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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
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DANA GROSS, on behalf of herself and all
others similarly situated, Plaintiff,
against TICKETMASTER, TICKETMASTER, L.L.C.,
MADISON SQUARE GARDEN, L.P.,
ENTERTAINMENT, INC.,
and WORLD EVENTS, L.L.C., Defendants.
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Index No. 600504/02
Herman Cahn, J.
Defendants move to dismiss the latter three of four causes of action
asserted in this putative class action, for failure to state a claim,
CPLR 3211 (a) (7).
Plaintiff moves for class certification, CPLR 901, et seq.
The Facts as Alleged:
On July 31, 2001, plaintiff purchased six tickets for a concert
billed as "Michael Jackson: 30th Anniversary Celebration, the Solo
Years" through a Ticketmaster telephone representative (Complaint ¶
11). The tickets cost $98.50 each, plus miscellaneous service charges,
and were for seats 1 through 6 in Section 328, Row L, of Madison Square Garden (id., ¶¶ 15-16).
The amended complaint alleges that plaintiff and her five guests
arrived at the concert on September 10, 2001, only to discover that
their view of the stage was completely obstructed, and, thus, the
tickets were "of no value or of a value far less than she paid for"
(Complaint ¶¶ 19, 22-25). It is alleged that the Ticketmaster
representative never disclosed the obstructed nature of the seats, nor
did the tickets (id., ¶¶ 17-18). The complaint avers that
plaintiff "did not know or have reason to know that the tickets were
for obstructed-view seats" (id., ¶¶ 21-23).
The amended complaint alleges that "a multitude" of other ticket
holders for the subject concert are similarly situated, in that they
had either completely or partially obstructed views of the stage,
without any prior disclosure from Ticketmaster or the other defendants
(Complaint ¶¶ 26-27).
The amended complaint asserts five causes of action: (1) deceptive business practices, GBL 349, et seq.;
(2) breach of contract; (3) fraud; and (4) unjust enrichment. The first
cause of action seeks compensatory damages and a permanent injunction
against defendants' failure to disclose the viewing quality of seats.[FN1] The second seeks compensatory damages; the third, compensatory and punitive damages; and the fourth, restitution.
Defendants move to dismiss the
three non-statutory causes of action for breach of contract, fraud, and
unjust enrichment.
Plaintiff moves to certify this action as a class action,
designating a class of "all persons who purchased tickets, from any of
the Defendants, for seats in sections 408-420, 315-329, 211-219,
111-119, 65-69 in the arena known as Madison Square Garden . . . for
the September 7, 2001 or September 10, 2001 concert . . . ." (Order to
Show Cause [2/3/03] at 1-2.)[FN2]
Motion to Dismiss:
On a motion to dismiss for
failure to state a claim, the court is obliged to afford every
favorable inference to the pleader (Leon v Martinez, 84 NY2d 83 [1994]; Rovello v Orofino Realty Co., Inc.,
40 NY2d 633 [1976]). Indeed, "[m]odern pleading rules are 'designed to
focus attention on whether the pleader has a cause of action rather
than whether he has properly stated one.'" (Rovello, supra, at 636.)
The amended complaint is reasonably understood to allege an
implied agreement between the purchaser and seller of the tickets, that
the seats are so situated that the purchaser will be able to experience
not just the audible aspect of the live concert, but also, its visual
aspect. Defendants' alleged failure to afford plaintiff and her guests
the ability to view the concert, without prior disclosure, states a
claim for breach of contract. Therefore, the motion to dismiss the
second cause of action, for breach of contract, is denied.
Defendants' motion to dismiss the third cause of action for
fraud on grounds of lack of specificity, CPLR 3016 (b), and other
grounds, is granted. The fraud claim adds nothing to the breach of
contract claim.
Therefore, the motion to dismiss the third cause of action, for fraud, is granted.
The fourth cause of action seeks restitution of the ticket price
plus incidental charges, in whole or in part, under a theory of unjust
enrichment. The existence of an implied contractual duty to afford live
concert ticket holders an ability to see the stage, as alleged,
precludes a cause of action for unjust enrichment (Clark-Fitzpatrick, Inc. v Long Island R.R. Co.,
70 NY2d 382 [1987]). However, plaintiff is entitled to seek relief in
the alternative, should the existence of an implied contract not be
proven (CPLR 3017 [a]). Accordingly, the motion to dismiss the fourth
cause of action, for unjust enrichment, is denied.
Motion for Class Certification:
Plaintiff seeks class certification or, in the alternative, pre-certification discovery.[FN3]
To qualify for class
certification, a plaintiff must show (1) that the class is so numerous
as to make joinder impracticable; (2) questions of law or fact common
to the class predominate over individual questions; (3) the claims or
defenses of the class representatives are typical of those of the
class; (4) the class representatives will adequately protect the
interests of the class; and (5) class action litigation is superior to
individual litigation (CPLR 901 [a]).
Defendants are candid enough to acknowledge a problem with some
of the seating at the concert. Stamatia Berner, Vice President of Guest
Relations at Madison Square Garden, admits that her staff learned
during the first Michael Jackson concert on September 7, 2001, that
"due to the size of the concert stage and set, some Concert guests with
'Rear' or "Side' views would have a more obstructed view than their
tickets indicated" (Berner Aff. ¶ 4). She states, however, that a
contingency plan to accommodate aggrieved ticket holders was put into
effect, whereby Guest Services Representatives ("GSRs") were assigned
to assist guests at both the September 7th and 10th concerts with
re-seating or refunding due to obstruction problems (id., ¶¶
5-10). One of plaintiff's guests, Glen Rosenberg, submits an affidavit
contradicting the refund accommodation, but confirming that Madison
Square Garden staff offered to re-seat his party, albeit to no
practical avail (Rosenberg Aff. ¶ 12).
Defendants submit various affidavits which portray the
numerosity of the class in differing lights. For example, Berner
attests that a grand total of 12 complaint calls were received by
Madison Square Garden from ticket purchasers similarly situated to
plaintiff (Berner Aff. ¶ 11). Robert Beatty, Vice President of Box
Office Operations at Madison Square Garden, attests that only 26 ticket
holders for the September 7th concert were seated at "Side" or "Rear"
view sections of the arena at issue herein and that only 14 were seated
in the "Rear" view section on September 10th, with no seatings at all
in the "Side" view section (Beatty Aff. ¶¶ 3-4). John Wright,
Ticketmaster's Customer Service Coordinator, attests that Ticketmaster
received only 3 complaint letters from persons similarly situated
(Wright Aff. ¶ 3).
In contrast to the scant number of class members mentioned
above, James T. Cameron, III, Ticketmaster's Northeast Regional
Director of Client Services, attests that he uncovered a total of 839
"Side" or "Rear" view ticket purchasers for the September 7th concert,
and a total of 927 such purchasers for the September 10th concert
(Cameron Aff. ¶¶ 4-5). Those numbers do not reflect additional
purchasers which were handled by third party retail outlets, not yet
sued herein, but reaching a total of 3,929 affected ticket holders at
the September 7th concert and 3,911 at the September 10th concert (id., ¶¶ 6-8).
In view thereof, the numerosity factor for class certification has been satisfied.
However, the parties' submissions present an issue of fact as to
whether, and to what extent, similarly situated purchasers were
accommodated through either re-seating or refund. This issue can only
be resolved after continued discovery. However, it will not further
delay the granting of the certification motion.
The remaining factors appear to be satisfied. A class
consisting of concert ticket holders who received no advance notice
that their seats were inadequate for viewing purposes, share common
material issues of law and fact, relating to the fact of purchase, the
issue of notice, and the suitability of the seats. Moreover,
plaintiff's claims would be typical to those of the class members; to
wit, deceptive business practices, breach of contract, or unjust
enrichment (e.g., Friar v Vanguard Holding Corp., 78 AD2d 83 [2d Dept 1980] [claims arise from the same practice or course of conduct, and based on the same legal theory]).
The plaintiff appears to be an adequate class representative.
Finally, the class action form would be superior to a large
number of individual claimants having to pursue their respective rights
to small refunds (Weinberg v Hertz Corp., 116 AD2d 1, 5 [1st
Dept 1986] ["As a practical matter, a class action is not only a
superior method of adjudication, but the only method available for
determining the issues raised . . . ."], affd 69 NY2d 979 [1987]).
Accordingly, the motion for class certification is granted.
In the event that further discovery reveals that re-seating or
refunds heretofore made, reduce the number of class members to a single
digit number, defendants may move to decertify the class on this
ground.
Issues of notices shall be left for the order to be settled
herein. Briefly, the notice should be by publication. If the names and
addresses of other class members are available, for example through
credit card records, notice should also be furnished by mail.
Settle order.
Dated: September 15, 2004
E N T E R :
/s/
J. S. C.
Footnotes
Footnote 1: Defendant SFX is alleged to be a promoter of events staged at Madison Square Garden (Complaint ¶ 14).
Footnote 2: The
September 7, 2001 concert is presumed to be the other in the "series"
of Michael Jackson concerts referred to in the amended complaint (¶¶
11, 28).
Footnote 3:Plaintiff's
counsel acknowledges that pre-certification discovery has already gone
forward (Agulnick Aff. ¶ 7). Accordingly, the alternative relief only
extends to matters involving defendant World Events, L.L.C., a newly
added defendant by stipulation of the parties (id., ¶¶ 8-9, Ex. B).
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