S T A T E O F N E W Y O R K
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6374
2019-2020 Regular Sessions
I N A S S E M B L Y
March 7, 2019
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Introduced by M. of A. SMITH -- 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 retail stores attempting to settle civil actions deriving 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 IN LARCENY PROSECUTIONS. 1. WHENEVER A
MERCHANT OR RETAIL STORE ATTEMPTS TO SETTLE A CIVIL ACTION THAT IS
DERIVATIVE OF A CRIMINAL PROSECUTION COMMENCED UNDER ARTICLE ONE HUNDRED
FIFTY-FIVE OF THE PENAL 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 SETTLEMENT AGREEMENT IN A CIVIL ACTION
FOR SATISFACTION OF DAMAGES RELATED TO A CRIMINAL PROSECUTION. YOU HAVE
THE RIGHT TO REFUSE THIS OFFER. YOUR ACCEPTANCE OR REFUSAL OF THIS OFFER
HAS NO EFFECT ON ANY CRIMINAL ACTION ARISING FROM THE EVENTS THAT LED TO
THIS CIVIL ACTION. FAILURE TO ACCEPT THIS AGREEMENT MAY RESULT IN CIVIL
LITIGATION AGAINST YOU.
2. A MERCHANT OR RETAIL STORE THAT FAILS TO INCLUDE SUCH STATEMENT IN
ANY COMMUNICATION WITH DEFENDANT 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 MERCHANT OR RETAIL STORE 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 MERCHANT OR RETAIL STORE;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06888-01-9
A. 6374 2
(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. ON A FINDING BY THE COURT THAT AN
ACTION UNDER THIS SECTION WAS BROUGHT IN BAD FAITH AND FOR THE PURPOSE
OF HARASSMENT, THE COURT MAY AWARD TO THE DEFENDANT ATTORNEYS' FEES
REASONABLE IN RELATION TO THE WORK EXPENDED AND COSTS.
§ 2. This act shall take effect immediately.