The chief judge of the court of appeals may promulgate rules for the arbitration of claims for the recovery of a sum of money not exceeding six thousand dollars, exclusive of interest, pending in any court or courts except the civil court of the city of New York, and not exceeding ten thousand dollars, exclusive of interest, pending in the civil court of the city of New York. Such rules must permit a jury trial de novo upon demand by any party following the determination of the arbitrators and may require the demander to pay the cost of arbitration; and shall also provide for all procedures necessary to initiate, conduct and determine the arbitration. A judgment may be entered upon the arbitration award. The rules shall further provide for the recruitment and qualifications of the arbitrators and for their compensation; except that such rules may authorize use of judicial hearing officers as arbitrators. All expenses for compensation, reimbursement and administration under this rule shall be a state charge to be paid out of funds appropriated to the administrative office for the courts for that purpose.
R 3405.Arbitration of certain claims
Article 34. Calendar Practice; Trial Preferences · Last amended 1992 · Last verified July 21, 2026
In one sentenceCPLR 3405 authorizes the chief judge to set up a compulsory arbitration program for smaller money claims, capped at six thousand dollars in most courts and ten thousand dollars in New York City Civil Court, with a right to a full jury trial for anyone unhappy with the arbitrator's decision.
Full Text of CPLR 3405
Plain-English Summary
CPLR 3405 lets the chief judge of the Court of Appeals promulgate rules sending certain money claims to arbitration before they reach trial. The dollar caps are modest: six thousand dollars, not counting interest, for claims pending in most courts, and ten thousand dollars for claims pending in the New York City Civil Court.
Losing the arbitration is not the end of the case. Any party can demand a full jury trial after the arbitrator decides, and the rules may require the party demanding that trial to cover the cost of the arbitration. If no one demands a new trial, a judgment can be entered directly on the arbitrator's award.
The rules adopted under this section also cover how arbitrators are recruited, what qualifies them, and how they are paid, and they allow judicial hearing officers to serve in that role. The state, not the parties, foots the bill for compensation, reimbursement, and administration, funded through the office that administers the courts.
Frequently Asked Questions
What is compulsory arbitration in New York civil court?
It's a program authorized by CPLR 3405 in which smaller money claims are arbitrated before trial, with either side free to demand a jury trial afterward if dissatisfied with the result.
What is the dollar limit for mandatory arbitration under CPLR 3405?
Six thousand dollars, exclusive of interest, for claims pending in most courts, and ten thousand dollars, exclusive of interest, for claims pending in the New York City Civil Court.
Can I get a jury trial after losing at mandatory arbitration in New York?
Yes. CPLR 3405 requires the rules to permit a trial de novo by jury upon demand by any party following the arbitrator's determination.
Who pays for a jury trial demanded after court-ordered arbitration in New York?
The rules adopted under CPLR 3405 may require the party who demands the new trial to pay the cost of the arbitration that preceded it.
Who can serve as an arbitrator under New York's mandatory arbitration program?
CPLR 3405 lets the rules authorize judicial hearing officers to serve as arbitrators, alongside whatever recruitment and qualification standards the rules set.
Amendment History
Add, L 1978, ch 156, § 11; amd, L 1990, ch 30, § 2; L 1992, ch 55, § 404, eff April 10, 1992.
Source & verification. Provision text, History, and Advisory
Committee Notes are reproduced verbatim from the Consolidated Laws of New York.
Last verified July 21, 2026.
· Official source
Also known as: mandatory arbitration New York small claimscompulsory arbitration program NY courtstrial de novo after arbitration New YorkNew York City Civil Court arbitration limitcourt-annexed arbitration New Yorkarbitration of small money claims NY