Goldman v. Garofalo

96 Misc. 2d 790, 409 N.Y.S.2d 684, 1978 N.Y. Misc. LEXIS 2679
CourtNew York Supreme Court
DecidedSeptember 27, 1978
StatusPublished
Cited by5 cases

This text of 96 Misc. 2d 790 (Goldman v. Garofalo) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldman v. Garofalo, 96 Misc. 2d 790, 409 N.Y.S.2d 684, 1978 N.Y. Misc. LEXIS 2679 (N.Y. Super. Ct. 1978).

Opinion

OPINION OF THE COURT

James F. Niehoff, J.

In this action brought as a class action, plaintiff moves for an order permitting the action to be so maintained pursuant [792]*792to CPLR 902. The court is also presented with cross motions by both parties for summary judgment.

THE FACTS

The complaint originally consisted of two causes of action. Upon a motion to dismiss for insufficiency, the second cause of action was dismissed and the first cause of action was held to be legally sufficient on its face. That determination by this court (Albert, J.) was affirmed by the Appellate Division (59 AD2d 933).

The action, as it now stands, is one to recover fees paid by plaintiff and other members of the purported class for pap smear tests performed by defendant laboratory during a period of time when it did not have a valid State permit as required by section 574 of the Public Health Law.

Prior to March, 1973 the Lakeville Medical Laboratories, Inc., at New Hyde Park had a valid permit issued to its director, Dr. Howard Adelman. In March, 1973, Dr. Adelman left the employ of Lakeville Medical Laboratories at New Hyde Park and became Director of Pathology for Lakeville Laboratories in Commack, New York. Pursuant to the provisions of subdivision 6 of section 575 of the Public Health Law the laboratory permit became automatically void by virtue of the change in the laboratory director. Following a hearing before a representative of the State Commissioner of Health an order was made wherein the defendant Lakeville Medical Laboratories, Inc., was directed to pay a civil penalty of $6,500 and the defendant Anthony Garofalo a civil penalty of $4,500 for their violation of the Public Health Law and administrative rules and regulations promulgated thereunder. The fines levied have been paid and the defendant Lakeville Medical Laboratories, Inc., has been restored its laboratory permit. During the period in issue, over 100,000 pap smear tests were performed by the defendant Lakeville Medical Laboratories, Inc., at fees ranging from $2.50 to $5 per test.

THE MOTION FOR CLASS ACTION STATUS

The prior decision of Judge Albert and the affirmance by the Appellate Division did not pass upon the question of whether this action may be continued as a class action but expressly left that question for the motion which is now made.

In determining whether or not this matter should be maintained as a class action the court must determine whether the prerequisites set forth in CPLR 901 (subd a) have been met [793]*793taking into consideration the matters spelled out in CPLR 902. CPLR 901 (subd a) reads as follows:

"One or more members of a class may sue or be sued as representative parties on behalf of all if:

"1. the class is so numerous that joinder of all members, whether otherwise required or permitted, is impracticable;

"2. there are question of law or fact common to the class which predominate over any questions aifecting only individual members;

"3. the claims or defenses of the representative parties are typical of the claims or defenses of the class;

"4. the representative parties will fairly and adequately protect the interests of the class; and

"5. a class action is superior to other available methods for the fair and efficient adjudication of the controversy.”

Viewing the complaint in the light of the foregoing statute this court must conclude that at least four of the five CPLR 901 prerequisites exist. The required numerosity is obviously present since it appears that there could be as many as 100,000 members of the class. (The court will assume numerosity for the purposes of this motion although no other lawsuits have been commenced by members of the class concerning this controversy in spite of what plaintiff’s attorney describes as the "great public interest aroused in this case”.) The questions of law and fact appear to be common to the class inasmuch as the action seeks only a refund of moneys paid for pap smear tests done during the period when the defendant laboratory was not licensed and the amount paid as fees therefor, and the question of law is whether the defendants should be permitted to retain those fees. These questions are the same for all members of the class and the only difference among individual members would be as to the specific amount paid. That difference is an insufficient reason for a holding that there is not the required commonality of interest. (Vickers v Home Fed. Sav. & Loan Assn., 56 AD2d 62, 65.) Plaintiff’s allegation that she had three pap smears performed by the defendant laboratory during the period involved and that she paid a $5 fee for each adequately demonstrates that her claim is typical of the claims of the class. Additionally, the court has no reason to doubt that the interests of the class would be fairly and adequately protected by the representative and her attorney. There remains the [794]*794question of the presence or absence of the prerequisite set forth in CPLR 901 (subd a, par 5). That question raises matters which must be considered and go to the heart of a decision on the propriety and wisdom of granting class action status here.

Is a class action superior to other available methods for the fair and efficient adjudication of the controversy herein? At first blush it would seem that the small size of the individual claims is sufficient in and of itself to require an affirmative answer to that question and that the instant dispute constitutes a classic example of a class action lawsuit. The class action is particularly appropriate where a large number of persons has been injured but not sufficiently for them as individuals to commence individual actions (Brady v Lac, Inc., 72 FRD 22, 29). It would seem impracticable here for separate actions to be prosecuted. However, upon analysis, it is the very smallness of the claims when considered with all of the facts involved which justifies the conclusion that a class action would not be appropriate here.

As previously indicated this action is to recover moneys paid to the defendant laboratory for services performed by it while it was unlicensed. The members of the proposed class would consist of all persons who had pap smear tests done by defendant laboratory for a period of over three years. Inasmuch as it appears that the laboratory performed approximately 100,000 of such tests, the class has a potential of 100,000 persons. The fee paid for each test averages $2.50 for institutional patients and $5 for private patients with roughly an equal distribution between institutional and private patients. Plaintiff alleges that she had three pap smears performed during the period involved here at a price of $5 for each (but see statement of facts in plaintiff’s memorandum of law wherein it is stated that she had two tests during that period).

Assuming that each member of the class had the same number of tests, i.e., one for each year (an unlikely fact to assume but surely a reasonable maximum) the maximum recovery for each class member in this action would be $15 for private patients and $7.50 for institutional patients. More likely the claim of most class members would be one third or two thirds of those sums, i.e., amounts varying between $2.50 and $10. Of course, a proportionate share of attorney’s fees [795]*795and expenses in the action would further reduce the ultimate award to be received by the members of the class.

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Cite This Page — Counsel Stack

Bluebook (online)
96 Misc. 2d 790, 409 N.Y.S.2d 684, 1978 N.Y. Misc. LEXIS 2679, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldman-v-garofalo-nysupct-1978.