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Asher v. Abbott Laboratories

Appellate Division of the Supreme Court of New York, First Department
Jan 3, 2002
290 A.D.2d 208 (N.Y. App. Div. 2002)

Summary

holding that "private persons cannot bring a class action under the Donnelly Act because the treble damages remedy provided in General Business Law § 340 is a `penalty' within the meaning of CPLR 901(b), the recovery of which in a class action is not specifically authorized and the imposition of which cannot be waived."

Summary of this case from In re Packaged Ice Antitrust Litig.

Opinion

4310N

January 3, 2002.

Order, Supreme Court, New York County (Helen Freedman, J.), entered October 12, 2000, which, in an action under General Business Law § 340 (the Donnelly Act), insofar as appealed from, denied plaintiffs' motion for class certification, unanimously affirmed, without costs.

JASON L. SOLOTAROFF, for plaintiffs-appellants.

ROBERT A. MILNE, for defendants-respondents.

KATHLEEN L. HARRIS, for Attorney General of the State of New York.

Before: Tom, J.P., Ellerin, Wallach, Rubin, Buckley, JJ.


Private persons cannot bring a class action under the Donnelly Act because the treble damages remedy provided in General Business Law § 340(5) is a "penalty" within the meaning of CPLR 901(b), the recovery of which in a class action is not specifically authorized and the imposition of which cannot be waived (Rubin v. Nine West Group, Sup Ct, Westchester County, John DiBlasi, J., 1999 N.Y. Misc. LEXIS 655, *10-14; Russo Dubin v. Allied Maintenance Corp., 95 Misc.2d 344, 348-349 [Sup Ct, N.Y. County, Hilda Schwartz, J., 1978]; Blumenthal v. American Socy. of Travel Agents, Sup Ct, N.Y. County, Arnold Fein, J., 1977 WL 18392, *3; see also, McLaughlin, Practice Commentaries, McKinney's Cons Laws of NY, Book 7B, CPLR C901:7; Cox v. Microsoft Corp., 290 A.D.2d 206 (Appeal No 4239 decided simultaneously herewith). We note the specific authorization to bring class actions on behalf of governmental entities given to the Attorney General in General Business Law § 342-b, the absence of such specific authorization in section 340(6), and the enactment of the latter provision after two courts (Blumenthal,supra; Russo Dubin, supra) had held that class actions could not be brought under the Donnelly Act because not specifically authorized (see, McKinney's Cons Laws of NY, Book 1, Statutes §§ 74, 240, 363). The conclusion that treble damages under the Donnelly Act are penal in nature is not undermined by the fact that they are mandatory, i.e., not discretionary or contingent upon a finding of bad faith, and indeed it can be argued that a statute providing for an award of multiple damages without need to prove willfulness or bad faith is more punitive than one that does require such proof.

Motion seeking leave to file an amicus curiae brief granted.

THIS CONSTITUTES THE DECISION AND ORDER OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.


Summaries of

Asher v. Abbott Laboratories

Appellate Division of the Supreme Court of New York, First Department
Jan 3, 2002
290 A.D.2d 208 (N.Y. App. Div. 2002)

holding that "private persons cannot bring a class action under the Donnelly Act because the treble damages remedy provided in General Business Law § 340 is a `penalty' within the meaning of CPLR 901(b), the recovery of which in a class action is not specifically authorized and the imposition of which cannot be waived."

Summary of this case from In re Packaged Ice Antitrust Litig.

In Asher, the First Department held that class representatives could not waive their right to treble damages under the Donnelly Act to obtain class certification.

Summary of this case from Rebibo v. Axton Owners, Inc.
Case details for

Asher v. Abbott Laboratories

Case Details

Full title:AARON ASHER, ET AL., PLAINTIFFS-APPELLANTS, v. ABBOTT LABORATORIES, ET…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Jan 3, 2002

Citations

290 A.D.2d 208 (N.Y. App. Div. 2002)
737 N.Y.S.2d 4

Citing Cases

Sperry v. Crompton Corp.

Plaintiff cannot bring a class action suit under the Donnelly Act. ( Sega v State of New York, 60 NY2d 183;…

Rebibo v. Axton Owners, Inc.

See Sperry v. Crompton Corp., 8 N.Y.3d 204, 213 (2007). Citing Asher v. Abbott Laboratories, 290 A.D.2d 208…