Ovitz v. Bloomberg L.P

In Ovitz v. Bloomberg L.P., 77 AD3d 515, 909 N.Y.S.2d 710 (1st Dept (2010), aff'd 18 NY3d 753, 967 N.E.2d 1170, 944 N.Y.S.2d 725 (2012), the plaintiff challenged the automatic renewal provision of his Bloomberg terminal subscription agreement under GOL 5-903(2) and GBL 349. See 18 NY3d at 756. The Appellate Division held that 5-903(2) applied, and thus the automatic renewal provision was unenforceable since Bloomberg failed to provide plaintiff with the requisite notice that it intended to rely on the renewal provision. See 77 AD3d at 515-16. Nonetheless, the Appellate Division dismissed the action, refusing to issue a declaratory judgment because "plaintiff makes no allegations that he paid for services he did not receive." Id. at 516. The Court of Appeals affirmed, noting that Bloomberg waived its claim for fees, and, therefore, plaintiff incurred no monetary damages. See 18 NY3d at 757. The Court held that "in light of the absence of actual injury there is neither a justiciable controversy upon which declaratory judgment can be rendered, nor irreparable harm necessary for injunctive relief." Id. at 760. In sum, in Ovitz v. Bloomberg L.P., plaintiff entered into a two-year equipment lease with defendant that provided that it would be automatically renewed for successive two-year periods unless either the lessee (plaintiff) or lessor (Bloomberg) decided to terminate it prior to renewal by giving not less than 60 days' prior written notice to the other. Plaintiff continued use defendant's services until he notified Bloomberg on September 15, 2008 that he wanted to cancel his agreement; defendant refused, advising him that his agreement contained an automatic renewal provision. Two weeks after plaintiff commenced the subject class action against Bloomberg, defendant waived the early termination buy-out and collection of fees. The Court of Appeals accordingly dismissed plaintiff's claims under the General Obligations Law and General Business Law on the ground that plaintiff did not suffer any harm as a result of Bloomberg's alleged practices.