Court Upholds Fraud and Negligent Misrepresentation Claims in School Bus Camera Class Action Lawsuit
October 9, 2024 — In a significant step forward for our clients and the proposed class they represent, the Supreme Court of the State of New York, Nassau County, denied key parts of the Town of Hempstead’s motion to dismiss claims in a class action lawsuit challenging its implementation of the Stop-Arm Camera Program. The claims for fraud and negligent misrepresentation, among others, will now proceed, allowing us to advocate for accountability and transparency on behalf of the affected individuals.
The lawsuit, brought by Sergey Kadinsky on behalf of himself and others similarly situated, challenges the legality and fairness of the Town’s agreement with Bus Patrol, a private vendor contracted to operate school bus camera systems and manage fines for violations of New York’s Vehicle and Traffic Law § 1174(a). The class action alleges that the Town’s practices, including its reliance on Bus Patrol to generate and certify evidence of violations, resulted in notices of liability that were misleading and induced improper payments from vehicle owners. It also alleges that the Town has been issuing Notices of Liability without jurisdiction.
Representing the plaintiffs are Martin Bienstock of Bienstock PLLC and Joseph Aron of Aron Law PLLC, who have committed to holding municipalities and their private contractors accountable for ensuring fairness and transparency in traffic enforcement systems.
The October 3, 2024, decision by Acting Justice Philippe Solages, Jr., rejected arguments by the Town of Hempstead that the claims for fraud and negligent misrepresentation should be dismissed. Specifically, the court ruled that the plaintiffs adequately alleged that the Town knowingly misrepresented the sufficiency of its evidence in notices of liability, which vehicle owners relied upon to their detriment. Justice Solages highlighted the potential for a special relationship between the Town and vehicle owners based on the Town’s certifications, a critical element of the plaintiffs’ negligent misrepresentation claim.
While the court dismissed certain other claims in the amended complaint, including allegations of unjust enrichment and constitutional violations, the survival of the fraud and negligent misrepresentation claims affirms the validity of the plaintiffs’ legal theory. This outcome paves the way for discovery and further proceedings to uncover the full extent of the alleged misconduct.
The lawsuit against the Town of Hempstead is one of several cases filed by Bienstock PLLC and Aron Law PLLC challenging similar practices across Long Island, including pending claims against Suffolk County and Bus Patrol. These cases aim to address systemic issues in automated traffic enforcement programs that disproportionately affect residents and raise questions about the involvement of private, profit-driven vendors in public law enforcement functions.
We are proud of this legal victory and remain committed to securing justice for those impacted by these practices. The court’s decision validates the need for transparency and accountability in municipal programs that impose fines and penalties on the public.
For more information or updates on this case and others, please contact Bienstock PLLC or Aron Law PLLC.
Read More
Help for Hacked Bank Accounts: EFTA Now Covers Fraudulent Wire Transfers
The U.S. District Court for the Southern District of New York has issued a new decision holding that the Electronic Fund Transfer Act (EFTA) applies to unauthorized debits from consumer accounts tied to fraudulent wire transfers.Refusing to Comply with Civil Investigative Demands Lawfully Issued by the Department of Justice: A Very Bad Idea
Judge Dillon’s ruling sheds light on several key issues that should concern any corporation under FCA investigationSupreme Court Denies Certiorari in Holbrook Case
Lawyers don’t usually post about cases they’ve lost, but our case against the Tennessee Valley Authority was so fascinating, and our loss so heart-rendering, that I thought it worth sharing with colleagues and friends.
Help for Hacked Bank Accounts: EFTA Now Covers Fraudulent Wire Transfers
The U.S. District Court for the Southern District of New York has issued a new decision holding that the Electronic Fund Transfer Act (EFTA) applies to unauthorized debits from consumer accounts tied to fraudulent wire transfers.Refusing to Comply with Civil Investigative Demands Lawfully Issued by the Department of Justice: A Very Bad Idea
Judge Dillon’s ruling sheds light on several key issues that should concern any corporation under FCA investigationSupreme Court Denies Certiorari in Holbrook Case
Lawyers don’t usually post about cases they’ve lost, but our case against the Tennessee Valley Authority was so fascinating, and our loss so heart-rendering, that I thought it worth sharing with colleagues and friends.