Commissioner of Labor v. Hinman

• Decision Date: 05 July 1984
• Citation: 103 A.D.2d 886,478 N.Y.S.2d 116
• Parties: COMMISSIONER OF LABOR of the State of New York, Appellant, v. Barbara J. HINMAN, Respondent.
• Court: New York Supreme Court — Appellate Division

Page 116

478 N.Y.S.2d 116

103 A.D.2d 886

COMMISSIONER OF LABOR of the State of New York, Appellant, v. Barbara J. HINMAN, Respondent.

Supreme Court, Appellate Division Third Department.

July 5, 1984.

Robert Abrams, Atty. Gen. (Reed Brody, Asst. Atty. Gen., of counsel), for appellant.

O'Hara, Felice & Crough, Syracuse (Kenneth A. Windstein, Syracuse, of counsel), for respondent.

Before MAHONEY, P.J., and KANE, CASEY, WEISS and MIKOLL, JJ.

MEMORANDUM DECISION.

Appeal from an order of the Supreme Court at Special Term, entered July 5, 1983 in Madison County, which denied plaintiff's motion to hold defendant in contempt of court for failing to comply with a subpoena and granted defendant's cross motion to vacate a judgment entered against her.

In 1980, defendant began manufacturing electronic components in her home and employing three other women to perform part of the work in their homes. On September 21, 1981, in response to her request for an application for an industrial homework permit, defendant was told that only employers who held such permits in 1945 could qualify. Following an investigation and a compliance conference, plaintiff issued an order on December 4, 1981 finding that defendant had violated section 352 (subd. 1) of the Labor Law by employing persons to work at their homes without an industrial homework permit and assessing a civil penalty in the sum of $2,400 pursuant to section 361-b (subd. 1) of said law. The order further provided for entry as a judgment with the appropriate County Clerk if not paid within 30 days, and also contained notice of her right to appeal to the Industrial Board of Appeals within 30 days. Defendant's petition for review was late by one day and plaintiff's motion to dismiss the appeal as untimely was granted. A judgment was entered in Madison County against defendant for $2,400 on April 26, 1982 (see Labor Law, § 361-b, subd. 3). When defendant failed to respond to a subpoena to take her deposition in proceedings to enforce the judgment, plaintiff moved for an order holding her in contempt. Defendant cross-moved to vacate the judgment on constitutional grounds. Special Term denied plaintiff's motion and granted defendant's cross motion, holding that defendant had been deprived of her due process rights. Plaintiff has appealed.

Plaintiff contends that the relief sought in defendant's cross motion is precluded by her failure to exhaust the appropriate administrative remedies. The exhaustion rule, however, is not inflexible; rather, it is subject to important qualifications, such as when an agency's action is challenged as either unconstitutional or wholly beyond its grant of power, or when its pursuit could cause irreparable injury (Watergate II Apts. v. Buffalo Sewer Auth., 46 N.Y.2d 52, 57-58, 412 N.Y.S.2d 821, 385 N.E.2d 560). The cross motion seeking vacatur of the judgment was, therefore, proper. Similarly, plaintiff incorrectly contends that the judgment may not be collaterally attacked. Notwithstanding the rule against collateral attack, an administrative determination may be subject to such attack where it is absolutely void as for want of jurisdiction. Since the jurisdiction of an administrative body or agency is limited by the powers granted by statute, any determination made without statutory power or in excess of such power is void and subject to collateral attack (Matter of Foy v. Schechter, 1 N.Y.2d 604, 612, 154 N.Y.S.2d 927, 136 N.E.2d 883; see, also, United States v. Solon, 294 F.Supp. 880, affd. 405 F.2d 1211). We recognize the general rule that relief from a judgment may only be sought from the court which rendered the judgment (CPLR 5015; Wood, P.C. v. Ford, 78 A.D.2d 585, 432 N.Y.S.2d 572). However, since the instant judgment was not obtained in the traditional method of a lawsuit or under conditions anticipated under CPLR 5015, it cannot be said that CPLR 5015 was intended to preclude relief from Supreme Court (Commissioner of Labor of State of N.Y. v. Eagle Comtronics, 120 Misc.2d 58, 465 N.Y.S.2d 411).

These technicalities aside, Special Term erroneously exercised its authority in vacating the judgment on the premise that defendant's due process rights had been violated due to the failure to provide her with the opportunity for a meaningful hearing. Due process rights do require such a hearing before a person may be divested of a life, liberty...