New York Commercial Division Now Requiring Mandatory Settlement Conferences

New York State Chief Administrative Judge Lawrence K. Marks has ordered the implementation of new Commercial Division Rule 30 which requires the scheduling of mandatory settlement conferences.   The Commercial Division Advisory Council (CDAC) advocated heavily for requiring mandatory settlement conferences.

Parties will now be required to appear for a settlement conference after the note of issue is filed.  In New York State Court actions, the filing of the note of issue signifies to the Court that all discovery has been completed and the matter is ready for trial.  The previous rule encouraged the parties to attend voluntary settlement conferences, but it was not required.  Now, a settlement conference is mandatory and may be held by the assigned judge, a judicial hearing officer, special referee, a neutral selected from the Court’s neutral roster, or through a private mediator agreed to by the parties.

The new rule took effect on February 1, 2022.   The Commercial Division is hopeful that the implementation of the new settlement conference requirement will encourage resolution without the parties having to incur the significant costs associated with proceeding to trial.  To read a copy of the new rule, click here.

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