O'Brien v. Provident Loan Society

60 Misc. 2d 506, 302 N.Y.S.2d 889, 1969 N.Y. Misc. LEXIS 1343
CourtCivil Court of the City of New York
DecidedJuly 18, 1969
StatusPublished
Cited by1 cases

This text of 60 Misc. 2d 506 (O'Brien v. Provident Loan Society) 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
O'Brien v. Provident Loan Society, 60 Misc. 2d 506, 302 N.Y.S.2d 889, 1969 N.Y. Misc. LEXIS 1343 (N.Y. Super. Ct. 1969).

Opinion

Leonard L. Finz, J.

On this rather unique motion, plaintiff seeks the following multiple relief:

a. To stay all persons represented by plaintiff in the instant action from bringing any other action against defendant on causes of action similar to that stated in said action.
b. To direct defendant to send, to all persons making claim against it on such causes of action, a copy of the order to be entered hereon, directing the Clerk of the Civil Court of the City of New York not to file any summons and complaint in any other action stating such cause of action under a separate index number, but to file the same under the index number of the instant action and to send a copy of the order to be entered hereon to the filer thereof.
c. To direct the defendant to appear for examination before trial at the Civil Court on the ground that the number of claims and the identity of the issues require that an orderly procedure be established to determine defendant’s liability.
[507]*507eh To direct the filing of claims and to provide for the payment of disbursements and attorney’s fees.

Plaintiff in a rather novel and imaginative proceeding has purported to institute a class action on behalf of herself and many others who are alleged to be similarly situated. She has served a complaint asserting one cause of action against defendant, alleging negligence in the loss of certain property belonging to herself and to the members of the class whom she would purport to represent. The complaint alleges that, upon information and belief, the members of the class number 2,600 and the value of the property lost is $4,000,000, of which plaintiff’s own interest is $1,000.

The defendant opposes the motion of plaintiff and, additionally, has cross-moved to dismiss the complaint:

1. Pursuant to CPLR 3211 (subd. [a], par. 3) on the ground that plaintiff lacks legal capacity to bring a representative action on behalf of the other persons whose property may have been lost;
2. Pursuant to CPLR 3211 (subd. [a], par. 7) for failure to state a cause of action.

The cross motion also seeks dismissal of such portion of plaintiff’s complaint as attempts to constitute a class action, upon the grounds that the Civil Court does not have monetary jurisdiction of the subject matter thereof.

The facts, which might well serve as the theme of any motion picture or television script, are as follows:

On February 17, 1969, the Provident Loan Society of New York,

[508]*508Following the robbery of February 17, 1969, a number of the. pledgors instituted lawsuits for the loss of their property. A number of those lawsuits are pending in this court, several are pending in the Civil Court, New York County, and one, seeking recovery of $20,000, is pending in the Supreme Court, Nassau County.

In the instant action the plaintiff asserts one single cause of action on behalf of herself and as the representative of all other pledgors whose property may have been stolen from the defendant on February 17,1969. That cause of action alleges the value of the stolen collateral to be some $4,000,000, with the individual plaintiff’s interest therein being $1,000. The thrust of the complaint is to the effect that the plaintiff has appointed herself the representative of some 2,500 pledgors and that she in effect seeks recovery of some $4,000,000 on their behalf.

Plaintiff, in asserting that a properly maintainable class action has been brought, relies upon CPLR 1005 (subd. [a]), which provides:

“ Section 1005. Class actions, (a) When allowed. Where the question is one of a common or general interest of many persons or where the persons who might be made parties are very numerous and it may be impracticable to bring them all before the court, one or more may sue or defend for the benefit of all.”

I. OlVIXi COURT JURISDICTION

The first issue before the court is whether the Civil Court of the City of New York may entertain properly the proffered class or representative action.

Section 202 of the New York Civil Court Act establishes the monetary jurisdiction of the Civil Court in the sum of $10,000 or less. The instant complaint consisting of one cause of action is brought on behalf of the plaintiff and some 2,500 other persons similarly situated. While plaintiff demands $1,000 as her loss, she cites the affected class of 2,500 persons and the value of the stolen collateral as being approximately $4,000,000.

This is not an instance of a series of 2,500 claims being joined or consolidated. Such joinder or consolidation must assume the existence of 2,500 pending lawsuits; a situation which is the direct opposite of that in which a class action would be appropriate. By the terms of CPLR 1005 (subd. [a]), class actions are reserved for situations in which the persons to be represented are not before the court in separate actions. Thus, if we had 2,500 separate causes of action, each for less than $10,000, the Civil Court would have jurisdiction over each individual [509]*509action and would have jurisdiction of a consolidated action in which all of those 2,500 actions were joined. A class action by its very nature and its very definition is one came of action in which a representative of a class of claimants not otherwise before the court seeks relief on behalf of himself and the members of the class in an aggregate amount from a common fund.

In Hall v. Coburn Corp. of Amer. (Sup. Ct., N. Y. County, Index No. 6338 [1968], affd. without opn. 31 A D 2d 892 [1960]), the plaintiffs sought recovery for themselves and others similarly situated, of credit service charges paid by themselves and the members of the alleged class, all of whom were signatories to identical retail installment purchase contracts. The contention was that the contracts were in violation of law. In dismissing the complaint upon the grounds that the plaintiffs did not have a common bond and were not united in interest as required by CPLR 1005 (subd. [a]) and the cases interpreting that statute, the court granted leave to the individual plaintiffs who sought to represent the alleged class to serve amended complaints on their own behalf.

. The court directed further that since the amounts sought by the respective plaintiffs were less than $10,000, the action would have to be transferred to the Civil Court. In effect, the Hall case buttresses defendant’s argument that the nature of a class action seeking monetary relief in an aggregate amount exceeding $10,000 is a single cause of action.

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74 Misc. 2d 590 (New York Supreme Court, 1973)

Cite This Page — Counsel Stack

Bluebook (online)
60 Misc. 2d 506, 302 N.Y.S.2d 889, 1969 N.Y. Misc. LEXIS 1343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/obrien-v-provident-loan-society-nycivct-1969.