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Court Review of Elimination of Pension Benefits Proper Even though the Administrative Hearing Had Not Yet Been Held—No Need to Exhaust Administrative Remedies Where the Petition Does Not Raise an Issue of Fact that Should Initially Be Determined in the Administrative Hearing

The Third Department determined petitioner, a physician who served four school districts, could seek court review of the comptroller’s removal of his service credits (on the ground petitioner was an independent contractor, not an employee) and the consequent elimination of pension benefits, before an administrative hearing had been held:

“It is well settled that the Comptroller is vested with the exclusive authority to determine all applications for retirement benefits” … . Judicial review is limited to ascertaining whether the Comptroller’s determination is supported by substantial evidence in the record as a whole, in which case the determination must be upheld … .

Moreover, as a general rule, “one who objects to the act of an administrative agency must exhaust available administrative remedies before being permitted to litigate in a court of law” … . However, there are exceptions to the exhaustion doctrine, including where “resort to an administrative remedy would be futile or when its pursuit would cause irreparable injury” or where “an agency’s action is challenged as either unconstitutional or wholly beyond its grant of power” … . * * *

…[W]e find that the allegations in the petition do not raise an issue of fact that “‘should initially be addressed to the administrative agency having responsibility so that the necessary factual record can be established'” … . Under these circumstances, we conclude that petitioner has a cognizable constitutional claim regarding the prehearing removal of his service credits and cancellation of his retirement application that is ripe for our review and survives respondents’ motion to dismiss … . Matter of Kravitz v DiNapoli, 2014 NY Slip Op 08284, 3rd Dept 11-26-14

 

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