Money Damages in Civil Lawsuits in New York

Understanding Money Damages

When most people think of a lawsuit, they imagine one party suing another “for money.” In civil litigation, that financial compensation is called money damages. A plaintiff brings a lawsuit seeking money damages when they believe they have suffered financial harm because of another party’s actions. Unlike criminal cases, where the government prosecutes violations of law, civil cases focus on private disputes — most often about contracts, property, or personal/business losses.

According to the New York State Unified Court System, civil cases allow parties to “seek a legal remedy, usually in the form of money damages” when their rights have been violated. The purpose of these awards is to make the injured party “whole” again, as much as possible, through financial compensation.

Types of Money Damages in New York Lawsuits

Not all damages are the same. Courts in both state and federal systems may award different categories of money damages depending on the nature of the claim:

• Compensatory damages: To reimburse actual financial losses, such as lost profits, repair costs, or medical expenses.
• Consequential damages: Losses indirectly caused by the defendant’s conduct, such as business opportunities lost because of a breach of contract.
• Punitive damages: Awarded in limited cases to punish wrongful behavior and deter future misconduct.
• Nominal damages: A symbolic sum awarded when a legal right was violated, but no significant financial harm occurred.

Understanding which damages are available in your case is critical, as it impacts both the value of your claim and the cost-benefit analysis of pursuing litigation.

Where Civil Lawsuits Are Filed: State vs. Federal Courts

Civil money damage claims in New York may be brought in either state court or federal court, depending on the facts of the case:

• State Court: The Supreme Court of the State of New York (which is actually the trial-level court for major civil matters) hears cases involving damages above $50,000. Smaller cases may go to Civil Court or Small Claims Court.
• Federal Court: The United States District Courts hear civil cases when there is either (1) a federal question, or (2) diversity of citizenship between the parties and the damages exceed $75,000. Learn more from the U.S. Courts.

The choice of forum can dramatically affect procedure, timing, and cost. Our firm regularly litigates in both New York Supreme Courts and federal courts all over the State of New York

Is Litigation Worth It? Our Firm’s Monetary Threshold

Civil lawsuits are serious undertakings. While it is possible to sue for almost any amount of money, litigation in New York can be time-intensive and expensive. Between filing fees, discovery costs, expert witnesses, depositions, and trial preparation, the cost of litigation can easily run into tens of thousands of dollars initially.

For that reason, our firm generally prosecutes and defends cases when the amount at stake exceeds $100,000. This guideline helps ensure that the potential recovery (or the financial exposure if you are defending) justifies the cost of hiring experienced trial counsel. Before clients retain us, we have serious conversations as to the cost estimate and whether it is worth it to go with us.

• If your case is under $100,000:
  • Small Claims Court in New York City handles claims up to $10,000 (NYC Civil Court).
  • Civil Court of the City of New York hears cases up to $50,000.
  • Other options, such as arbitration or mediation, may also be cost-effective.

By contrast, if your dispute involves more than $100,000, our firm has the experience, resources, and courtroom skill to represent you effectively and fight for the best possible outcome.

Examples of Cases Involving Money Damages

Our practice includes representing plaintiffs and defendants in complex, high-value civil disputes, such as:

• Breach of contract: When one party fails to perform under a contract, leading to significant financial loss.
• Business disputes: Shareholder, partnership, or vendor conflicts involving substantial damages.
• Commercial torts: Fraud, misrepresentation, or interference with contractual relations.
• Real estate litigation: High-value property damage or contract enforcement claims.
• Personal and property claims: Serious losses requiring substantial monetary recovery.
• Cases tied to injunctive relief: Where forcing a party to do something or stopping an action is tied to significant financial harm.

Why Choose Our Firm

Choosing the right attorney for a civil money damages case is one of the most important decisions you can make. Our firm offers:

• Deep experience: We have litigated high-stakes cases in both New York Supreme Courts and federal courts.
• Practical advice: We provide an upfront assessment of whether litigation makes financial sense.
• Client-focused strategy: We align legal strategy with your business and financial goals, not just the desire to “win at all costs.”
• Trial readiness: We prepare every case as though it may go to trial, which often strengthens settlement negotiations.
• Promises: We do not make promises as to outcome or timeline. Certainly at the outset, litigation is too variant to be able to forecast these with any accuracy.

As the New York State Bar Association notes, “civil litigation is the process of resolving disputes through the court system.” Our role is to make that process as effective and financially sound as possible for clients with substantial claims.

Frequently Asked Questions

Contact Us

If you are considering filing or defending a civil lawsuit in New York with a substantial money claim, we encourage you to contact our office for a consultation. Our attorneys will evaluate your case honestly, explain your options, and help you decide whether pursuing litigation is in your best financial interest. Call (212) 537-6612.