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NYC Taxi and Limousine Commission (TLC) Had the Authority to Enter a 10-Year Exclusive Agreement with Nissan for the Production of the “Taxi of Tomorrow (T o T),” NYC’s Official Taxicab

The Court of Appeals determined the NYC Taxi and Limousine Commission (TLC) did not exceed the authority granted the commission by the City Council when it entered a 10-year exclusive agreement with Nissan to provide the “Taxi of Tomorrow (T o T),” New York City’s official taxicab:

A legislature may enact a general statutory provision and delegate power to an agency to fill in the details, as long as reasonable safeguards and guidelines are provided to the agency (see Boreali v Axelrod, 71 NY2d 1, 10 [1987]). As a creation of a legislative body, the TLC possesses the powers expressly conferred by the City Council, as well as those “required by necessary implication” … . “[A]n agency can adopt regulations that go beyond the text of [its enabling] legislation, provided they are not inconsistent with the statutory language or its underlying purposes” … . The question before us is whether the authority granted to the TLC by the City Council included the power to enact the ToT rules, or whether the agency has exceeded its authority and acted in a manner not contemplated by the legislative body … .  * * *

The City Council granted the TLC extremely broad authority to enact rules, including the ToT rules. The TLC was created with the stated purposes of “continuance, further development and improvement of taxi and limousine service in the city of New York” (NY City Charter § 2300). The City Charter provides that the TLC is authorized, “consonant with the promotion and protection of the public comfort and convenience[,] to adopt and establish an overall public transportation policy governing taxi . . . services as it relates to the overall public transportation network of the city; to establish . . . standards for equipment safety and design; . . . and to set standards and criteria for the licensing of vehicles” used in taxi service (NY City Charter § 2300 [emphasis added]). * * *

In granting the TLC this broad authority, the City Charter includes guidelines for the TLC to consider, such as “safety, and design, comfort, convenience, noise and air pollution control and efficiency in the operation of vehicles” (NY City Charter § 2303 [b] [6]). Although the TLC has generally applied the “specs method” when promulgating rules about the design of taxis, it points to a major shortcoming of that method — the situation where no available model meets the specs in the rules as, for example, when Ford discontinued the Crown Victoria … . The TLC determined that “[t]he most obvious alternative to vehicle specifications [is the] competitive selection of taxicab vehicle models,” as embodied in the ToT project … . This new method was intended to be a more efficient way to reach the same result and, in our view, falls within the broad authority granted to the TLC. Greater N.Y. Taxi Assn. v New York City Taxi & Limousine Commn., 2015 NY Slip Op 05514, CtApp 6-25-15

 

Liquor Authority Properly Complied with the Requirements for Issuing a Liquor License When Three or More Licensed Premises Are Located Within 500 Feet

The First Department, in a full-fledged opinion by Justice Acosta, determined a petition to annul the NYS Liquor Authority’s conditional approval of a liquor license was properly denied.  The Liquor Authority properly considered the factors associated with the “500-foot-rule” requiring good cause for the issuance of a license when there are three or more licensed premises within 500 feet:

Ordinarily, applications for licenses to sell liquor for consumption on premises “shall be issued to all applicants except for good cause shown” (ABCL § 64[1]); however, no such license shall be granted for any premises within 500 feet of three or more existing licensed and operating premises, unless the Authority “determines that granting such license would be in the public interest” (ABCL § 64[7][b], [f]). In determining whether the granting of a license will promote the public interest, the Authority may consider:

“(a) The number, classes and character of licenses in proximity to the location and in the particular municipality or subdivision thereof.

“(b) Evidence that all necessary licenses and permits have been obtained from the state and all other governing bodies.

“(c) Effect of the grant of the license on vehicular traffic and parking in proximity to the location.

“(d) The existing noise level at the location and any increase in noise level that would be generated by the proposed premises.

“(e) The history of liquor violations and reported criminal activity at the proposed premises.

“(f) Any other factors specified by law or regulation that are relevant to determine the public convenience and advantage and public interest of the community” (ABCL § 64[6-a]).

These factors are intended to guide the Authority “in assuring that appropriate factors are taken into consideration which relate to the business and the impact it has . . . [and] to assure that quality of life impacts are fully incorporated into the responsible state decision-making apparatus” … .

In cases implicating this 500-foot rule, “[b]efore it may issue any such license, the [A]uthority shall conduct a hearing, upon notice to the applicant and the municipality or community board, and shall state and file in its office its reasons therefor” (ABCL § 64[7][f]).

“A reviewing court is not entitled to interfere in the exercise of discretion by an administrative agency unless there is no rational basis for the exercise, or the action complained of is arbitrary and capricious” … . Courts look to whether the determination “is without sound basis in reason and is generally without regard to the facts” … .

Regarding the substance of the reasons stated by the Authority, this Court has held that something more than a “perfunctory recitation” is needed to comply with the requirement that the Authority state its reasons for concluding that issuance of a license would be in the public interest … .

Here, the Authority’s written statement sets forth detailed, concrete reasons for its determination, made after a hearing, that issuance of a liquor license … would be in the public interest (ABCL § 64[7][b], [f]). Matter of BarFreeBedford v New York State Liq. Auth., 2015 NY Slip Op 05428, 1st Dept 6-23-15

 

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Supreme Court Properly Annulled New York Division of Human Rights’ Determination there Was No Probable Cause to Believe the School District Discriminated against Petitioner When It Refused to Hire Her Because of Her Anticipated Absence (Due to Pregnancy)

The Fourth Department affirmed Supreme Court’s annulment of the New York Division of Human Rights’ (SDHR’s) finding, without a hearing, there was no probable cause to believe the school district discriminated against the petitioner. Petitioner was not hired because of her anticipated absence due to pregnancy. The school district’s stated reason for not hiring petitioner was that she was going to be unavailable to counsel students and there was concern about the resulting lack of continuity of counseling services for the students.  However, the petitioner’s unavailability was due to her pregnancy and discrimination could therefore be inferred:

“Where, as here, a determination of no probable cause is rendered [by SDHR] without holding a public hearing pursuant to Executive Law § 297 (4) (a), the appropriate standard of review is whether the determination was arbitrary and capricious or lacking a rational basis’ ” … . “Probable cause exists only when, after giving full credence to the complainant’s version of the events, there is some evidence of unlawful discrimination” … . “There must be a factual basis in the evidence sufficient to warrant a cautious [person] to believe that discrimination had been practiced” … . The complainant’s factual showing must be accepted as true on a probable cause determination … . While our standard of review is highly deferential to the agency’s determination …, we agree with the court that SDHR’s determination “was not rationally based upon the evidence presented” … .

Executive Law § 296 prohibits an employer from refusing to hire or employ an individual based on, inter alia, the individual’s sex. In opposition to the petition, the District argued that it decided not to rehire petitioner because of her unavailability and its concern for continuity of counseling services for its students. Petitioner was unavailable to work, however, because of her pregnancy, and we conclude that discrimination could be inferred from the record before us … . The District relies on Roslyn Union Free Sch. Dist. v State Div. of Human Rights (72 AD2d 808) in support of its argument that it did not discriminate against petitioner. To the extent that Roslyn holds that a decision not to hire an individual because the individual is pregnant is not a form of discrimination (see id. at 809-810), we decline to follow it. Matter of Mambretti v New York State Div. of Human Rights, 2015 NY Slip Op 05384, 4th Dept 6-19-15

 

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Court Deferred to the Agency’s Interpretation of a Statute Because the Interpretation Involved Knowledge and Understanding of the Underlying Operational Practices (In the Usual Case, a Court Will Not Defer to an Agency’s Interpretation of a Statute)/The Term “Business Enterprise” in Tax Law 14 (a) Refers to the Taxable Entity, Not the Legal Entity

The Third Department deferred to the interpretation of a statute by the Tax Appeals Tribunal which found that petitioners were not entitled to Qualified Enterprise Zone Enterprise (QEZE) tax reduction credits and refundable Empire Zone (EZ) wage credits.  The case turned on the Tribunal’s definition of a business enterprise.  The Tribunal determined the term refers to the taxable entity, not the legal entity. Because the interpretation of the relevant statute, Tax Law 14 (a), involved knowledge and understanding of the underlying operational practices, the court deferred to the agency’s determination. (In the usual case a court need not defer to an agency’s interpretation of a statute):

The parties’ primary disagreement here centers on whether the term business enterprise under Tax Law § 14 (a) refers to the taxable entity or the legal entity. The Tax Law does not define business enterprise, and this Court will “defer to the governmental agency charged with the responsibility for administration of [a] statute in those cases where interpretation or application involves knowledge and understanding of underlying operational practices” … . While, as a general rule, courts will not defer to administrative agencies in matters of pure statutory interpretation, where, as here, the question is “‘one of specific application of a broad statutory term in a proceeding in which the agency administering the statute must determine it initially,'” deference is appropriate … . To prevail over the Tribunal’s construction of the statute, petitioners must establish that their “interpretation of the statute is not only plausible, but also that it is the only reasonable construction”… .

In our view, it cannot be said that the Tribunal acted irrationally in construing the term business enterprise in accordance with an entity’s classification for state and federal income tax purposes. Matter of Ayoub v Tax Appeals Trib. of the State of N.Y., 2015 NY Slip Op 05240, 3rd Dept 6-18-15

 

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Zoning Board’s Interpretation of Village Ordinances Upheld—Keeping of Chickens Is Not an Allowed “Residential Use”

The Third Department determined the village zoning board of appeals’ interpretation of a zoning ordinance had a rational basis.  Petitioner sought a ruling allowing him to keep chickens in a residential zone. Because “poultry husbandry” was specifically mentioned in the zoning ordinances as an agricultural use, and was not mentioned as an allowed residential use, the board’s interpretation was upheld as “neither irrational nor unreasonable:”

Here, Village of Champlain Zoning Code § 119-20 (B) states that the permitted uses in an R1 residential district are “one- and two-family dwellings” and “accessory uses.” The code allows for accessory uses that are “of a nature customarily incidental and subordinate to the principal use of the structure, such as garages, outbuildings, swimming pools, energy collection devices and the keeping of domesticated animals” (Village of Champlain Zoning Code § 119-16). The code also defines “agriculture” as “[t]he use of land for agricultural purposes, including tilling of the soil, dairying, pasture, apiculture, arboriculture, horticulture, floriculture, viticulture, forestry, animal and poultry husbandry and the necessary accessory uses for packing or storing of products” (Village of Champlain Zoning Code § 119-16). The code further states that “[a]ny use not listed as permitted [w]ithin a [z]oning district is assumed to be prohibited in that [z]oning district” (Village of Champlain Zoning Code § 119-191). Matter of Meier v Village of Champlain Zoning Bd. of Appeals, 2015 NY Slip Op 05245, 3rd Dept 6-18-15

 

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There Was a Rational Bases for Fire District Board of Commissioners’ Rejection of Petitioner’s Bid to Supply a Radio Dispatch System—Court Cannot Substitute Its Own Judgment for the Board’s

The Second Department determined the respondent board (fire district commissioners) had a rational basis for rejecting petitioner’s bid for a radio dispatch system. As long as a rational basis for an administrative decision exists it must be upheld.  A court may not substitute its own judgment:

General Municipal Law § 103(1) provides that, in awarding any contract in excess of $35,000, public entities must award the contract to “the lowest responsible bidder.” “The central purposes of New York’s competitive bidding statutes are the (1) protection of the public fisc by obtaining the best work at the lowest possible price; and (2) prevention of favoritism, improvidence, fraud and corruption in the awarding of public contracts'”… . Nevertheless, it is a municipality’s right to determine whether a bid meets its specifications, and that determination is entitled to deference if it is supported by “any rational basis” … . Thus, ” a court may not substitute its judgment for that of the board or body it reviews unless the decision under review is arbitrary and unreasonable and constitutes an abuse of discretion'” … . It is the petitioner’s burden to demonstrate that a bid has been wrongly awarded … .

Here, the board identified three reasons for rejecting the petitioner’s bid: (1) the petitioner did not demonstrate that it had a service location within 20 miles of the fire district; (2) the petitioner offered to supply equipment which differed from the bid specifications; and (3) over the life of the contract, the monthly maintenance costs would render the petitioner’s bid more expensive than Eastern’s. Although the petitioner disagrees with the board’s conclusions as to each of these points, any one of them would provide a rational basis for the rejection of the petitioner’s bid. Matter of Hello Alert, Inc. v East Moriches Fire Dist., 2015 NY Slip Op 05189, 2nd Dept 6-17-15

 

Resignation in the Face of Immediate Termination Constituted Termination by Final Agency Action (Reviewable by a Court)

The Third Department upheld the determination of the Division of State Police Hearing Board and the termination of the petitioner (a State Trooper). The fact that petitioner had resigned did not deprive the court of its review power, despite the resulting absence of a “final agency determination.”  The petitioner had been shown the superintendent’s termination determination and was told he would be terminated if he did not immediately resign.  Petitioner resigned. The Third Department held that resignation under such a circumstance is effectively a termination by a final agency action and is therefore reveiwable by a court:

… [W]e consider respondents’ argument that, since petitioner resigned, there was no final agency action over which the Court has jurisdiction. Although a resignation “would ordinarily be beyond our review, exceptions exist where . . . the resignation was allegedly ineffective and involuntary” … . It is undisputed that the Superintendent had signed a written decision terminating petitioner’s employment. Significantly, the document was handed to petitioner and he was then told that he had 10 minutes to accept an “option” of resigning. Under the narrow circumstances, petitioner was effectively terminated by a final agency action when he was handed the signed termination document. Matter of Lyons v Superintendent of State Police, Joseph D’Amico, 2015 NY Slip Op 04892, 3rd Dept 6-11-15

 

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The Three-Year Statute of Limitations in the Education Law Need Not Be Raised as a Defense—Here the Charges Against a Teacher Were Time-Barred—The Department of Education (DOE) Did Not Demonstrate the Charges Were Criminal (to Which the Three-Year Statute Would Not Have Applied)

The First Department determined the third set of charges brought against petitioner-teacher, alleging the teacher improperly obtained his daughter’s admission to NYC Department of Education (DOE) schools for which she was not zoned, was time-barred.  Although the three-year statute of limitations in the Education Law would not apply had the allegations constituted a crime, the hearing officer did not find the teacher’s conduct to be criminal. The court determined that the first two set of charges against the teacher did not justify termination (the penalty imposed) and remitted the matter for a lesser punishment. The court noted that the statute of limitations in the Education Law need not be raised as a defense:

Supreme Court did not exceed its authority in finding that the third set of charges against petitioner was time-barred. Education Law § 3020-a(1) requires that disciplinary charges against a teacher be brought within three years from the date of the alleged misconduct, unless the alleged misconduct constituted a crime when committed. Petitioner was not required to raise the statutory time limitation set forth in Education Law § 3020-a(1) as a defense in the disciplinary proceeding. Where, as here, “a statute creates a right unknown at common law, and also establishes a time period within which the right may be asserted, the time limit is . . . a condition attached to the right as distinguished from a [s]tatute of [l]imitations which must be asserted by way of defense” … . Accordingly, DOE had the burden of establishing that it met the time requirement set forth in Education Law § 3020-a(1) or that the crime exception to the time requirement applied … . DOE failed to meet its burden. Matter of Suker v New York City Board/ Dept. of Educ., 2015 NY Slip Op 04940, 1st Dept 6-11-15

 

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No “Reasonable Suspicion” Justifying Vehicle Stop—Revocation of License for Refusal of Chemical Test Reversed

Petitioner was arrested for driving while intoxicated and refused the chemical test.  As a result petitioner’s license was revoked by an administrative law judge.  The Second Department annulled the determination of the Department of Motor Vehicles Appeals Board (which upheld the revocation).  The court determined the arresting officer did not have “reasonable suspicion” justifying the initial stop.  Petitioner was in a parked car with the engine running. The officer parked behind petitioner’s car, blocking any exit, and then approached the car. Only then did the officer notice signs of intoxication:

At a hearing held pursuant to Vehicle and Traffic Law § 1194, the hearing officer is required to determine, inter alia, whether the police lawfully arrested the operator of the motor vehicle for operating such vehicle while under the influence of alcohol or drugs in violation of Vehicle and Traffic Law § 1192 … . In order for an arrest to be lawful, the initial stop must itself be lawful (see People v De Bour, 40 NY2d 210, 222). Under the circumstances of this case, where the officer prevented the petitioner from departing, activated his vehicle’s emergency lights, and shined a light into the petitioner’s parked vehicle, a forcible stop and detention occurred … . The Department of Motor Vehicles, however, failed to establish that there was reasonable suspicion to justify the forcible stop and detention of the petitioner’s person or vehicle … and, accordingly, the challenged determination cannot be sustained. Matter of Stewart v Fiala, 2015 NY Slip Op 04857, 2nd Dept 6-10-15

 

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Termination of Teacher’s Probationary Employment and Teaching Licenses Was “Abitrary and Capricious” Because the Ruling Was Based In Part Upon an Issue, Absenteeism, of Which the Teacher Had Not Been Given Notice

The First Department found the school district’s termination of petitioner’s probationary employment as a teacher and termination of her teaching licenses was “arbitrary and capricious” because it was based in part on an issue, absenteeism, of which the teacher had not been given notice. Matter of Brower v New York City Dept. of Educ., 2015 NY Slip Op 04764, 1st Dept 6-9-15

 

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