Bill Text: NY A04955 | 2009-2010 | General Assembly | Introduced

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Bill Title: An act to amend the general business law, in relation to a private right of action for any violation of section 352-e of such law involving real estate securities

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-01-06 - referred to judiciary [A04955 Detail]

Download: New_York-2009-A04955-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4955
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 10, 2009
                                      ___________
       Introduced by M. of A. V. LOPEZ -- read once and referred to the Commit-
         tee on Judiciary
       AN ACT to amend the general business law, in relation to a private right
         of  action  for  any  violation of section 352-e of such law involving
         real estate securities
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  352-e  of the general business law is amended by
    2  adding a new subdivision 10 to read as follows:
    3    10. (A) ANY PURCHASER OR SELLER OF ANY REAL ESTATE SECURITY AS DEFINED
    4  IN THIS SECTION MAY BRING AN ACTION OR PROCEEDING FOR DAMAGES OR  RESTI-
    5  TUTION,  OR  BOTH, AND SUCH OTHER RELIEF AS THE COURT MAY DEEM APPROPRI-
    6  ATE, FOR ANY VIOLATION OF THIS ARTICLE, SUBJECT TO THE REQUIREMENTS  SET
    7  FORTH IN THIS SUBDIVISION.
    8    (B)  PRIOR TO THE COMMENCEMENT OF SUCH ACTION, THE PURCHASER OR SELLER
    9  OF THE SECURITY OR THE  ATTORNEY  FOR  SUCH  PURCHASER  OR  SELLER  MUST
   10  FORWARD  A  COPY  OF  THE  PROPOSED  COMPLAINT  TO THE ATTORNEY GENERAL,
   11  TOGETHER WITH A REQUEST FOR THE CERTIFICATION OF SUCH  COMPLAINT.    THE
   12  ATTORNEY  GENERAL  MAY REQUIRE THE PLAINTIFF OR THE PLAINTIFF'S ATTORNEY
   13  TO PROVIDE SUCH FACTUAL INFORMATION AS THE ATTORNEY GENERAL MAY REQUIRE.
   14    (C) THE ATTORNEY GENERAL SHALL REVIEW THE COMPLAINT, AND MAY ISSUE  AN
   15  ORDER PROHIBITING THE COMMENCEMENT OF THE ACTION IF THE ATTORNEY GENERAL
   16  DETERMINES  THAT  THE  COMPLAINT  LACKS  A  SUBSTANTIAL FACTUAL OR LEGAL
   17  BASIS.  IF IT IS DETERMINED THAT SUCH A SUBSTANTIAL  BASIS  EXISTS,  THE
   18  ATTORNEY  GENERAL  SHALL ISSUE A CERTIFICATION AUTHORIZING THE COMMENCE-
   19  MENT OF THE ACTION.
   20    (D) UNDER NO CIRCUMSTANCES MAY  AN  ACTION  BE  COMMENCED  UNDER  THIS
   21  SUBDIVISION  UNLESS THE ATTORNEY GENERAL HAS ISSUED THE REQUIRED CERTIF-
   22  ICATION OR THE ATTORNEY GENERAL HAS NOT ACTED WITHIN THE LATER OF:   (I)
   23  SIXTY DAYS FOLLOWING THE SUBMISSION OF THE COMPLAINT OR (II) THIRTY DAYS
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08407-01-9
       A. 4955                             2
    1  FOLLOWING  THE  RECEIPT  OF THE PLAINTIFF'S RESPONSE TO A REQUEST BY THE
    2  ATTORNEY GENERAL FOR ADDITIONAL FACTUAL INFORMATION.
    3    (E)  AN ACTION BROUGHT BY A PURCHASER OR SELLER OF A REAL ESTATE SECU-
    4  RITY PURSUANT TO THIS SUBDIVISION SHALL BE COMMENCED WITHIN SIX YEARS OF
    5  THE DATE THE ACTS OR OMISSIONS COMPLAINED OF WERE COMMITTED,  OR  WITHIN
    6  TWO YEARS OF THE DISCOVERY OF THE FRAUD, WHICHEVER OCCURS LATER.
    7    (F)  THE FILING OF A REQUEST FOR CERTIFICATION SHALL BE DEEMED TO TOLL
    8  AN OTHERWISE UNEXPIRED STATUTE OF LIMITATIONS FOR THE COMMENCEMENT OF AN
    9  ACTION BROUGHT UNDER THIS ARTICLE FOR A PERIOD  OF  ONE  HUNDRED  TWENTY
   10  DAYS FROM THE DATE THAT SUCH REQUEST FOR CERTIFICATION IS FILED WITH THE
   11  ATTORNEY GENERAL.
   12    (G)  IF  THE  ATTORNEY  GENERAL SO REQUESTS, THE PARTIES TO ANY ACTION
   13  COMMENCED PURSUANT TO THIS SUBDIVISION SHALL SERVE THE ATTORNEY  GENERAL
   14  WITH  COPIES  OF  ALL  PAPERS FILED IN THE ACTION AND WITH COPIES OF ALL
   15  DEPOSITION TRANSCRIPTS AND  DOCUMENTS  PRODUCED  IN  DISCOVERY,  AT  THE
   16  EXPENSE OF THE STATE.
   17    (H) IN ANY SUCH ACTION OR PROCEEDING BROUGHT PURSUANT TO THIS SUBDIVI-
   18  SION,  THE  COURT  MAY AWARD A PREVAILING PLAINTIFF REASONABLE COSTS AND
   19  ATTORNEY'S FEES FOR ANY CLAIM ARISING UNDER THIS ARTICLE.
   20    (I) NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO AFFECT
   21  OR LIMIT THE ABILITY  OF  THE  ATTORNEY  GENERAL  TO  INTERVENE  IN  ANY
   22  PROCEEDING  COMMENCED  PURSUANT  TO  THIS  SUBDIVISION, OR TO COMMENCE A
   23  SEPARATE ACTION  BASED  UPON  THE  SAME  FACTS  AND  CIRCUMSTANCES  THAT
   24  RESULTED  IN  THE  ACTION  COMMENCED PURSUANT TO THIS SUBDIVISION, OR TO
   25  PURSUE ANY OTHER REMEDY AVAILABLE TO THE STATE.
   26    (J) NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO AFFECT
   27  THE VALIDITY OF ANY PROVISION OF A WRITTEN AGREEMENT, OTHERWISE ENFORCE-
   28  ABLE, TO ARBITRATE ANY DISPUTE OR CLAIM, INCLUDING ANY  CLAIM  THAT  MAY
   29  ARISE  UNDER  THIS  ARTICLE,  OR TO ABRIDGE ANY OTHER REMEDY THAT MAY BE
   30  AVAILABLE PURSUANT TO LAW.
   31    S 2. This act shall take effect immediately.