Summary
The Appellate Division, Second Department affirmed the trial court's dismissal of a putative class action seeking damages for rent overcharges. The court held that the plaintiff's claims were barred by a general release from a prior settled class action, as she failed to timely exercise her right to opt out. The court further determined that COVID-19 executive orders did not toll the opt-out deadline.
Topics
Practice areas
Questions Presented
- Whether the settlement release bars the plaintiff’s claims in the present action
- Whether the plaintiff’s failure to opt out defeats his claims
- Whether Executive Order No. 202.8 and related COVID‑19 orders toll the opt‑out requirement
Holdings
- The action is barred by the release; the dismissal under CPLR 3211(a) is affirmed.
- The executive order does not excuse the plaintiff’s failure to opt out; the release remains enforceable.
Key quotations
“'Generally, a valid release constitutes a complete bar to an action on a claim which is the subject of the release.'” (219 AD3d 1537)
“'A release is a contract, and its construction is governed by contract law.'” (227 AD3d 862)
“'The executive order and subsequent extensions do not relieve a party of the opt‑out requirements set forth in a settlement release.'” (213 AD3d 962)
Factual background
Schneier, a member of a prior class action against Clermont York Associates, LLC, filed a new class action alleging rent overcharges. The prior settlement contained a release that barred any claim by class members who did not timely opt out. The plaintiff received notice of the settlement and failed to opt out, and the defendant moved to dismiss on the ground that the release barred the action.
Procedural history
The plaintiff filed a putative class action seeking damages for rent overcharges. The Supreme Court, Queens County denied the plaintiff's class‑certification motion and granted the defendant's cross‑motion to dismiss, finding the action barred by a release in a prior class‑action settlement. The plaintiff appealed the order.