

Creditors who deliver goods via a common carrier should bear in mind that some carriers do not retain signed proof of delivery for more than one year. If an account receivable for the sale of goods remains unpaid for more than six months, a creditor should immediately request a signed proof of delivery from the common carrier for each invoice that remains unpaid. After one year, proof of delivery may not be available. In a lawsuit for goods sold, the creditor must prove receipt of the goods by the debtor. If the debtor denies receipt, a creditor without signed proof of delivery runs the risk of not being able to prove sale and delivery.