The New York City Court of Appeals has ruled that all members of a putative, uncertified class-action must be notified when the lawsuit has been settled or dismissed.
The decision was part of a lawsuit, Desrosiers v. Perry Ellis Menswear.
Previously, the rule had only been applied to certified class actions, with respect to a state law in New York.
In this case, a former unpaid intern of Perry Ellis Menswear sued the company, alleging that it “improperly” classified employees as unpaid interns. The plaintiff wanted pay for his time interning at the company for himself and other interns. The defendant made a settlement offer to the plaintiff, which was accepted, so the defendant moved to have the suit dismissed. The plaintiff asked for time to have all the members of the class notified, which the defendant objected to because the class had not been certified. The state Supreme Court dismissed the complaint and denied the motion to have the other members notified.
New York Civil Practice Law & Rule 908 states that: A class action shall not be dismissed, discontinued, or compromised without the approval of the court. Notice of the proposed dismissal, discontinuance, or compromise shall be given to all members of the class in such manner as the court directs.
Because the statute does not distinguish between certified and uncertified class actions, the state Appeals Court has ruled that it applies to both.
