Commercial Litigation: Frequently Asked Questions

18 to 36 months is typical for a commercial case in New York Supreme Court from filing through trial. Cases in the Commercial Division may move faster due to dedicated judges, but discovery disputes and motion practice can extend timelines. Many cases settle before trial.

The Commercial Division is a specialized part of New York Supreme Court that handles complex business disputes. Cases must meet a minimum amount-in-controversy threshold, which varies by county: $500,000 in New York County (Manhattan), $100,000 in Kings County (Brooklyn), and $50,000 in several other counties.

Source: 22 NYCRR 202.70(a); Rules of the Commercial Division

6 years from the date of breach for written contracts. Oral contracts also have a 6-year limitations period in New York. The clock starts running when the breach occurs, not when you discover it, with limited exceptions for fraud-based claims.

Source: NY CPLR 213(2)

Only if your contract includes an attorney fees provision or a specific statute authorizes it. New York follows the American Rule, meaning each side pays its own legal fees unless there is a contractual or statutory basis for shifting fees. Always check your agreement for a fee-shifting clause.

A fiduciary duty claim arises when someone in a position of trust, such as a business partner, corporate officer, or managing member, acts in their own interest instead of the interest of the person or entity they owe the duty to. Remedies can include money damages, disgorgement of profits, and equitable relief.

Federal court requires either diversity of citizenship (parties from different states and over $75,000 in dispute) or a federal question. State court has broader jurisdiction and no minimum amount for general commercial disputes. The Commercial Division in state court is often preferred for complex New York business cases.

Source: 28 USC 1332 (Diversity Jurisdiction)

A preliminary injunction is an emergency court order that prevents a party from taking certain actions while the lawsuit is pending. To obtain one in New York, you must show a likelihood of success on the merits, irreparable harm without the injunction, and that the balance of equities favors you.

Source: NY CPLR 6301

Yes. A partner who diverts company funds or opportunities is breaching their fiduciary duty. You can bring claims for breach of fiduciary duty, conversion, unjust enrichment, and an accounting. Courts can order disgorgement of stolen funds and appoint a receiver to protect company assets.

Source: NY Partnership Law 43

6 years from the date the fraud was committed, or 2 years from when the fraud was discovered or should have been discovered, whichever is later. This discovery rule gives plaintiffs additional time when fraud was concealed.

Source: NY CPLR 213(8); CPLR 203(g)

Filing fees in New York Supreme Court start at $210 for cases under $50,000 and go up to $8,640 for unlimited jurisdiction cases in the Commercial Division. Attorney fees, discovery costs, and expert witnesses are the largest expenses. Many attorneys offer alternative fee arrangements for commercial matters.

Source: CPLR 8018; 22 NYCRR 202.70

Tortious interference occurs when a third party intentionally causes one party to breach an existing contract, resulting in damages. In New York, you must prove: a valid contract existed, the defendant knew about it, the defendant intentionally caused the breach, and you suffered damages as a result.

A partnership can be dissolved voluntarily by agreement or by court order under NY Partnership Law 63. Judicial dissolution is available when a partner's conduct prejudicially affects the business, when a partner willfully breaches the partnership agreement, or when the business can only operate at a loss.

Source: NY Partnership Law 62, 63

Yes. A TRO can be granted on an emergency basis, sometimes within hours, to prevent immediate harm such as asset dissipation, trade secret theft, or destruction of evidence. TROs are temporary and typically last only until a hearing can be held on a preliminary injunction motion.

Source: NY CPLR 6313

An accounting is an equitable remedy where the court orders one party to disclose all financial transactions related to the business. It is commonly used in partnership disputes, LLC member disputes, and cases involving fiduciaries who controlled company finances and refused to provide transparency.

Liquidated damages are a pre-agreed amount specified in the contract as the remedy for breach. New York courts enforce liquidated damages clauses if the amount is a reasonable estimate of anticipated damages and actual damages would be difficult to calculate. Courts will strike clauses that function as penalties.