Where the case belongs
In New York, the right court depends largely on the amount at stake and the parties. Larger claims typically go to the state Supreme Court, which is the general trial court, and in several counties qualifying business cases can be assigned to the Commercial Division. Smaller claims may belong in a local civil court or small claims part, with simpler procedures. Federal court is sometimes available when the parties are from different states and the amount is large enough. Before choosing, read the contract for a forum selection or arbitration clause, which may require a particular court or keep the case out of court entirely. A clause choosing another state's law does not always mean the case must be filed there.
What you will need to prove
A breach of contract suit generally asks the court to compare what the agreement required with what each side actually did, and then to measure what the failure cost you. Damages are often the hardest part to establish with precision, and courts tend to reject figures that rest on speculation, especially for lost profits from a new business. Organize the agreement, invoices, payment records, communications, and calculations showing how you arrived at the amount you are claiming. Expect the other side to argue that you breached first, failed to limit your losses, or waived the problem by continuing the relationship. The process usually includes an exchange of documents and testimony, often followed by motions and settlement discussions.
Timing and collection
There is a deadline for filing a contract claim, and in New York it generally runs from the date of the breach, not from when you discovered it. Some contracts shorten that period, and courts often enforce those provisions if they are reasonable. Before investing heavily in a case, consider whether the defendant can pay a judgment, since collecting from a business with few assets can be difficult. Some cases warrant early steps to protect assets, although courts grant those only in limited situations. Before you file, we review the contract and your damages, confirm the deadline, and discuss whether the likely recovery justifies the cost of litigation.
