S T A T E O F N E W Y O R K
________________________________________________________________________
3238
2019-2020 Regular Sessions
I N A S S E M B L Y
January 29, 2019
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Introduced by M. of A. DINOWITZ, LENTOL, MOSLEY, RAIA -- read once and
referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to communications
by mercantile establishments attempting to settle civil actions deriv-
ing from larceny prosecutions
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general business law is amended by adding a new section
349-f to read as follows:
§ 349-F. CIVIL PROCEEDINGS DERIVATIVE OF ALLEGED LARCENY. 1. WHENEVER
A MERCANTILE ESTABLISHMENT ATTEMPTS TO SETTLE A CIVIL ACTION PURSUANT TO
SECTION 11-105 OF THE GENERAL OBLIGATIONS LAW, ALL COMMUNICATIONS
PERTAINING TO SUCH ATTEMPTED SETTLEMENT SHALL CONTAIN THE FOLLOWING
STATEMENT, WHICH SHALL, IF WRITTEN, BE IN A CONSPICUOUS PLACE, IN FONT
LARGER THAN THE REMAINDER OF THE COMMUNICATION, AND, IF SPOKEN, READ IN
ITS ENTIRETY:
"THIS IS AN ATTEMPT TO REACH A CIVIL SETTLEMENT AGREEMENT RESULTING
FROM A LARCENY THAT ALLEGEDLY INVOLVES YOU. SHOULD YOU CHOOSE TO AGREE
TO THIS SETTLEMENT, YOU WILL BE SUBJECT TO THE TERMS AND CONDITIONS OF
SUCH AGREEMENT, WHICH ARE GOVERNED BY §11-105 OF NEW YORK STATE'S GENER-
AL OBLIGATIONS LAW.
SHOULD YOU REFUSE THIS AGREEMENT, YOU ARE STILL SUBJECT TO §11-105 OF
NEW YORK STATE'S GENERAL OBLIGATIONS LAW, WHICH INDICATES THAT PERSONS
WHO COMMIT LARCENY AGAINST THE PROPERTY OF A MERCANTILE ESTABLISHMENT
ARE CIVILLY LIABLE TO SUCH MERCANTILE ESTABLISHMENT IN THE AMOUNT OF THE
RETAIL PRICE OF THE MERCHANDISE (ONLY IF SUCH MERCHANDISE IS NOT RECOV-
ERED IN SALEABLE CONDITION), UP TO $1,500, AND A PENALTY IN THE AMOUNT
THAT IS THE GREATER OF $75 OR FIVE-TIMES THE RETAIL PRICE, UP TO $500.
THE MERCANTILE ESTABLISHMENT MAY FILE A CIVIL LAWSUIT AGAINST YOU TO
PURSUE THE RECOVERY OF THESE DAMAGES. THESE CIVIL PENALTIES PRESCRIBED
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01190-01-9
A. 3238 2
BY LAW ARE ENTIRELY SEPARATE FROM ANY CRIMINAL PENALTIES THAT MAY BE
BROUGHT AGAINST YOU.
SHOULD YOU ACCEPT OR REFUSE A CIVIL SETTLEMENT AGREEMENT, A MERCANTILE
ESTABLISHMENT MAY STILL BRING CRIMINAL CHARGES AGAINST YOU IN A COURT OF
LAW, UNLESS SUCH CIVIL SETTLEMENT AGREEMENT BETWEEN YOU AND THE MERCAN-
TILE ESTABLISHMENT PRECLUDES THE MERCANTILE ESTABLISHMENT FROM PURSUING
CRIMINAL CHARGES."
2. A MERCANTILE ESTABLISHMENT THAT VIOLATES THIS SECTION SHALL BE
STRICTLY LIABLE FOR:
(A) ANY ACTUAL DAMAGES SUSTAINED BY DEFENDANT AS A RESULT OF SUCH
FAILURE;
(B) TREBLE THE AMOUNT SOUGHT BY THE MERCANTILE ESTABLISHMENT IN ANY
SUCH SETTLEMENT AGREEMENT. IN THE CASE OF MULTIPLE SETTLEMENT OFFERS,
THE AMOUNT TO BE TREBLED SHALL BE THE HIGHEST SETTLEMENT AMOUNT SOUGHT
BY SUCH MERCANTILE ESTABLISHMENT;
(C) IN THE CASE OF ANY SUCCESSFUL ACTION TO ENFORCE THE FOREGOING
LIABILITY, THE COSTS OF THE ACTION, TOGETHER WITH A REASONABLE ATTOR-
NEYS' FEE AS DETERMINED BY THE COURT.
§ 2. This act shall take effect immediately and shall apply to any
prospective attempted settlements of such civil actions.