BILL NUMBER: S3661
SPONSOR: HOYLMAN-SIGAL
TITLE OF BILL:
An act to amend the civil practice law and rules, in relation to class
actions
SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill amends the civil practice law and rules to elim-
inate the restriction on class actions involving a penalty or minimum
recovery, and adds language expressly permitting class actions against
governmental entities.
Section 2 of the bill amends the civil practice law and rules to elimi-
nate the fixed deadline to move for class certification and direct
appointment of counsel in the class certification order.
Section 3 of to eliminate exercise its interests of Federal Rule
approval. It the bill amends section 908 of the civil practice law and
rules the mandatory provision of notice and authorize a court to
discretion to direct notice where appropriate to protect the the class
or putative class to better align New York law with 23(e) while retain-
ing the existing requirement for judicial also expands the section to
include settlement of an action.
Section 4 of the bill prevents any statutory conflict about the basis
for a fee award and the standard that governs when the fees are to be
paid by a defendant.
Section 5 is the effective date.
JUSTIFICATION:
The administration of class actions in New York's courts has not mate-
rially changed since the enactment of Art. 9 in 1975. While New York
legislative proposals were the basis for Rule 23 of the Federal Rules of
Civil Procedure in 1966, the federal rules have been amended several
times since then.
Outdated and often confusing class action procedures lead to, among
other things, (i) New York courts missing opportunities to entertain
complex class actions due to forum shopping in the federal courts, (ii)
wasteful briefing because of artificial deadlines for certification
motions not suitable for contemporary practice, (iii) arbitrary deci-
sions regarding class counsel due to lack of statutory guidance, and
(iv) difficulty in concluding settlements because of a rule requiring
notice even where a class has not been certified and no non-party would
be bound.
LEGISLATIVE HISTORY:
2023-2024: S7113/A9425 - Died in Judiciary/Died in Judiciary
2019-2020: S6334A/A8034 - Died in rules / died in rules
2017-2018: OCA 2017-61
2015-2016: OCA 2016-88 Assembly 9573 (M. of A. Weinstein) (ordered to
3rd Rdg., Rules Cal. 292)
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This measure would take effect on the first day of January next succeed-
ing the date on which it shall have become a law.
Statutes affected: S3661: 901 civil practice law, 901(b) civil practice law, 902 civil practice law