Attoma v. State Department of Social Welfare

26 A.D.2d 12, 270 N.Y.S.2d 167, 1966 N.Y. App. Div. LEXIS 4185
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 19, 1966
StatusPublished
Cited by5 cases

This text of 26 A.D.2d 12 (Attoma v. State Department of Social Welfare) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Attoma v. State Department of Social Welfare, 26 A.D.2d 12, 270 N.Y.S.2d 167, 1966 N.Y. App. Div. LEXIS 4185 (N.Y. Ct. App. 1966).

Opinion

Bastow, J. P.

The judgment before us for review mandates the appellants (State Department of Social Welfare and individual defendants constituting the State Board of Social Welfare) to process and pass upon the application of petitioners to operate a private proprietary nursing home in accordance with the applicable provisions of the Social Welfare Law and the rules and regulations of the appellants, Department and Board, as they existed prior to October 1, 1964.

For nearly a decade persons proposing to operate a private proprietary nursing home have been required by statute to obtain the written approval of the State Department of Social Welfare (Department). (L. 1956, ch. 589, as amd.) The Buies of the State Board of Social Welfare (Board) provided prior to October 1, 1964 that no building to be used for such purpose could be constructed except on plans and designs approved in writing by the Department (18 NYCRR 27.13). The Begulations of the Department further provided that the owners of such a home should be of good reputation and should have sufficient finances to assure compliance with the Buies of the Board and the Begulations of the Department (18 NYCRR 476.2).

In 1964 the so-called Metcalf-McCloskey Bill was enacted and became effective on October 1, 1964 (L. 1964, ch. 730). This legislation amended certain sections of the Public Health and Social Welfare Laws and made additions thereto. There was created within the State Department of Health a State Hospital Beview and Planning Council comprised of 31 persons to be appointed by the G-overnor. Upon this body and local hospital review and planning councils was placed the responsibility of making recommendations to the Board as to the need, among other thing’s, for the construction of new hospitals and nursing homes. The Department was mandated (L. 1964, ch. 730, § 5) not to approve the establishment of a private proprietary nursing home unless it was satisfied, among other things, as to “ the public need for the existence of the home at the time and place and under the circumstances proposed ”.

The petitioners proposed to operate a proprietary nursing home as copartners doing business as Nortonian Nursing Home. An intelligent understanding of events requires a brief recital [15]*15of their plans. Hamill, one of the petitioners, was president of Boston Agency, Inc. (Boston) which owned the land upon which the nursing home was to be constructed. It was proposed to organize a corporation (Northside Intermediate Care Center, Inc.) and this de facto corporation (Northside) had entered into an option to lease the land from Boston. Northside in turn proposed to erect a building at a cost of $500,000 and to enter into a lease with petitioners as copartners of the land and building for a term of 20 years at a base annual rental of $10,400 plus all payments of principal and interest to be made by Northside upon any mortgage obtained by it for the purpose of financing the construction of the building.

On June 26,1964 an attorney for petitioners conferred with a representative of the Rochester office of the Department. He was told that under the existing statute, rules and regulations (until October 1, 1964, the effective date of the new law) it would be necessary to submit (1) an application for construction with proposed plans and specifications; (2) an application (Form WI-121) for each individual participating in the project and (3) certain completed legal documents including certificate of incorporation of Northside, partnership agreement of petitioners, certificate of petitioners of doing business under an assumed name, lease between Boston (the landowner) and Northside and lease between Northside and the partnership.

In evaluating what took place thereafter it is apparent that all parties knew that time was of the essence if the project was to be approved by appellants during the ensuing three months before the new law became effective on October 1, 1964. On August 13 the construction application and construction plans were submitted to the Rochester office of the Department and promptly forwarded to the Albany office. Three days later the employee of the Department, who had first conferred with the attorney, telephoned him and urged submission of the other papers “ as quickly as possible to complete total application.” On August 20 the attorney presented the applications of the seven proposed partners. When inquiry was made about the additional documents (partnership agreement, leases, etc.) the attorney stated that " they would be furnished as soon as possible.”

On the same date (August 20) the construction plans were returned to petitioners’ attorney with a letter setting forth required changes therein. Significantly, in the light of petitioners’ present contentions, the memorandum from the Department’s Chief Architect to the Rochester office stated that “ This interim review has been made out of sequence as a cooperation [16]*16measure to the applicant. No further ' out of sequence ’ reviews can be made due to the pressure created by the October 1, deadline.”

On August 28 petitioners’ attorney and one Handler, their architect, conferred in Albany with Mr. Mettauer, the Department’s Chief Architect, about the requested changes in the construction plans. Upon the trial Handler admitted that it was implied at the conference that the prompt review of the plans was as a favor to petitioners. The attorney (according to his testimony) was told by Mettauer that if the necessary changes were made “ he (Mettauer) could see no reason why [the plans] wouldn’t be approved.”

On September 14 the Department’s investigation of petitioners was completed and this portion of the application was ready for approval. It was not, however, until Friday, September 25, that the corrected plans were submitted to the Department’s Rochester office. They were received in the Albany office the following Monday—two days before the new law became effective. The other documents were never submitted and there was no proof at the trial that any affirmative action had been taken either before or after October 1, 1964 to incorporate Northside, to execute either of the leases, the partnership agreement or the certificate of doing business under an assumed name.

It is the contention of appellants, however, and so the trial court in substance found, that the certificate of incorporation of Northside, the leases and other papers were not executed because of a telephone conversation the attorney had with an employee of the Department’s Rochester office on September 4,1964.

It appears that on July 28, 1964 the Board had adopted a resolution pertaining to the processing of applications under the old and new laws. A “ whereas ” clause therein recited that “ on the basis of past experience ” applications “ could not be processed in regular order prior to October 1, 1964 unless received by the Department by July 31, 1964.” The resolution stated " that the Department be authorized to the extent feasible, to process applications filed with it on and after August 1,1964 ’ ’ in accordance with the new law. (Emphasis added.)

On September 4, as stated, the attorney had a telephone conversation with an employee of the Department. The latter made a memorandum of the conversation which was received as an exhibit at the trial. The resolution of June 28 had come to her attention and she told the attorney about it. She further informed him that “we couldn’t give them assurance [17]*17it would be approved at all, but we would continue to process the application.”

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Bluebook (online)
26 A.D.2d 12, 270 N.Y.S.2d 167, 1966 N.Y. App. Div. LEXIS 4185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attoma-v-state-department-of-social-welfare-nyappdiv-1966.