Brennan v. Regan

145 Misc. 2d 889, 548 N.Y.S.2d 848
CourtNew York Supreme Court
DecidedNovember 13, 1989
StatusPublished
Cited by2 cases

This text of 145 Misc. 2d 889 (Brennan v. Regan) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brennan v. Regan, 145 Misc. 2d 889, 548 N.Y.S.2d 848 (N.Y. Super. Ct. 1989).

Opinion

[890]*890OPINION OF THE COURT

Joseph Harris, J.

Plaintiff was originally elected a Supreme Court Justice on November 4, 1969 for a term running from January 1, 1970 to December 31, 1983. In November 1983 he won reelection to a new 14-year term for the same office. In December 1983, after reelection, he retired from his previous term as Supreme Court Justice, effective December 30, 1983; his new term as Supreme Court Justice commenced January 1, 1984. Thereafter and until August 1, 1985, he received both his retirement benefits accrued prior to the commencement of his new term and his salary as a continuing Supreme Court Justice.

Plaintiff contended that on January 1, 1984, pursuant to section 150 of the Civil Service Law, he was legally permitted to receive both his retirement benefits and his salary as a reelected Supreme Court Justice for the term commencing subsequent to his retirement. At that time Civil Service Law § 150 required, with certain stated exceptions, that if, subsequent to his retirement, a public retiree shall accept any public office, position or employment, any pension or annuity awarded or allotted to him upon retirement shall be suspended during such service or employment and while such person is receiving any salary or emolument therefor. One of the stated exceptions was where the public retiree, subsequent to his retirement, entered upon an "elective public office”.

This practice, known as "double-dipping”, was not unique to this plaintiff. In order unequivocally to put a stop to this practice, effective May 15, 1984, the State Legislature amended the aforesaid section 150 of the Civil Service Law by adding the following sentence: "Notwithstanding the foregoing, if any person, subsequent to his retirement from an elective public office, accepts appointment, is re-elected or takes a new oath of office to the same elective public office from which he retired, his retirement allowance shall be suspended until the date he vacates such elective public office”.

Thereafter, plaintiff, together with six other petitioners similarly situated, all sitting Judges of the Unified Court System of the State of New York, commenced a CPLR article 78 proceeding in New York Supreme Court, Albany County, challenging the constitutionality of the aforesaid amendment to section 150 of the New York Civil Service Law contained in Laws of 1984 (ch 117), contending that under the specific [891]*891circumstances involved, the amendment violated article V, § 7 of the NY Constitution, which states: "After July first, nineteen hundred forty, membership in any pension or retirement system of the state or of a civil division thereof shall be a contractual relationship, the benefits of which shall not be diminished or impaired.”

Initially successful at Special Term, the judgment entered in favor of petitioners was reversed by the Appellate Division, Third Department (Matter of Baker v Regan, 114 AD2d 187 [1986]). The order of the Appellate Division, insofar as the plaintiff herein is concerned, was affirmed by the New York Court of Appeals (Matter of Baker v Regan, 68 NY2d 335 [1986]).

In its Per Curiam opinion in Matter of Baker v Regan (supra), dated November 18, 1986, the Court of Appeals held that, under the specific circumstances, the appellant Judges, including petitioner herein, had no statutory or contractual entitlement to the retirement benefits of their judicial office while they continued in their same office in a reelected status, and that suspension of those benefits by the Comptroller did not contravene NY Constitution, article V, § 7.

Plaintiff was paid, and received, retirement benefits for the period covering December 31, 1983 through July 31, 1985, when said benefits were terminated. During that same time period plaintiff also received a salary for his services as a second term State Supreme Court Justice.

On July 25, 1985, the Court of Appeals was notified of an unrelated Federal indictment against plaintiff. On September 10, 1985, the Court of Appeals suspended plaintiff from his judicial duties without pay. On December 14, 1985, he resigned from his second term as a Supreme Court Justice. Because he was no longer receiving a salary for said public office, his retirement benefits were resumed.

On January 16, 1987, plaintiff received a letter from the Office of the Comptroller of the State of New York claiming that the New York State Employees’ Retirement System was entitled to recover from plaintiff retirement benefits erroneously paid to him while he was also collecting his salary as a Supreme Court Justice during the period from December 30, 1983, when he retired from his first term as a Supreme Court Justice, to July 31, 1985, the day retirement benefits to plaintiff were suspended by defendants. The State Comptroller advised plaintiff that he had been overpaid $77,577 and that [892]*892interest on said sum in the amount of $15,709.37 had to be added, for a total overpayment of $93,286.37. Repayment of said sum was duly demanded.

Plaintiff replied that in his opinion the Court of Appeals decision of November 18, 1986 in Matter of Brennan v Regan (68 NY2d 335) applied prospectively only from May 15, 1984, the date of the amendment to section 150 of the Civil Service Law, and that repayment of pension benefits erroneously paid by the State after May 15, 1984 ought to be without interest. This interpretation was rejected by the State Comptroller and after unsuccessful attempts between the parties to settle the matter, on June 1, 1987 the plaintiff’s retirement benefits were suspended by the State Comptroller in order to recoup from plaintiff the claimed overpayments with interest. Suspension was in full until August 31, 1987, recouping thereby the sum of $12,302.70, and thereafter monthly at the rate of $664.50. Said rate of recoupment is based on the plaintiff’s actuarial life expectancy.

On September 26, 1988, plaintiff commenced the instant action for a declaratory judgment, seeking the following relief: a declaratory judgment that defendants are not entitled to recoup any moneys from plaintiff’s monthly pension benefits; a permanent injunction enjoining defendants from deducting any money from plaintiff’s pension benefits; a declaratory judgment that recoupment of pension benefits previously paid to him under section 150 of the Civil Service Law violates plaintiff’s rights to due process and the equal protection of the laws under the Constitutions both of the United States and the State of New York; an order compelling return of moneys heretofore deducted from his pension benefits as and for recoupment; and judgment in the sum of $40,000 with interest, being alleged overpayment of taxes by plaintiff as a result of negligence of the defendants in erroneously paying him retirement benefits under section 150 of the Civil Service Law while he was simultaneously receiving his salary as a reelected Supreme Court Justice.

(The court determined that a declaratory judgment action is appropriate, against the contention by respondent that only a CPLR article 78 proceeding is a proper procedural vehicle herein. For purposes of conservation of space, discussion of this issue is omitted.)

Respecting the merits herein, as to those causes of action over which the court has jurisdiction, there are no issues of [893]*893fact requiring resolution.

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Bluebook (online)
145 Misc. 2d 889, 548 N.Y.S.2d 848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brennan-v-regan-nysupct-1989.