World Trade Ctr. Lower Manhattan Disaster Site Litig. Stanislaw Faltynowicz v. Battery Park City Auth.
Opinion
This action involves the tort and labor law claims of workers whose participation in post-9/11 cleanup efforts allegedly caused them to develop respiratory illnesses. The United States District Court for the Southern District of New York (Alvin K. Hellerstein, J. ) granted summary judgment against the workers, holding that the law that had revived their otherwise time-barred claims was unconstitutional under the New York State Constitution. We previously certified to the New York Court of Appeals ("NYCOA") two questions implicated by this consolidated appeal. The NYCOA having answered, we now VACATE and REMAND.
BACKGROUND
Plaintiffs are eighteen workers who claim to have developed respiratory illnesses as a result of their participation in the cleanup efforts following the terrorist attacks of September 11, 2001. They sued defendant Battery Park City Authority ("BPCA"), a public corporation created by the New York Legislature,
see
The district court dismissed plaintiffs' original suits, as well as hundreds of similar ones, for failing to serve timely notices of claim on BPCA and other public entities named as defendants.
See
The New York State Legislature responded to that rash of dismissals by passing "Jimmy Nolan's Law,"
BPCA sought and obtained summary judgment on plaintiffs' claims on the ground that Jimmy Nolan's Law was unconstitutional under the New York State Constitution. Plaintiffs appealed the district court's decision to this Court, arguing that New York's capacity-to-sue rule, under which "municipalities and other local governmental corporate entities and their officers lack capacity to mount constitutional challenges to acts of the State and State legislation,"
City of New York v. State of New York
,
Finding an "absence of authoritative guidance" on the standards we should use to evaluate plaintiffs' arguments,
In re World Trade Ctr.
,
(1) Before New York State's capacity-to-sue doctrine may be applied to determine whether a State-created public benefit corporation has the capacity to challenge a State statute, must it first be determined whether the public benefit corporation "should be treated like the State," see Clark-Fitzpatrick, Inc. v. Long Island R.R. Co. [70 N.Y.2d 382 ,521 N.Y.S.2d 653 ],516 N.E.2d 190 , 192 (N.Y. 1987), based on a "particularized inquiry into the nature of the instrumentality and the statute claimed to be applicable to it," see John Grace & Co. v. State Univ. Constr. Fund [44 N.Y.2d 84 ,404 N.Y.S.2d 316 ],375 N.E.2d 377 , 379 (N.Y. 1978), and if so, what considerations are relevant to that inquiry?; and
(2) Does the "serious injustice" standard articulated in Gallewski v. H. Hentz & Co. [301 N.Y. 164 ],93 N.E.2d 620 (N.Y. 1950), or the less stringent "reasonableness" standard articulated in Robinson v. Robins Dry Dock & Repair Co. [238 N.Y. 271 ],144 N.E. 579 (N.Y. 1924), govern the merits of a due process challenge under the New York State Constitution to a claim-revival statute?
In re World Trade Ctr.
,
The NYCOA has now responded. The Court answered the first question that "no 'particularlized inquiry' is necessary to determine whether public benefit corporations should be treated like the State for purposes of capacity."
Matter of World Trade Ctr. Lower Manhattan Disaster Site Litig.
,
that "state entities lack capacity to challenge the constitutionality of a state statute," with only a few "narrow" exceptions.
The Court reformulated the second question to ask "[u]nder
Robinson
and
Gallewski
, what standard of review governs the merits of a New York State Due Process Clause challenge to a claim-revival statute?"
Following supplemental briefing from the parties on the implications of the NYCOA's answers to the certified questions, this appeal is ripe for resolution.
DISCUSSION
The NYCOA's decision makes clear that BPCA, like any other state entity, may challenge the constitutionality of Jimmy Nolan's Law only if it qualifies for one of the "narrow" exceptions to the capacity-to-sue rule.
BPCA claims that it qualifies for the proprietary-interest exception, which permits a state entity to challenge the constitutionality of "State legislation [that] adversely affects a municipality's proprietary interest in a specific fund of moneys."
City of New York v. State
,
Two cases serve as helpful guideposts in assessing the applicability of the exception. In the first,
Gulotta v. State
, three New York counties and their county executives brought an action challenging "the system of State mandates," which consisted of "various laws which require[d] the [c]ounties to make expenditures."
The second case, and the principal case on which BPCA relies, is
County of Rensselaer v. Regan
,
There may be cases that fall between
Gulotta
and
Rensselaer
, and potentially present a close question on whether the proprietary-interest exception applies. This is not one of them. Jimmy Nolan's Law, at most, has an indirect effect on BPCA's general fund, making the present case an easier one than
Gulotta
, where the challenged laws actually "require[d] the [c]ounties to make expenditures."
Indeed, if BPCA's logic were followed, the proprietary-interest exception would permit a public entity to challenge the constitutionality of any law that could potentially expose it to greater liability, so long as the entity claimed that it had some sort of fund from which a judgment might be paid. That would hardly be a narrow exception to New York's capacity-to-sue rule.
We have little difficulty concluding that, in this case, BPCA does not qualify for any exception to the general rule that state entities lack the capacity to raise constitutional challenges to state statutes, and its challenge to Jimmy Nolan's Law must therefore be rejected. Accordingly, we need not reach the question whether that law is consistent with the Due Process Clause of the New York State Constitution.
CONCLUSION
For the foregoing reasons, we VACATE the judgment of the district court and REMAND the case for further proceedings.
Reference
- Full Case Name
- In RE: WORLD TRADE CENTER LOWER MANHATTAN DISASTER SITE LITIGATION Stanislaw Faltynowicz, Lucyna Foremska, Ruben Acosta, Vladmir Akoulov, Waldemar Balcer, Joaquin Campuzano, Henryk Ciborowski, Jan Dobrowolski, Marek Glowaty, Eugeniusz Jastrzebowski, Zbigniew Kucharski, Maria Moreno, Irena Perzynaska, Marian Retelski, Dariusz Wszolkowski, Boguslaw Zalewski, Plaintiffs-Appellants, State of New York, Intervenor-Appellant, v. Battery Park City Authority, Et Al., Defendants-Appellees. Santiago Alvear, Plaintiff-Appellant, State of New York, Intervenor-Appellant, v. Battery Park City Authority, Defendant-Appellee. Peter Curley, Mary Ann Curley, Plaintiffs-Appellants, State of New York, Intervenor-Appellant, v. Battery Park City Authority, Defendant-Appellee.
- Cited By
- 18 cases
- Status
- Published