Ward, In Matter of

• Decision Date: 31 March 1983
• Citation: 464 N.Y.S.2d 358,119 Misc.2d 930
• Parties: In the Matter of the Application of Richard E. WARD for an Order Cancelling of record certain judgments against him.
• Court: New York Supreme Court

Page 358

464 N.Y.S.2d 358

119 Misc.2d 930

In the Matter of the Application of Richard E. WARD for an Order Cancelling of record certain judgments against him.

Supreme Court, Onondaga County. March 31, 1983.

Sheldon G. Kall, Syracuse, for petitioner. Robert Abrams, Atty. Gen., Dept. of Labor, Albany, for Industrial Commissioner.

DECISION

JOHN R. TENNEY, J.

Petitioner seeks an Order pursuant to § 150 of the Debtor and Creditor Law cancelling a record of judgment in favor of the Industrial Commissioner for unpaid unemployment insurance taxes. Petitioner was adjudicated a bankrupt and duly released from all dischargeable debts on March 16, 1977. The judgment of the Industrial Commissioner had been listed on the schedule of priority creditors. The Commissioner is correct in asserting that unemployment contributions are similar to taxes, W.H.H. Chamberlin, Inc. v. Andrews, 271 N.Y. 1, 2 N.E.2d 22, aff'd. 299 U.S. 515, 57 S.Ct. 122, 81 L.Ed. 380, and they are generally exempt from discharge under Section 17 of the Bankruptcy Act, 11 U.S.C. § 35; see Matter of Parisi, 8 Misc.2d 260, 261, 167 N.Y.S.2d 249. Nevertheless, the Commissioner is estopped from enforcing its lien by § 574 of the Labor Law which prohibits collection "unless civil action or warrant proceedings are begun not later than two years after the date of such discharge, and their total amount is two thousand dollars or more". As the Commissioner's lien is for less than $2,000, petitioner's request for an order cancelling the lien should be granted.