786 N.Y.S.2d 153 | N.Y. App. Div. | 2004
The motion court correctly dismissed the claims under General Business Law §§ 349 and 350. Plaintiffs, who purchased and drank the five beverages in question (herbal iced teas and fruit punch), failed to establish any actual damages resulting from defendants’ alleged deceptive practices and false advertising on the labels (see Stutman v Chemical Bank, 95 NY2d 24, 29 [2000]; St. Patrick’s Home for Aged & Infirm v Laticrete Intl., 264 AD2d 652, 655 [1999]). They contend the deceptive labels, which purportedly promised that consumption of the product would improve memory, reduce stress and improve overall health, caused them to spend money but receive no health benefits in return. They never alleged,- however, that the cost of the beverages was inflated by these misrepresentations or that their health was adversely affected by drinking the beverages. Thus, they have impermissibly set up the deception as both act and injury, a theory specifically rejected by our courts (see Small v Lorillard Tobacco Co., 94 NY2d 43, 56 [1999]; DeRiso v Synergy USA, 6 AD3d 152 [2004], lv denied 3 NY3d 610 [2004]).
The motion court also correctly dismissed plaintiffs’ fraud claims on the ground of failure to demonstrate justifiable reliance on misrepresentation, in light of the type of product involved and the express disclaimer on each label, which refuted the allegation of any promise of a health benefit. Additionally, plaintiffs failed to allege a cognizable injury (see Small v Lorillard Tobacco Co., supra, 94 NY2d at 57).
The court properly granted defendants’ motion for reargument based on the court’s conceded misapprehension of the resolution of a California case involving defendant Hornell. Concur—Tom, J.E, Andrias, Saxe, Williams and Sweeny, JJ.