Brunswick Hospital Centre, Inc. v. Hynes

76 A.D.2d 436, 431 N.Y.S.2d 547, 1980 N.Y. App. Div. LEXIS 11771
CourtAppellate Division of the Supreme Court of the State of New York
DecidedAugust 11, 1980
StatusPublished
Cited by2 cases

This text of 76 A.D.2d 436 (Brunswick Hospital Centre, Inc. v. Hynes) 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
Brunswick Hospital Centre, Inc. v. Hynes, 76 A.D.2d 436, 431 N.Y.S.2d 547, 1980 N.Y. App. Div. LEXIS 11771 (N.Y. Ct. App. 1980).

Opinion

OPINION OF THE COURT

Titone, J.

In a proceeding pursuant to CPLR 2304, petitioner, Brunswick Hospital Centre Inc. (Brunswick Hospital), appeals from so much of an order of the County Court, Suffolk County, as denied those portions of its application which sought (1) to quash two subpoenas duces tecum; (2) the return of copies made of books and records which had been turned over to the respondent Special Prosecutor; and (3) to suppress the use of any information or evidence derived from such books and records.

The record reveals that commencing in November, 1977, respondent, the Special Prosecutor in charge of the hospital, nursing home and adult care center investigations, commenced an investigation of the books and records of Brunswick Hospital. Petitioner asserts that it delivered all its books and records to accountants and other investigators in the employ of respondent from November, 1977 through September, 1978, as well as making voluntary disclosure, inter alia, of information concerning suppliers of petitioner hospital.

On or about September 5, 1978, a Grand Jury (Grand Jury III) was convened at the instance of the respondent to conduct an investigation of petitioner’s business affairs. The Grand Jury, on September 28, 1978, issued and had served on petitioner a subpoena duces tecum returnable October 6, 1978, requiring petitioner to produce 12 enumerated categories of its records.

Between the issuance of the subpoena on September 28, 1978 and March 7, 1979, the parties engaged in legal skirmishes, with respect, inter alia, to the validity of such subpoena, and petitioner’s compliance in producing the documents called for under the instrument. On March 7, 1979, [438]*438which was after the testimony of an employee, another Grand Jury subpoena duces tecum, returnable March 30, 1979, was served upon petitioner requesting additional records. A further dispute then occurred between the parties as to petitioner’s assertion that records sought under the March 7 subpoena were not available because of their being mishandled and misplaced by respondent while in possession of his agents and employees in 1977 and 1978. A hearing was scheduled for June 13, 1979 concerning records that petitioner claimed were lost, misplaced or misfiled. Also, on June 4, 1979, County Court Judge Seidell entered an order, of which petitioner claims it was unaware, extending the September, 1978 term of the Grand Jury up to and including June 22, 1979, when the term expired.

Returning to the hearing scheduled for June 13, 1979 with respect to the "lost or misfiled records” of petitioner, on that date, the hearing was adjourned to June 20, 1979. On June 20, 1979 it was further adjourned, this time to June 27, 1979. On the latter date, which was five days after the expiration of the Grand Jury term, petitioner delivered additional items that were demanded under the subpoena of March 7, 1979. According to petitioner, it delivered such additional items that day without knowledge that the Grand Jury term had expired and that respondent accepted them without disclosing such fact to it.

Although the County Court denied petitioner’s application to quash the two subpoenas duces tecum, it did grant that portion which demanded the return of petitioner’s original documents and records. However, it denied those portions which demanded, respectively, the return to petitioner of all copies made of materials which were subpoenaed and delivered to the defunct Grand Jury, including copies of those records delivered after June 27, 1979, and the suppression of information or evidence obtained from such records.

I believe that the County Court correctly denied the branch of petitioner’s application seeking suppression of evidence in view of the fact that a criminal action was pending against petitioner at the time this matter was being litigated (see CPL 1.20, subd 16; 710.20; United States v Calandra, 414 US 338). However, I am of the opinion that the County Court did err in denying without reservation petitioner’s request to have all copies of its records returned to it.

Pursuant to CPL article 610 a prosecutor may issue a [439]*439subpoena duces tecum requiring the individual subpoenaed to produce the items specified therein. In this instance the subpoenas issued were made on a date during the term of the Grand Jury. However, some of the records sought were not turned over to the Special Prosecutor until after the Grand Jury’s term had expired without handing down an indictment against petitioner.

Prior to changes in the law set forth and discussed infra, it was held that authorization given a prosecutor to conduct an inquiry and issue subpoenas, did not include the right to take possession of books and records for examination and audit (Matter of Heisler v Hynes, 42 NY2d 250; Matter of Windsor Park Nursing Home v Hynes, 42 NY2d 243 [both cases decided July 7, 1977]).

As a direct result of the afore-cited two cases the State Legislature, the same year, added to, or amended, various State laws, the intent and effect of which was to overrule expressly the Court of Appeals determination in Heisler and Windsor Park (supra) so as to allow a prosecutor to take procedural steps to impound such records for audit and inspection, or in the alternative, make copies of them for the same purpose.

Two such additions or changes (L 1977, ch 451, §§ 1, 2) involve the modification of CPLR 2305, by adding subdivision (c), and amending the subpoena power of a prosecutor by enacting a new statute (CPL 610.25) which, respectively, provide as follows:

"CPLR 2305 * * *

"(c) Inspection, examination and audit of records. Whenever by statute any department or agency of government, or officer thereof, is authorized to issue a subpoena requiring the production of books, records, documents or papers, the issuing party shall have the right to the possession of such material for a period of time, and on terms and conditions, as may reasonably be required for the inspection, examination or audit of the material. The reasonableness of such possession, time, terms, and conditions shall be determined with consideration for, among other things, (i) the good cause shown by the issuing party, (ii) the rights and needs of the person subpoenaed, and (iii) the feasibility and appropriateness of making copies of the material. The cost of reproduction and transportation incident thereto shall be borne by the person or party [440]*440issuing the subpoena unless the court determines otherwise in the interest of justice.” (Emphasis supplied.)

"CPL 610.25 Securing attendance of witness by subpoena; possession of physical evidence.

"1. Where a subpoena duces tecum is issued on reasonable notice to the person subpoenaed, the court or grand jury shall have the right to possession of the subpoenaed evidence. Such evidence may be retained by the court, grand jury or district attorney on behalf of the grand jury.

"2. The possession shall be for a period of time, and on terms and conditions, as may reasonably be required for the action or proceeding. The reasonableness of such possession, time, terms and conditions shall be determined with consideration for, among other things, (a) the good cause shown by the party issuing the subpoena or in whose behalf the subpoena is issued, (b) the rights and legitimate needs of the person subpoenaed and (c) the feasibility and

Free access — add to your briefcase to read the full text and ask questions with AI

Related

People v. Shariff
165 Misc. 2d 598 (New York County Courts, 1995)
Director v. Commissioner
1988 T.C. Memo. 256 (U.S. Tax Court, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
76 A.D.2d 436, 431 N.Y.S.2d 547, 1980 N.Y. App. Div. LEXIS 11771, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brunswick-hospital-centre-inc-v-hynes-nyappdiv-1980.