Embracing Technology Disputes and Enhancing Efficiency with Referee Appointments
A recently issued Administrative Order by the Chief Administrative Judge of the Courts (AO/77/24, dated February 14, 2024) brings two important changes to the Commercial Division Rules that will affect case jurisdiction and case management.
What’s New?
Section 202.70(b)(1) of the Uniform Rules for the Supreme and County Courts has been amended to explicitly include “technology transactions and/or commercial disputes involving or arising out of technology” among the examples of commercial cases eligible for Commercial Division treatment. This change confirms the Division’s authority to handle disputes where technology plays a central role.
Why This Change?
In its accompanying memorandum, the Commercial Division Advisory Council emphasized that technology is an increasingly vital element in modern business. With New York positioned as both a financial and technology hub, the amended rule ensures that the Commercial Division’s sophisticated expertise is leveraged for disputes arising from technology-related business transactions. The memorandum notes that several other states’ business courts have already embraced this approach, underscoring the importance of a clear statement regarding the Division’s jurisdiction over technology disputes.
Introduction of Commercial Division Rule 9-b – The Referee Option
What’s New?
The new Rule 9-b, added to Section 202.70(g) of the Rules, provides that “on consent of the parties, and with the agreement of the Court, any person may be appointed by the Court to act in place of the assigned Supreme Court Justice, to determine any or all issues or to perform any act, with all the powers of the Supreme Court.” This innovative provision aims to offer an alternative mechanism for resolving complex issues without overburdening the judicial docket.
Why Introduce Referees?
According to the accompanying memorandum from the Commercial Division Advisory Council, the use of referees has been underutilized in New York. Referees—particularly experienced private practitioners—can efficiently handle numerous or complex issues in litigation, such as cases with multiple emergency rulings or extensive procedural orders. By delegating certain adjudicative functions, the Division seeks to expedite case resolution and preserve judicial resources for the most resource-intensive disputes.
Final Thoughts
These amendments signal a proactive effort by the Commercial Division to modernize its practices and to ensure that its jurisdiction reflects today’s business realities. By explicitly embracing technology-related disputes and introducing a flexible referee mechanism, the Division reinforces its commitment to efficiency and to resolving complex commercial litigation in a timely manner.
Stay tuned for further insights as these changes take effect, and please feel free to reach out with questions on these developments.
Sources: Administrative Order AO/77/24 ; Commercial Division Advisory Council Memoranda on technology and referees.