Key Takeaway
New York Civil Court has limited declaratory judgment powers for insurance disputes, with jurisdiction restricted to cases where the underlying amount doesn't exceed $25,000.
Understanding Civil Court’s Limited Declaratory Judgment Authority
The jurisdictional limits of New York’s Civil Court system often create confusion for practitioners handling insurance disputes. While many attorneys assume that declaratory judgment actions must be filed in Supreme Court, the Civil Court does possess specific authority to hear certain insurance-related declaratory judgment cases — but with important monetary limitations.
This jurisdictional question becomes particularly relevant in New York No-Fault Insurance Law cases, where providers frequently seek declarations regarding coverage obligations and payment responsibilities. Understanding these limits can significantly impact litigation strategy and forum selection.
The distinction is crucial because choosing the wrong court can result in jurisdictional challenges that may derail an otherwise strong case. Just as procedural missteps in other areas can prove fatal to a declaration, filing in a court without proper jurisdiction can waste valuable time and resources.
Jason Tenenbaum’s Analysis:
Five Boro Psychological Servs., P.C. v AutoOne Ins. Co., 2010 NY Slip Op 20131 (App. Term 2d Dept. 2010)
“In any event, the Civil Court would have subject matter jurisdiction in a declaratory judgment involving an obligation of an insurer in which the underlying amount sought to be recovered did not exceed $25,000.”
Dave Gottlieb at NFP has an interesting observation about this case.
Key Takeaway
The Civil Court’s declaratory judgment authority for insurance matters is specifically limited to cases where the underlying recovery amount is $25,000 or less. This threshold creates a clear jurisdictional boundary that practitioners must consider when determining the appropriate forum for insurance coverage disputes and no-fault claims.
Legal Update (February 2026): Since this 2010 analysis of Civil Court declaratory judgment authority, New York’s court system has undergone various procedural and jurisdictional modifications, including potential changes to monetary thresholds and case assignment protocols. Practitioners should verify current Civil Court jurisdictional limits and any amendments to CPLR provisions governing declaratory judgment actions, particularly as they apply to no-fault insurance disputes.
