A few years ago, in a post titled What the Commercial Division has done for us latelywe commented on a 2019 report from the Commercial Division Advisory Council, which extolled “the benefits of the Commercial Division for New York State” since its inception in 1995, including how it “made the commercial litigation process in New York more cost-effective, predictable, and timely, and thus provided a more hospitable and attractive environment for commercial litigation in New York State.
New York’s business and legal communities continue to carry the banner of the business division. And for good reason. As pointed out in a recent webinar sponsored by the New York Business Councilthe Sales Department has become a privileged body, if not the preferred forum – for the resolution of complex commercial disputes and remains available to businesses of all sizes and from all locations, including outside of New York State. Indeed, according to the Chairman of the Advisory Council, Robert L. Haig, himself a participant in the webinar:
Any company, given the choice, should seriously consider bringing its commercial dispute to New York and including a choice of court clause in its contracts, specifying the Commercial Division as the forum for resolving disputes arising from the contract.
Any business concerned about the predictability and cost of litigation should consider moving its operations, markets, and even headquarters to New York State.
Seriously? New York? After all, as noted by the moderator Heather Briccetti from the Business Council at the start of the webinar, “New York is a very challenging environment in which to do business, both in terms of taxation and regulation.” So why choose to litigate or even move your business to New York?
Well, according to the various webinar participants — including representatives of the Association of Works Councilsthe American Bar Association and several current and retired judges, including former Manhattan ComDiv Justice O. Peter Sherwood and Queens County ComDiv Justice Marguerite A. Grays – this is mainly because the commercial division is made up of sophisticated and responsive judges and court staff who have the commercial expertise required to handle a strictly commercial role, and who have developed a well reasoned and enforced set of precedents and rules in a consistent way that companies and their counsel can predictably rely on for the effective and efficient resolution of their disputes. It also doesn’t hurt that the Commercial Division remains at the forefront of courtroom technology and other procedural innovations, especially in the COVID and post-COVID era.
Sarah J Mugelgeneral counsel of National Fuel Gas Companya multi-billion dollar diversified energy company headquartered outside of Buffalo, offered an interesting perspective on what matters to companies and in-house attorneys when faced with litigation:
Like most companies, National Fuel tries to avoid litigation because of its cost and risk, and because of the diversion it causes to the non-legal employees who are involved, away from their regular duties. While there are many downsides to being involved in litigation, the process can be at least somewhat improved when the courts strive to do so. And the Commercial Division. . . has made substantial efforts to improve the litigation process, and companies generally view these efforts as successful.
The Commercial Division helps companies resolve our disputes quickly and affordably so that we can continue our business and avoid getting bogged down in litigation quagmires – which is really, even for lawyers, what we look forward to.
Building on the aforementioned 2019 ComDiv Advisory Board report, Chief Administrative Judge Lawrence K. Marks also offered an interesting perspective from an economic perspective – specifically, the economic benefits of the Commercial Division for New York City, its courts. and its citizens:
The Commercial Division is unique. . . in its ability to contribute to the development of economic activity within the State, which in turn generates tax revenue and creates jobs. These unique features benefit our entire justice system and all New Yorkers.
For example, a division or subsidiary that generates $10 billion in annual revenue could incur employee compensation costs of up to $6 billion, which would translate into annual New York tax revenue of up to $500 million. . The move to New York could also result in annual New York corporate income tax revenue of up to $50 million. For example, moving a division or subsidiary of a company to New York could result in additional New York tax revenue of up to $550 million per year. The annual operating budget for the New York State court system is currently $2.4 billion. If the benefits of greater access to the business division help persuade a company to move a $10 billion division to New York, such a move could pay for nearly a quarter of the company’s entire annual operating costs. our justice system.
So this is it. Valid reasons – off the bench, so to speak – to move your business at rather than of New York, even in this era of mass exodus to more tax-friendly states. We have already said it; we will say it again: Bring you to the commercial division!
#business #dispute #travel #York #Supra