MCA litigation — Florida
Florida businesses face MCA lawsuits filed in New York.
Florida is one of the states with the highest concentration of MCA borrowers — and MCA lawsuits filed against Florida businesses. Most of those cases are filed in New York courts, not Florida, because MCA agreements typically include New York forum selection clauses.
Request a confidential case reviewThe Florida MCA landscape
A high-volume state for MCA funding and disputes.
Florida's large small-business economy — particularly in hospitality, construction, retail, and professional services — has made it a major market for MCA funders. When Florida businesses fall behind on MCA payments, funders typically file in New York courts under the forum selection clauses in their agreements, leaving Florida business owners to navigate out-of-state litigation.
New York courts, Florida businesses
Why your Florida business is being sued in New York.
Most MCA agreements require disputes to be litigated in New York — typically Nassau County, Kings County, or Queens County Supreme Court. This is true even when the business is in Florida, the owner is in Florida, and the funding was used for Florida operations. Whether the New York forum selection clause is enforceable against a Florida defendant is a legal question that can be raised as a defense.
Defense strategies for Florida businesses
The same defenses apply regardless of where your business operates.
Florida business owners facing MCA lawsuits in New York have access to the same defense strategies as any other defendant in a New York MCA matter. These include usury and true loan recharacterization arguments under New York law, jurisdictional and venue challenges, and defenses based on the funder's conduct. The viability of any defense depends on the specific agreement and facts.
New York usury defense
Because most MCA cases are filed in New York courts, New York usury law — including the 25% criminal usury threshold — is frequently at issue. A Florida business owner can raise a New York usury defense in a New York court proceeding.
Jurisdictional challenge
A Florida business with no meaningful connection to New York may have grounds to challenge personal jurisdiction in a New York court. This is a threshold defense that must be raised promptly.
Funder conduct
Aggressive collection tactics, unauthorized debits, or misrepresentations in the funding process may give rise to affirmative defenses or counterclaims regardless of where the business is located.
Florida business facing an MCA lawsuit?
Hartman Blake represents Florida businesses in MCA matters filed in New York courts. A confidential review is the first step.
Request a confidential case reviewNo attorney-client relationship is created by submitting an inquiry. Attorney review required before representation.