City of N.Y. v. Contract Dispute Resolution Bd. of N.Y.

• Decision Date: 31 October 2013
• Citation: 110 A.D.3d 647,2013 N.Y. Slip Op. 07131,974 N.Y.S.2d 65
• Parties: In re CITY OF NEW YORK, et al., Petitioners–Respondents, v. CONTRACT DISPUTE RESOLUTION BOARD OF the CITY OF NEW YORK, Respondent–Respondent, New York Health Care, Inc., Respondent–Appellant. In re New York Health Care, Inc., Petitioner–Appellant, v. New York City Human Resources Administration Home Care Services Program, et al., Respondents–Respondents.
• Court: New York Supreme Court — Appellate Division

110 A.D.3d 647

974 N.Y.S.2d 65

2013 N.Y. Slip Op. 07131

In re CITY OF NEW YORK, et al., Petitioners–Respondents,

v.CONTRACT DISPUTE RESOLUTION BOARD OF the CITY OF NEW YORK, Respondent–Respondent,New York Health Care, Inc., Respondent–Appellant.

In re New York Health Care, Inc., Petitioner–Appellant,

v.New York City Human Resources Administration Home Care Services Program, et al., Respondents–Respondents.

Supreme Court, Appellate Division, First Department, New York.

Oct. 31, 2013.

Wachtel Masyr & Missry LLP, New York (Sara Spiegelman of counsel), for appellant.

Michael A. Cardozo, Corporation Counsel, New York (Janet L. Zaleon of counsel), for City of New York and New York City Human Resources Administration/Department of Social Services, respondents.

Peggy Kuo, New York, for Contract Dispute Resolution Board of the City of New York, respondent.

MAZZARELLI, J.P., RENWICK, DeGRASSE, GISCHE, JJ.

Order and judgment (one paper), Supreme Court, New York County (Paul G. Feinman, J.), entered March 6, 2012, which, insofar as appealed from as limited by the briefs, granted in part an article 78 petition filed by the City of New York and New York City Human Resources Administration/ Department of Social Services (collectively, HRA), to the extent of remanding the matter to the Contract Dispute Resolution Board (CDRB) for a complete determination regarding HRA's authority to recoup unspent funds received by appellant pursuant to the Health Care Reform Act (HCRA), and denied a separate article 78 petition filed by appellant seeking, inter alia, to compel CDRB and the Office of the Comptroller of the City of New York (Comptroller) to review HRA's authority to recoup non-HCRA funds unspent by appellant, unanimously affirmed, without costs.

The court properly remanded the matter to CDRB to make a complete and final determination regarding HRA's authority to recoup unspent HCRA funds, on the ground that CDRB's failure to address whether there is any statutory basis for such authority rendered its determination arbitrary and capricious. The remand to review this statutory issue was appropriate notwithstanding that the court found no error in the aspect of CDRB's determination concluding that HRA has no contractual basis to recoup HCRA funds ( see Society of N.Y. Hosp. v. Axelrod, 163 A.D.2d 142, 557 N.Y.S.2d 363 [1st Dept.1990] ).

The court properly declined to compel the Comptroller to review appellant's claims regarding non-HCRA funds, since the...