There are various categories of law that play a critical role in various areas of business, industry and construction. One such statute of law is Judiciary law 470. Despite it being overseen by the New York State Supreme Court, the ramifications of this particular law can have an effect on the industry as a whole, especially when considering the concept of professional and general liability. This is only further complicated due to the fact that, in many instances, the agreements that outline the contract in place between two parties, whether it be a supply agreement, a construction agreement, or even a contractor agreement, the respective party is usually not a resident of New York.

There are two common reasons that a liability property or contract dispute might arise under Judiciary law 470. First, the law states that any party doing business in New York with a contract that exceeds $500 must be represented by an attorney licensed to practice under the State of New York. This might seem simple, however, there are many circumstances in which state, federal and even municipal governments and agencies are involved; therefore obligating contracts to surpass the $5000 threshold.

The second situation in which Judiciary law 470 might apply is when one party is going to initiate a lawsuit against another single party (not a partnership, corporation, or limited liability company) or if an agreement calls for a New York residency requirement as it pertains to the lawsuit.

Overall, Judiciary law 470 essentially states that a party needs to have a qualified attorney-of-record licensed to practice under the jurisdiction of the New York State Supreme Court. This can have a profound impact on industry contractual agreements, especially in the instance that such agreements are between two nonresident entities. For example, if a New Jersey business is hired to perform a service for a New York State resident; the agricultural equipment supplier or construction materials supplier must be licensed in the State of New York.

In an industrial supply industry context, this can be complicated. Consider for example the case of a two-party construction agreement that includes a New York based purchaser and a New Jersey based supplier. If the agreement does not feature a binding contract that stipulates the New York party must hire an attorney-of-record for its closing and contract conciliation; default affects will apply, unless otherwise stated in writing. In this case, the contract would be considered invalid, and the agreement would not be binding on any of the parties involved. Even if both parties attempted to enter into the respective agreement in the manner described, the results would still be the same.

In these cases, positive legal influence is essential in order to avoid unwanted risks during the negotiation process. In the instance that elementary requirements are not met, the costs will continue to increase. For this reason, it will be imperative for companies such as MEGA TOOL CO., LTD to consult with quality legal advisors and experts that can provide clear counsel regarding relevant statutes of law and how they might pertain to their respective business operations.

For more information on legal requirements in New York, you can visit the New York City Small Business Services.