Beslity v. Manhattan Honda

120 Misc. 2d 848, 467 N.Y.S.2d 471, 1983 N.Y. Misc. LEXIS 3809
CourtAppellate Terms of the Supreme Court of New York
DecidedMay 10, 1983
StatusPublished
Cited by17 cases

This text of 120 Misc. 2d 848 (Beslity v. Manhattan Honda) is published on Counsel Stack Legal Research, covering Appellate Terms of the Supreme Court of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beslity v. Manhattan Honda, 120 Misc. 2d 848, 467 N.Y.S.2d 471, 1983 N.Y. Misc. LEXIS 3809 (N.Y. Ct. App. 1983).

Opinion

[849]*849OPINION OF THE COURT

Per Curiam.

Judgment dated May 6,1982 is reversed, with $30 costs; judgment is awarded in favor of the plaintiff in the sum of $50.

Plaintiff, an attorney, brought this small claims action to recover $800 damages and attorney’s fees upon the ground that the defendant Manhattan Honda had engaged in false advertising in violation of subdivision 3 of section 350-d of the General Business Law (L 1980, ch 345). The advertisement giving rise to this claim appeared in the New York Times, on Sunday, December 27, 1981. It announced in bold print, “$1,000. off* 1982 accord hatchback” and further stated, in small print, “for example: Stk# [stock number] C159” with assorted features including “variable assist P/steering”, with “[s]imilar savings on other cars in stock”. Honda manufactures two hatchback models, one, the standard Accord hatchback, which has “rack and pinion steering”, the other, the more expensive Accord LX hatchback, which has “variable-assist power steering”.

While the December 27, 1981 advertisement made no mention of the Accord LX hatchback, the plaintiff knew that “variable-assist power steering” was standard equipment only on the more expensive Accord LX hatchback. Armed with that information and noting that the December 27, 1981 advertisement utilized as an example of a hatchback qualifying for the $1,000 discount, a vehicle ostensibly equipped with “variable-assist power steering”, the plaintiff, on December 28, 1981, proceeded to defendant’s place of business and requested a $1,000 discount on an Accord LX hatchback. In response to that request, plaintiff was advised that the $1,000 discount was available only on the standard Accord hatchback and did not apply to the Accord LX hatchback, albeit a $750 discount was available on the Accord LX hatchback. Plaintiff pointed out to the defendant the discrepancy which he perceived between what had been advertised and what he was being offered, but to no avail. Plaintiff, on December 28, 1981, purchased from the defendant an Accord LX hatchback, receiving the $750 discount.

[850]*850On February 11, 1982 plaintiff wrote to the defendant demanding $250 in order to secure the full amount of the discount advertised in the December 27, 1981 ad. Defendant replied that the discount advertised on December 27, 1981 was for a vehicle inventoried as stock No. C159 (which it developed was a standard Accord hatchback, with rack and pinion steering and not assist power steering, as had been advertised), and on that basis defendant believed itself free to offer different discounts on different models, which discounts defendant’s customers were of course entitled to accept or reject as they saw fit. Defendant introduced into evidence a letter dated December 28, 1981 from their advertising company in which that company took full responsibility for the erroneous statement in the December 27, 1981 ad, that stock No. C159 was equipped with variable-assist power steering.

Article 22-A (§ 349 et seq.) of the General Business Law provides for consumer protection from deceptive acts and practices. In 1970, with the enactment of section 349 of the General Business Law, the New York State Attorney-General was empowered to maintain actions to enjoin deceptive trade practices and to seek restitution of moneys or property obtained through such practices. In 1980, with the enactment of both subdivision 3 of section 350-d of the General Business Law and its companion provision, subdivision (h) of section 349 (L 1980, ch 346), the individual consumer was recruited into the campaign against false advertising and deceptive business practices. Subdivision 3 of section 350-d of the General Business Law provides: “Any person who has been injured by reason of any violation of section three hundred fifty [which proscribes false advertising in the conduct of any business, trade or commerce or in the furnishing of any service in this State] * * * may bring an action in his own name to enjoin such unlawful act or practice and to recover his actual damages or fifty dollars, whichever is greater. The court may, in its discretion, increase the award of damages to an amount not to exceed three times the actual damages up to one thousand dollars, if the court finds the defendant willfully or knowingly violated this section. The court may award reasonable attorney’s fees to a prevailing plaintiff.”

[851]*851The plaintiff, claiming he sustained a $250 loss by virtue of having received a $750 discount rather than the advertised $1,000 discount, sues to recover $750 damages under the treble damages provision of subdivision 3 of section 350-d of the General Business Law ($250 x 3 = $750) plus attorney’s fees.

The court below after concluding that the December 27, 1981 advertisement fell within the ambit of “false advertising”, considered the scope of relief available to an “injured person” under subdivision 3 of section 350-d. In that regard Trial Term held that an action for damages only under subdivision 3 of section 350-d of the General Business Law will generally not lie because, in the view of Trial Term, an application for injunctive relief is, in most instances, an essential element of actions maintained pursuant to subdivision 3 of section 350-d. Having so construed subdivision 3 of section 350-d, the court below nonetheless found the instant action to be one of those ostensibly rare exceptions in which a plaintiff was entitled to maintain an action under subdivision 3 of section 350-d for damages only, because defendant had acknowledged that the subject ad resulted from a copywriting error and it was therefore unlikely that the misleading ad would be republished. Turning to the merits of plaintiff’s claim, Trial Term held that the plaintiff was entitled to no recovery because the plaintiff — predicated upon his “superior knowledge” of the difference between a standard Accord hatchback and an Accord LX hatchback — must have had “a correct apprehension of the advertisement and knew, in fact, that the ad contained a mistake.” The court did, however, observe that had another consumer, less knowledgeable than the plaintiff, responded to the ad and demanded a $1,000 discount on an Accord LX hatchback, the court would have had no trouble in finding that such a less sophisticated consumer had been misled by the ad.

On appeal the plaintiff argues that an action for damages only does lie under subdivision 3 of section 350-d of the General Business Law; that a consumer need not actually be misled to be an “injured” person within the scope of subdivision 3 of section 350-d; that the plaintiff is entitled to treble damages because the defendant’s conduct [852]*852knowingly violated subdivision 3 of section 350-d, and that the plaintiff attorney, albeit proceeding pro se, is entitled to attorney’s fees. The defendant has not participated in this appeal.

The genesis of both subdivision 3 of section 350-d and its companion provision, subdivision (h) of section 349 of the General Business Law, was in large measure the inability of the New York State .Attorney-General to adequately police false advertising and deceptive trade practices.

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Bluebook (online)
120 Misc. 2d 848, 467 N.Y.S.2d 471, 1983 N.Y. Misc. LEXIS 3809, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beslity-v-manhattan-honda-nyappterm-1983.