Koch v. Acker, Merrall & Condit Co.

CourtNew York Court of Appeals
Citation2012 N.Y. Slip Op. 02254,18 N.Y.3d 940,944 N.Y.S.2d 452,967 N.E.2d 675
Decision Date27 March 2012
PartiesWilliam I. KOCH, Appellant, v. ACKER, MERRALL & CONDIT COMPANY, Respondent.

18 N.Y.3d 940
967 N.E.2d 675
944 N.Y.S.2d 452
2012 N.Y. Slip Op. 02254

William I. KOCH, Appellant,
v.
ACKER, MERRALL & CONDIT COMPANY, Respondent.

Court of Appeals of New York.

March 27, 2012.



[944 N.Y.S.2d 452]Hunton & Williams LLP, New York City (Joseph J. Saltarelli, Shawn Patrick Regan and Jennifer L. Cummins of counsel), for appellant.

Meister Seelig & Fein LLP, New York City (Stephen B. Meister, Thomas L. Friedman and Remy J. Stocks of counsel), for respondent.


Theodore Hadzi–Antich and Deborah J. La Fetra, Sacramento, CA, for Pacific Legal Foundation, amicus curiae.

[18 N.Y.3d 941]OPINION OF THE COURT

MEMORANDUM.

[1] The judgment of Supreme Court appealed from and the order of the Appellate Division brought up for review should be reversed, with costs, and defendant's motion to dismiss plaintiff's General Business Law §§ 349 and 350 causes of action denied. To successfully assert a claim under General Business Law § 349(h) or § 350, “a plaintiff must allege that a defendant has engaged in (1) consumer-oriented conduct that is (2) materially misleading and that (3) plaintiff suffered injury as a result of the allegedly deceptive act or practice” ( City of New York v. Smokes–Spirits.Com, Inc., 12 N.Y.3d 616, 621, 883 N.Y.S.2d 772, 911 N.E.2d 834 [2009];see

[967 N.E.2d 676]

[944 N.Y.S.2d 453]Goshen v. Mutual Life Ins. Co. of N.Y, 98 N.Y.2d 314, 324 n. 1, 746 N.Y.S.2d 858, 774 N.E.2d 1190 [2002] ). Here, plaintiff sufficiently pleaded such causes of action, and the disclaimers set forth in defendant's catalogs “ do not ... bar [plaintiffs] claims for deceptive trade practices at this stage of the proceedings, as they do not establish a defense as a matter of law” ( Goshen, 98 N.Y.2d at 326, 746 N.Y.S.2d 858, 774 N.E.2d 1190;see Gaidon v. Guardian Life Ins. Co. of Am., 94 N.Y.2d 330, 345, 704 N.Y.S.2d 177, 725 N.E.2d 598 [1999] ).

To the extent that the Appellate Division order imposed a reliance requirement on General Business Law §§ 349 and 350 claims, it was error. Justifiable reliance by the plaintiff is not an element of the statutory claim ( see [18 N.Y.3d 942]Small v. Lorillard Tobacco Co., 94 N.Y.2d 43, 55, 698 N.Y.S.2d 615, 720 N.E.2d 892 [1999], citing Oswego Laborers' Local 214 Pension Fund v. Midland Bank, 85 N.Y.2d 20, 26, 623 N.Y.S.2d 529, 647 N.E.2d 741 [1995] ).

Chief Judge LIPPMAN and Judges CIPARICK, GRAFFEO, READ, PIGOTT and JONES concur in memorandum; Judge SMITH taking no part.

On review of submissions pursuant to section 500.11 of...

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175 practice notes
  • In re Conagra Foods, Inc., No. CV 11–05379 MMM (AGRx).
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Central District of California
    • February 23, 2015
    ...clarified, however, that proof of reliance and scienter are not elements of a GBL claim. See Koch v. Acker, Merrall & Condit Co., 18 N.Y.3d 940, 941–41, 944 N.Y.S.2d 452, 967 N.E.2d 675 (2012). Rather, “each [GBL] claim includes the requirement that a reasonable consumer could have been mis......
  • Gordon v. First Franklin Fin. Corp., 15-CV-0775 (SJF)(AKT)
    • United States
    • United States District Courts. 2nd Circuit. United States District Court (Eastern District of New York)
    • February 29, 2016
    ...deceptive act or practice." Orlander v. Staples, Inc., 802 F.3d 289, 300 (2d Cir. 2015) (quoting Koch v. Acker, Merrall & Condit Co., 18 N.Y.3d 940, 944 N.Y.S.3d 452, 452, Page 23967 N.E.2d 675 (2012)). "As for the 'materially misleading' prong, the New York Court of Appeals has adopted an ......
  • In re Subaru Battery Drain Prods. Liab. Litig., Civil Action No. 1:20-cv-03095-JHR-JS
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. District of New Jersey
    • March 31, 2021
    ...Section 349 or 350." Bassaw v. United Indus. Corp., 482 F. Supp. 3d 80, 88 (S.D.N.Y. 2020) (citing Koch v. Acker, Merrall & Condit Co., 18 N.Y.3d 940, 944 N.Y.S.2d 452, 967 N.E.2d 675 (N.Y. 2012)). See also Devane v. L'Oreal USA, Inc., No. 19 CIV. 4362 (GBD), 2020 WL 5518484, at *3 (S.D.N.Y......
  • Daniel v. Mondelez Int'l, Inc., 17–CV–00174 (MKB)
    • United States
    • United States District Courts. 2nd Circuit. United States District Court (Eastern District of New York)
    • February 26, 2018
    ...deceptive act or practice."5 Orlander v. Staples, Inc. , 802 F.3d 289, 300 (2d Cir. 2015) (citing Koch v. Acker, Merrall & Condit Co. , 18 N.Y.3d 940, 944 N.Y.S.2d 452, 967 N.E.2d 675 (2012) ); see Maurizio v. Goldsmith , 230 F.3d 518, 521 (2d Cir. 2000) (citing the elements for a prima fac......
  • Request a trial to view additional results
176 cases
  • In re Conagra Foods, Inc., No. CV 11–05379 MMM (AGRx).
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Central District of California
    • February 23, 2015
    ...clarified, however, that proof of reliance and scienter are not elements of a GBL claim. See Koch v. Acker, Merrall & Condit Co., 18 N.Y.3d 940, 941–41, 944 N.Y.S.2d 452, 967 N.E.2d 675 (2012). Rather, “each [GBL] claim includes the requirement that a reasonable consumer could have been mis......
  • Gordon v. First Franklin Fin. Corp., 15-CV-0775 (SJF)(AKT)
    • United States
    • United States District Courts. 2nd Circuit. United States District Court (Eastern District of New York)
    • February 29, 2016
    ...deceptive act or practice." Orlander v. Staples, Inc., 802 F.3d 289, 300 (2d Cir. 2015) (quoting Koch v. Acker, Merrall & Condit Co., 18 N.Y.3d 940, 944 N.Y.S.3d 452, 452, Page 23967 N.E.2d 675 (2012)). "As for the 'materially misleading' prong, the New York Court of Appeals has adopted an ......
  • In re Subaru Battery Drain Prods. Liab. Litig., Civil Action No. 1:20-cv-03095-JHR-JS
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. District of New Jersey
    • March 31, 2021
    ...Section 349 or 350." Bassaw v. United Indus. Corp., 482 F. Supp. 3d 80, 88 (S.D.N.Y. 2020) (citing Koch v. Acker, Merrall & Condit Co., 18 N.Y.3d 940, 944 N.Y.S.2d 452, 967 N.E.2d 675 (N.Y. 2012)). See also Devane v. L'Oreal USA, Inc., No. 19 CIV. 4362 (GBD), 2020 WL 5518484, at *3 (S.D.N.Y......
  • Daniel v. Mondelez Int'l, Inc., 17–CV–00174 (MKB)
    • United States
    • United States District Courts. 2nd Circuit. United States District Court (Eastern District of New York)
    • February 26, 2018
    ...deceptive act or practice."5 Orlander v. Staples, Inc. , 802 F.3d 289, 300 (2d Cir. 2015) (citing Koch v. Acker, Merrall & Condit Co. , 18 N.Y.3d 940, 944 N.Y.S.2d 452, 967 N.E.2d 675 (2012) ); see Maurizio v. Goldsmith , 230 F.3d 518, 521 (2d Cir. 2000) (citing the elements for a prima fac......
  • Request a trial to view additional results

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