Cannon v. Equitable Life Assurance Society of United States

87 A.D.2d 403, 451 N.Y.S.2d 817, 1982 N.Y. App. Div. LEXIS 16566
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 28, 1982
StatusPublished
Cited by5 cases

This text of 87 A.D.2d 403 (Cannon v. Equitable Life Assurance Society of United States) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cannon v. Equitable Life Assurance Society of United States, 87 A.D.2d 403, 451 N.Y.S.2d 817, 1982 N.Y. App. Div. LEXIS 16566 (N.Y. Ct. App. 1982).

Opinion

[404]*404OPINION OF THE COURT

Bracken, J.

In an action to recover damages resulting from defendant’s alleged age discrimination practices and for other affirmative relief, we are asked to consider whether Federal age discrimination actions supersede and supplant the right of a private, individual to maintain such action for age discrimination in the State courts and, if not, whether in this particular instance the certification of this matter as a class action should be sustained.

We hold that the appeal from the order dated January 13,1981, which certified the action as a class action, should be dismissed, since that order was superseded by a further order, dated February 24,1981, which granted reargument and adhered to the original determination. The order dated February 13, 1981 denying defendant’s motion to dismiss or stay the- within action pursuant to the provisions of section 633 (subd [a]) of title 29 of the United States Code or pursuant to CPLR 2201 should be affirmed. Since, however, we herein determine that the within action cannot be maintained as a class action, the order dated February 24, 1981 should be reversed insofar as appealed from, the application for class action certification denied, the action decertified as a class action, and the complaint amended to eliminate all allegations as to the representation of absent persons.

The defendant, Equitable Life Assurance Society of the United States (Equitable), commenced a substantial staff reduction in the third quarter of 1978. On September 10, 1979, three individual plaintiffs commenced this action, which alleged the unlawful discharge of said plaintiffs based upon the defendant’s willful program of age discrimination in violation of section 296 (subd 1, par [a]) of the Executive Law (Human Rights Law [Executive Law, art 15]). Three days prior to the commencement of this action, six other terminated employees filed a class action in the Federal District Court for the Southern District of New York, alleging that Equitable’s policy of age discrimination violated the Age Discrimination in Employment Act (hereinafter ADEA) (see US Code, tit 29, § 623, subd [a]; [405]*405Burns v Equitable Life Assur. Soc. of U.S., 79 Civ 4726, US Dist Ct, SDNY, Lasker, J.).

On November 19, 1979 the plaintiffs filed a motion in this action for class certification on behalf of the class of employees “over the age of forty (40) but less than seventy (70)” terminated or downgraded through the defendant’s alleged willful program of age discrimination. Special Term, by order dated January 13,1981, certified the plaintiffs’ action as a class action, defined the class, inter alia, as all of those employees over the age of 40 but less than 70 who had been terminated or demoted from August, 1978 to January, 1981, who had not and would not file consents in the pending Federal action (the Burns action) and who did not request exclusion from the class within 20 days after receipt of notice of pendency of this class action. Approximately 700 employees had been terminated or demoted, of which approximately 575 had not filed consents in the Burns class action, which comprises 133 persons. Special Term, in its decision, noted that “[t]he discretion of this court persists under CPLR 902 to alter or amend our order or deny class action treatment if at any stage of the action it develops that the class is too unwieldy or small * * * or that the principal issue is not appropriate for adjudication in a class action” (Cannon v Equitable Life Assur. Soc. of U. S., 106 Misc 2d 1060, 1072). A decision-order in the Federal Burns action, dated January 27, 1982, which denied defendant’s motion to dismiss the complaint in said action, indicated that more than 500 employees were terminated, of which approximately 360 persons were over 40 years of age (Burns v Equitable Life Assur. Soc. of U. S., supra).

Equitable thereafter sought to dismiss or stay this certified class action during the pendency of the Federal class action, relying upon section 633 (subd [a]) of title 29 of the United States Code, which provides that upon commencement of an action under the ADEA, such action shall supersede any State action, and upon CPLR 2201. Special Term denied the requested relief by order dated February 13, 1981.

Prior to September 10, 1981, the calendar date of argument before this court, the Equal Employment Opportu[406]*406nity Commission (EEOC) filed a civil action in the United States District Court for the Southern District of New York, pursuant to section 626 (subd [b]) of title 29 of the United States Code (Equal Employment Opportunity Comm. v Equitable Life Assur. Soc. of U. S., 81 Civ 5447). The EEOC action sought liquidated damages (double damages) pursuant to section 216 (subd [b]) of title 29 of the United States Code, for 434 terminated employees and, in addition, sought the elimination of defendant’s past and present unlawful employment practices, a direction for the rehiring and promoting of employees who had been the victims of discrimination and the restoring of all such employees’ rights and privileges of employment. This latter relief is also sought on behalf of all similarly terminated or demoted employees not so named in the said action. By stipulation, 18 of the 434 persons included in exhibit A to the EEOC complaint were deleted. These 18 individuals are opt-in plaintiffs in the Federal Burns action. The parties, in the course of oral argument before this court, addressed the issue of the impact of the filing of the EEOC Federal District Court action during the pendency of this appeal.1

Initially, it is emphasized that an age discrimination suit may not be brought in the Federal courts as a class action, pursuant to Rule 23 of the Federal Rules of Civil Procedure. The relevant statutory provisions (US Code, tit 29, § 626, subd [b]; § 216, subd [b]), which allow as class members in a class action suit under the ADEA only those persons who affirmatively “opt into” the class, are inconsistent with rule 23, which provides that persons within the description of the class are considered to be class members unless they have “opted out” of the suit.

A class action brought pursuant to the ADEA, therefore, is statutory in nature and is independent of and unrelated to a class action brought under rule 23 (McGinley v Burroughs Corp., 407 F Supp 903).

[407]*407It is further emphasized that New York State has no comparable statutory provisions allowing the maintaining of a statutory class action for alleged violations of the New York Human Rights Law. The only procedural vehicle, therefore, allowing a class action in New York is CPLR article 9, which provides for an opt-out procedure.

Equitable asserts that an analysis of the legislation granting the EEOC the jurisdiction to maintain an age discrimination suit demonstrates that such action is an exclusive remedy barring any private individual or class action for the same or similar relief. We note that the EEOC may seek class-wide relief for a group of aggrieved individuals in an enforcement action brought in its own name pursuant to Title VII of the Civil Rights Act of 1964, without being certified as the class representative under rule 23 (General Tel. Co.

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87 A.D.2d 403, 451 N.Y.S.2d 817, 1982 N.Y. App. Div. LEXIS 16566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cannon-v-equitable-life-assurance-society-of-united-states-nyappdiv-1982.