Beslity v. Manhattan Honda

113 Misc. 2d 888, 450 N.Y.S.2d 278, 1982 N.Y. Misc. LEXIS 3397
CourtCivil Court of the City of New York
DecidedMay 6, 1982
StatusPublished
Cited by1 cases

This text of 113 Misc. 2d 888 (Beslity v. Manhattan Honda) is published on Counsel Stack Legal Research, covering Civil Court of the City 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, 113 Misc. 2d 888, 450 N.Y.S.2d 278, 1982 N.Y. Misc. LEXIS 3397 (N.Y. Super. Ct. 1982).

Opinion

OPINION OF THE COURT

David B. Saxe, J.

The issue that is raised in this Small Claims Court proceeding on the court’s own motion is as follows: Must a consumer who seeks relief under section 350-d of the General Business Law, a so-called “private Attorney General Statute” always bring an action for both damages and injunctive relief? If so, then a proceeding such as this one, under section 350-d of the General Business Law (as [889]*889well as General Business Law, § 349, subd [h]) should be brought in the State Supreme Court and not in the Civil Court.

The following are the essential facts: The claimant is an attorney for the Legal Aid Society suing pro se. Defendant Manhattan Honda placed an advertisement in the automobile section of the Sunday New York Times of December 27, 1981. In large bold type, the ad began:

“$1,000 OFF*

“1982 ACCORD HATCHBACK”

Slightly below, in much smaller type was, first, a corresponding asterisk, followed by a detailed description of the car that was offered. As a discerning purchaser, the claimant Mr. Beslity, read each word carefully and concluded that the vehicle described was not an Accord Hatchback, but instead, an Accord Hatchback LX, the very car he wanted to buy! He came to the conclusion that the example in the ad was an LX model because it had equipment available only on the LX (i.e., variable-assist power steering). Armed with this information, he proceeded quickly to defendant Honda’s showroom to purchase the Honda LX with a $1,000 discount. A salesman informed him that the ad referred to a mere Hatchback, not the more exclusive LX. At trial, Honda indeed admitted that the description of the car in the ad was that of an LX and not a Hatchback, the result, of a copy-writing mistake.

The claimant purchased the LX model. Honda gave him a $750 discount based upon their offer in the same ad of “similar savings on other cars in stock.” The offer was not satisfactory to the claimant who now sues for actual damages of $250, representing the difference between the advertised discount of $1,000 and the actual discount allowed of $750.

Subdivision 3 of section 350-d of the General Business Law states in part: “Any person who has been injured by rpason of any violation of section three hundred fifty or three hundred fifty-a of this article 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 [890]*890greater.” The statute permits a trebling of damages when appropriate and an award of attorney’s fees to the prevailing party.

Section 350-a of the General Business Law defines “false advertising” as advertising “which is misleading in a material respect; and in determining whether any advertising is misleading, there shall be taken into account (among other things) not only representations made by statement, word * * * but also the extent to which the advertising fails to reveal facts material in the light of such representations with respect to the commodity to which the advertising relates under the conditions prescribed in said advertisement, or under such conditions as are customary or usual.”

Was the Honda advertisement false and misleading? In prosecutions brought by governmental agencies seeking to establish sanctions for false advertising, it has been held that the capacity of the advertisement to deceive, rather than the intent to deceive, is the test for determining whether the advertisement constitutes false advertising. (See Guggenheimer v Ginzburg, 43 NY2d 268; People v Volkswagen of Amer., 47 AD2d 868; Federal Trade Comm, v Colgate-Palmolive Co., 380 US 374, 391-392; see, also, Note, The Regulation of Advertising, 56 Col L Rev 1018, 1025-1027.)

In analyzing whether an advertisement has the capacity to deceive, a court will not look to its effect on the average consumer but instead “to the vast multitude which the statutes were enacted to safeguard — including the ignorant, the unthinking and the credulous who, in making purchases, do not stop to analyze but are governed by appearances and general impressions”. (Guggenheimer v Ginzburg, supra, p 273.) This is the standard under which advertising is evaluated for potential prosecution by governmental agencies. In effect, since almost any combination of words has the capacity to deceive someone, a form of strict liability is imposed on advertisers (see, generally, Millstein, The Federal Trade Commission and False Advertising, 64 Col L Rev 439).

Of course, for an advertisement to be deceptive, it must contain a material untruth — that is, one capable of [891]*891affecting purchase decisions. (See Note, Developments in the Law — Deceptive Advertising, 80 Harv L Rev 1005, 1056.)

In this case, if a government consumer protection agency were to proceed against the defendant Honda, there is little question that the advertisement in question could be found to have a capacity to deceive because the car described in the body of the ad was not the model listed at the top, that specified a $1,000 discount. It would not matter that the ad could be interpreted in two wáys — one true, one false (Giant Food v Federal Trade Comm.., 322 F2d 977, cert dsmd 376 US 967); nor would it matter that the ad resulted from a copy mistake (see Geismar v Abraham & Straus, 109 Misc 2d 495).

But when a consumer sues for damages only, under section 350-d of the General Business Law, to redress a false advertising violation, should that action be dismissed without prejudice to the commencement of a new action where he requests injunctive relief to enjoin the deceptive use and publication of the advertisement, as well as damages?

I hold that in most cases, an action for damages only must be dismissed. The law under scrutiny, section 350-d of the General Business Law, that establishes a private right of action for a violation of the statute prohibiting false advertising (General Business Law, § 350-a) states that a person injured by reason of false advertising may bring his own action to enjoin such act and to recover damages. The statute plainly refers to one action containing two elements: injunctive relief and damages. Similarly, subdivision (h) of section 349 of the General Business Law establishes a private right of action for consumers seeking damages and injunctive relief on account of deceptive acts or practices.

An action for injunctive relief must however be brought in the Supreme Court (see, generally, Siegel, New York Practice, § 12, p 14), not in the Civil Court, which is a court of limited jurisdiction. (NY City Civ Ct Act, § 209 [CCA].) Consequently, in most cases, an action brought under section 350-d of the General Business Law should be brought in the Supreme Court.

[892]*892Statutes such as subdivision (h) of section 349 and section 350-d of the General Business Law create new liabilities and therefore must be strictly construed (McKinney’s Cons Laws of NY, Book 1, Statutes, § 301, subd c) even though these statutes are remedial ones. (See Leppard v O'Brien, 225 App Div 162, affd 252 NY 563.)

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Bluebook (online)
113 Misc. 2d 888, 450 N.Y.S.2d 278, 1982 N.Y. Misc. LEXIS 3397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beslity-v-manhattan-honda-nycivct-1982.