Heimbach v. Metropolitan Transportation Authority

553 N.E.2d 242, 75 N.Y.2d 387, 553 N.Y.S.2d 653, 1990 N.Y. LEXIS 628
CourtNew York Court of Appeals
DecidedMarch 27, 1990
StatusPublished
Cited by41 cases

This text of 553 N.E.2d 242 (Heimbach v. Metropolitan Transportation Authority) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heimbach v. Metropolitan Transportation Authority, 553 N.E.2d 242, 75 N.Y.2d 387, 553 N.Y.S.2d 653, 1990 N.Y. LEXIS 628 (N.Y. 1990).

Opinion

[389]*389OPINION OF THE COURT

Bellacosa, J.

This appeal addresses the effort of the Metropolitan Transportation Authority (MTA) to shift to Orange County the cost of MTA’s $369,733 settlement of a negligence action brought by a commuter who was seriously injured in a slip and fall on an icy platform at the Goshen Metro North station. MTA relied on Public Authorities Law § 1277 to certify a "total cost” of $568,975 for the operation, maintenance and use of the seven Metro North (an MTA subsidiary) passenger stations in Orange County for the fiscal year ending March 1986. Sixty-five percent of the total was attributable to the Goshen station for the one-time negligence settlement of the action arising out of the 1982 accident and underlying this offshoot litigation. MTA billed Orange County $47,671 for snow and ice removal for the fiscal year at issue; $8,350 for the station where the accident occurred. Officials of Orange County first learned of the settlement when they received the MTA bill charging the county for the ultimate payment.

The lean legal question is whether the MTA settlement cost is part of the statutorily reimbursable "total cost * * * of operation, maintenance and use”. We hold it is not.

Public Authorities Law § 1277 pertinently provides: "The total cost to the authority and each of its subsidiary corporations of operation, maintenance and use of each passenger station within the district serviced by one or more railroad facilities of the authority or of such subsidiary corporation, including the buildings, appurtenances, platforms, lands and approaches incidental or adjacent thereto, shall be borne by the city of New York if such station is located in such city or, if not located in such city, by such county within the district in which such station is located.” This statute allows MTA to determine annually the "total cost” and to certify the amount for payment to the appropriate municipal government. If unpaid, the MTA may intercept unrelated State aid to counties by certification that the State Comptroller withhold the due sums.

In this case, Orange County objected to the inclusion of the settlement in the "total cost” calculation. MTA rejected the objection and exercised its enforcement and collection author[390]*390ity, directing the Comptroller to withhold and pay over to MTA $568,975 from Orange County’s next State aid allotment. The county brought this article 78 proceeding challenging as arbitrary and capricious the MTA’s inclusion of the settlement cost. Supreme Court dismissed the county’s petition and the Appellate Division affirmed, without opinion. We granted leave to appeal and reverse.

Petitioner Orange County concedes its statutory fiscal responsibility for the "total cost * * * of operating], maintaining] and us[ing]” the MTA passenger stations within its borders. It protests the proposition that the Legislature, in enacting the "total cost” pass-through of Public Authorities Law § 1277, intended to include also the amounts for settlement of personal injury suits arising out of negligent operation, maintenance or use of a station.

This case turns solely on statutory interpretation. Since "specialized knowledge is not necessarily implicated,” the lower courts erroneously deferred to MTA’s interpretation of this statute as their rationale for dismissing the county’s article 78 proceeding (Matter of Industrial Liaison Comm. v Williams, 72 NY2d 137, 144; Kurcsics v Merchants Mut. Ins. Co., 49 NY2d 451, 459).

The Legislature did not precisely define the "total cost” phrase of Public Authorities Law § 1277. Indeed, the term is not susceptible to precise definition, "[r]ather it [is] a responsible political determination as to the fair apportionment of the economic burden of the costs of mass transportation.” (Metropolitan Transp. Auth. v City of New York, 39 NY2d 953, 954, affg 47 AD2d 10.)

In construing the "total cost” language, we must reflect that a totality is not necessarily all encompassing. Words of limitation follow the phrase in this statute which, by their plain meaning and unambiguous usage (see, Matter of State of New York [Abrams] v Ford Motor Co., 74 NY2d 495, 500 [and cases cited]), show that only the "total cost * * * of operation, maintenance and use” (emphasis added) of the station is certifiable. To allow "total cost” to be operative as if in some vacuum alone, without considering the intended meaning of these words of limitation, is illogical and unreasonable. Otherwise, the words of limitation, referable to an actuarially predictable cost framework based on previous years’ cost of operation, maintenance and use and based on comparable station operations, would be lost. Worse still, exposure to [391]*391negligence awards and unilateral settlements of lawsuits, which are notoriously open-ended, would preclude prudent planning by municipalities in their budgetary and tax obligations. Adopting the MTA’s position in this case therefore results in an overreach and a distortion of the "fair” political distribution of fiscal burden. We cannot attribute to the Legislature a reallocation of this magnitude by implication or by afterthought.

Still, we acknowledge that the salaries of "employees whose work is in connection with the use of the stations by passengers” and expenditures for cleaning tracks wholly within a station are clearly within the statutory "total cost” (Metropolitan Transp. Auth. v City of New York, 32 AD2d 197, 199-200, mod on other grounds 26 NY2d 817). Also, revenues derived by MTA from its stations by way of concession fees, real estate income and contributions from out-of-State transportation authorities may not be deducted from MTA’s "total cost” of operating, maintaining and using its passenger stations (Metropolitan Transp. Auth. v City of New York, 39 NY2d, supra, at 954). On the other hand, expenses — very large ones — can arise at rail stations without being attributable to the station’s operation, maintenance or use (see, Matter of Pattison v Metropolitan Transp. Auth., 133 Misc 2d 592, 605, affd 143 AD2d 191, lv denied 73 NY2d 703 [cost of settling wrongful death claim resulting from negligent railroad, as contrasted to station, operation not certifiable under Public Authorities Law § 1277]).

Undaunted, MTA asserts that because section 1277 states the station costs "shall” be borne by the county in which the station is located, MTA has no choice but to bill a county for what MTA determines to be "total” costs, even if those costs are significantly increased by unforeseen events such as harsh weather or labor unrest. Assuming the latter examples are correct, they have no relevancy to the inclusion of settlements of negligence actions in "total cost” certifications. Here, we are dealing not with an unforeseeable event, but with an expenditure necessitated by an alleged act of negligence, the essence of which is foreseeability (Palsgraf v Long Is. R. R. Co., 248 NY 339, 344).

To transfer the fiscal burden of negligence settlements would add a significant unarticulated dimension to Public Authorities Law § 1277 — that of an indemnification nature. There is no legislative history or evidence that the Legislature [392]*392understood or wished to confer such an additional benefit on the MTA at the expense of helpless local municipalities and their taxpayers.

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

Related

CVS Pharmacy, Inc. v. Press Am., Inc.
377 F. Supp. 3d 359 (S.D. Illinois, 2019)
In re Bridge Construction Services of Florida, Inc.
140 F. Supp. 3d 324 (S.D. New York, 2015)
Mantovani v. Whiting-Turner Contracting Co.
55 A.D.3d 799 (Appellate Division of the Supreme Court of New York, 2008)
Dietz v. Compass Property Management Corp.
17 A.D.3d 1119 (Appellate Division of the Supreme Court of New York, 2005)
Viacom Inc. v. Philips Electronics North America Corp.
16 A.D.3d 215 (Appellate Division of the Supreme Court of New York, 2005)
Lanoce v. Kempton
8 A.D.3d 449 (Appellate Division of the Supreme Court of New York, 2004)
Post v. Belmont Country Club, Inc.
805 N.E.2d 63 (Massachusetts Appeals Court, 2004)
Manley v. Ambase Corporation
337 F.3d 237 (Second Circuit, 2003)
Manley v. Ambase Corp.
337 F.3d 237 (Second Circuit, 2003)
Breeden v. Ades Investor Group
60 F. App'x 863 (Second Circuit, 2003)
Williams v. JP Morgan & Co. Inc.
248 F. Supp. 2d 320 (S.D. New York, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
553 N.E.2d 242, 75 N.Y.2d 387, 553 N.Y.S.2d 653, 1990 N.Y. LEXIS 628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heimbach-v-metropolitan-transportation-authority-ny-1990.