Here at New York Commercial Division Practice, we make a point of highlighting the advantages of practicing in the Commercial Division. For example, in Have Commercial Dispute, Will Travel (to New York) | New York Commercial Division Practice, we discussed the reasons why practitioners and their clients are (or should be) willing to travel to New York from out of state (or even internationally) to have their commercial disputes resolved. Similarly, in Commercial Litigation in New York State Courts, 5th Edition, Chapter 39, “Practice Before the Commercial Division”: A Review | New York Commercial Division Practice, we provided a detailed analysis of the practices and procedures of the Commercial Division as a choice-worthy venue for litigation. Among other things, the Commercial Division’s status as one of the premier venues for complex business litigation also has the welcome consequence of being a major driver of New York’s economic growth.
That’s the message of a recent article titled “NYSBA Works To Bring Hundreds of Millions of Dollars in Legal Fees to N.Y.,” in which NYSBA President Domenick Napoletano discusses the collaborative efforts of the NYSBA and the Commercial Division Advisory Council to attract commercial litigation to New York.
This initiative is designed to benefit both NYSBA members and the state’s economy, as attracting a larger volume of commercial litigation to New York creates more opportunities for practitioners (and industry-adjacent experts, consultants, vendors, etc.) to engage in high-value legal work by bringing hundreds of millions of dollars in legal fees into the state.
For instance, the 2011 Final Report by the NYSBA Task Force on New York Law in International Matters noted the significant impact on law-firm revenue if the volume of business disputes were to increase:
“[I]f the business of dispute resolution in New York were to increase by 10%-20%, it could produce approximately $200 to $400 million in incremental revenues annually for law firms in New York.”
This projection underscores the substantial financial gains that could be realized with even a modest inflow of dispute resolution to New York. Notably, the Task Force’s projected influx of hundreds of millions of dollars in legal fees was anticipated over 13 years ago, even before the establishment of the Commercial Division Advisory Council. Today, the Advisory Council’s goals are much higher.
So how are the most influential members of the NYSBA working to drive increased litigation traffic to New York?
One way is by reemphasizing the Commercial Division’s well-earned reputation. As Mr. Napoletano notes, “[t]he Commercial Division is renowned as one of the world’s most efficient venues for the resolution of commercial disputes. The excellent reputation of the Commercial Division attracts commercial litigation to New York State which might otherwise be brought in other states or countries.”
In addition, the NYSBA is using a variety of resources, including an informative film (see https://vimeo.com/195552034) and informational flyers (see Commercial-Division-Advisory-Council-BCNYS-Flyer.pdf) to inform businesses about the advantages of litigating in New York.
This initiative is a strategic move that is expected to have a far-reaching impact on the economic landscape of New York, anticipated not only to generate substantial revenue for law firms but also to attract and retain businesses, which in turn contributes to job creation and tax-revenue growth in the state.
The Proclamation issued by the New York City Council in December 20, 2018, underscored the significant value of the Commercial Division, stating that “New York owes much of its world-class status as an economic engine to its world-class court: the Commercial Division of the New York Supreme Court.” The Proclamation further emphasizes that:
“The Commercial Division is uniquely qualified to increase taxable revenue for the City of New York while stimulating job growth. It strengthens New York City’s ability to attract and retain businesses, which add jobs, fuel demand for real property, and increase tax revenue. The tax revenues from local businesses also provide financial support for the New York State judicial system[.]”
In sum, the NYSBA and the Commercial Division Advisory Council continue to collaborate in making New York a premier destination for commercial litigation. This should be welcome news to us all, as their initiative not only benefits lawyers and law firms but the state’s economy as a whole.