## Facts

- Frederic E. Weinberg sued The Hertz Corporation in New York Supreme Court in a putative class action on behalf of Hertz customers who rented cars in New York and allegedly paid unlawful or excessive charges.
- Weinberg alleged Hertz’s practices were unfair or deceptive and also breached rental contracts, challenging charges that included (a) allegedly excessive refueling charges, (b) charges for Collision Damage Waiver (CDW), (c) charges for Personal Accident Insurance (PAI), and (d) late-return charges that allegedly imposed extra daily fees without pro-rating.
- Weinberg asserted statutory and contract-based theories, including claims under General Business Law (GBL) § 349 and claims framed as unconscionable or in bad faith under UCC provisions, along with breach-of-contract claims.
- Earlier in the litigation, the trial court sustained several causes of action and permitted class certification in connection with actual damages sought under GBL § 349, with limited discovery on numerosity.
- After additional discovery, Weinberg renewed his motion for class certification.
- The trial court (Special Term) denied the renewed motion, ruling that Weinberg did not satisfy CPLR 901(a)(5), which requires that a class action be superior to other available methods for fair and efficient adjudication.
- In denying certification, Special Term credited Hertz’s contention that identifying class members and providing notice would require searching millions of non-computerized rental agreements at a cost of at least $30 million, which it viewed as disproportionate given an asserted average individual claim of about $31.
- Weinberg appealed, arguing that Hertz’s $30 million estimate was unsupported and that class treatment is appropriate where many consumers have small claims arising from a common course of conduct.

## Issues

1. Whether the proposed consumer class action satisfied CPLR 901(a)(5)’s “superiority” requirement when Hertz argued that identifying class members and providing notice would be prohibitively expensive.
2. Whether the asserted small average amount of each individual claim weighed against class certification in a case alleging widespread consumer overcharges.

## Decision

- The Appellate Division, First Department reversed the order denying class certification.
- The court held that the record did not support Hertz’s claim that it would cost $30 million to define the class and provide notice, finding the assertion inadequately substantiated.
- The court found it implausible that a nationwide company could not obtain needed rental data from its offices or processing operations without spending millions of dollars.
- The court rejected the idea that a small average claim amount defeats class certification, explaining that the size of each class member’s claim is not of real legal significance to the superiority analysis where many claims are too small to be brought individually.
- The matter was sent back for further proceedings consistent with granting class treatment. (The decision was later affirmed without opinion by the New York Court of Appeals.)

## Legal Principles

- Under CPLR 901(a)(5), a proposed class must show that a class action is superior to other methods for the fair and efficient adjudication of the controversy.
- In consumer cases alleging many similar small losses, class treatment may be superior because individual suits are unlikely and aggregation can allow adjudication of claims that would otherwise go unaddressed.
- A defendant’s claimed administrative burden and expense in identifying class members and providing notice does not defeat certification when the claim is unsupported or exaggerated on the record.
- The “average claim” amount, standing alone, is not determinative; very small individual damages can favor class treatment because they make separate litigation unrealistic.
- Courts may consider related litigation involving similar practices when assessing whether a defendant’s assertions about administrative infeasibility are credible.

## Conclusion

Weinberg held that a consumer overcharge case against Hertz satisfied CPLR 901(a)(5)’s superiority requirement because Hertz did not adequately support its asserted $30 million class-notice cost, and the small size of individual claims did not justify denying class certification where class treatment provided a fair and efficient means to resolve numerous similar claims.


Weinberg v. Hertz Corp., 116 A.D.2d 1, 499 N.Y.S.2d 693 (1986)