Donmez v. Department of Consumer Affairs

44 Misc. 3d 695, 992 N.Y.S.2d 393
CourtNew York Supreme Court
DecidedJune 6, 2014
StatusPublished

This text of 44 Misc. 3d 695 (Donmez v. Department of Consumer Affairs) 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
Donmez v. Department of Consumer Affairs, 44 Misc. 3d 695, 992 N.Y.S.2d 393 (N.Y. Super. Ct. 2014).

Opinion

OPINION OF THE COURT

Peter H. Moulton, J.

Petitioner is a pedicab driver and owner who filed numerous proceedings, pro se, stemming from one incident where he received a violation in connection with his driver’s license (a) for picking up passengers in a restricted area in the Central Park Boathouse parking lot, and (b) for failing to have a copy of his driver information visible to passengers. Petitioner claims that his constitutional rights were violated, including his right to be free from unreasonable search and seizure, when his pedicab was searched by the Department of Parks and Recreation, in the presence of police officers who were called to the scene. Petitioner lost the agency hearing (at which he was represented by counsel), and the hearing officer imposed a total fine of $1,000 which was upheld by the Deputy Director of Adjudication (see decision and order dated Jan. 28, 2013). Petitioner also lost the agency appeal (see decision and order dated June 28, 2013).

At issue here is petitioner’s business license. The court will not address any argument regarding petitioner’s pedicab driver’s license (which was suspended) or the underlying violations. Those arguments were made (or should have been made) in motion sequence Nos. 001 and 003 which were severed and transferred by this court to the Appellate Division, First Department by decision and order, dated February 5, 2014 (Matter of Donmez v Department of Consumer Affairs, 2014 NY Slip Op 31726[U] [Sup Ct, NY County 2014] [the February decision]).

Respondents concede that petitioner submitted a timely application to renew his business license on October 31, 2013.1 However, the Department of Consumer Affairs (the agency) asserts that on that day, it informed petitioner that he had to pay the $1,000 fine in order to renew his business license. By letter dated November 1, 2013, petitioner demanded explanations from the agency and a hearing and defiantly stated that he would “NEVER pay DCA $1,000 ... I will NOT obey” in light of what he considered arbitrary and unconstitutional practices. By letter dated November 6, 2013, Sanford Cohen informed petitioner that

[697]*697“your application to renew License No. 1436620 is denied (a) pursuant to section 20-104 (e) (3) of the Administrative Code of the City of New York and (b) pursuant to section 20-101 of the Code on the ground that you lack the honesty and integrity required of all persons who hold a license issued by the Department” (the Cohen letter).2

Arguments

In motion sequence No. 002, petitioner moved by order to show cause “asking the court to grant a conditional pedicab business license.” In his verified petition, dated November 1, 2013, petitioner contends that respondents violate due process by not “offering hearings for the denials of the renewal of pedicab business licenses.” He asserts that he should not be penalized as a pedicab owner for his failure to pay the $1,000 fine issued to him under his pedicab driver’s license. There is a distinction between a person and property, he argues. By declining to renew his owner’s license for failure to pay fines as a driver, the agency is “telling someone he cannot own a car because he does not have a driver’s license.” Petitioner notes that the agency did not suspend his business license simultaneously with suspension of his driver’s license as a result of his failure to pay the $1,000 fine.

Respondents oppose motion sequence No. 002 on the basis that petitioner failed to demonstrate that he has a property interest in his business license (see respondents’ verified answer ¶ 241; respondents’ mem of law at 24-26).3 Further, petitioner is not entitled to a hearing regarding the agency’s refusal to renew his business license because Administrative Code of the City of New York § 20-104 (e) (3) does not provide for a hearing. Administrative Code § 20-104 (e) (3), respondents argue, should be compared to Administrative Code § 20-261 (a), which specifies that a hearing must be held prior to revoking a business license for instances which are inapplicable (see respondents’ [698]*698mem of law at 24). Additionally, petitioner is not entitled to renewal of his business license because he lacks “honesty and integrity” given his defiant statements that he would not pay the $1,000 fine (discussed below).

In motion sequence No. 004, petitioner seeks an order granting “the restoration of petitioner’s . . . pedicab business license . . . upon the payment of $1,000; the amount imposed by DCA with its June 28, 2013 final determination.” He attaches a check made out to the agency for $1,000 from a third party.4 In his affidavit in support, he states that the license is a “crucial source of income for himself and his family.” He further highlights that he does not pose a threat to the public and has a near perfect record.

Respondents oppose motion sequence No. 004 on the basis that petitioner’s request is not ripe for review because petitioner has not received a final agency determination, because he has not paid the $1,000 fine.5 They contend “once he does, DCA will then arrive at a definitive position, entirely within its lawful discretion, to restore or renew.” Respondents further contend that petitioner has not shown a clear legal right to the relief sought, and, has not met the standards for a preliminary injunction.

Discussion

Motion sequence Nos. 002 and 004 are consolidated for disposition. Petitioner’s application is ripe for judicial review. It is incorrect for the agency to claim that petitioner has not received a final determination in light of the Cohen letter concluding that “your application to renew License No. 1436620 is denied.” Further, even if this were not the case, the agency has cited regulations which indicate that petitioner’s application would be treated as a new application because it would be made outside of the 59-day grace period.6 Thus, even assuming the agency would permit renewal of the business license, the renewal would [699]*699not be on the same terms and conditions as if it was granted prior to the expiration of the grace period. Thus, the court will reach the question of whether it was arbitrary and capricious or in violation of law for the agency to decline to renew his business license for the reasons cited in the Cohen letter.

For the reasons discussed below, the agency’s demand for payment of the $1,000 fíne, as a condition of the business license renewal, was in excess of its authority (see Matter of While You Wait Photo Corp. v Department of Consumer Affairs of City of N.Y., 87 AD2d 46, 52 [1st Dept 1982] [respondents’ demand for “proof of liability insurance as a condition of the license renewal, in the absence of a statute imposing such a requirement, was unwarranted . . . The Department of Consumer Affairs relies on sections ... of the Administrative Code, but none of these provisions can be interpreted as providing support for the agency’s position. In effect, respondents are exercising a legislative function, and this they are not permitted to do”]). The plain language of a legislative enactment, discussed below, does not support such a unilateral ruling and must be annulled (see Matter of New York City Pedicab Owners’ Assn., Inc. v New York City Dept. of Consumer Affairs,

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Related

New York City Pedicab Owners' Ass'n v. New York City Department of Consumer Affairs
61 A.D.3d 558 (Appellate Division of the Supreme Court of New York, 2009)
While You Wait Photo Corp. v. Department of Consumer Affairs
87 A.D.2d 46 (Appellate Division of the Supreme Court of New York, 1982)
Dolinsky v. Department of Consumer Affairs
125 A.D.2d 256 (Appellate Division of the Supreme Court of New York, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
44 Misc. 3d 695, 992 N.Y.S.2d 393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donmez-v-department-of-consumer-affairs-nysupct-2014.