Montecalvo v. Herbowy

171 Misc. 2d 921, 656 N.Y.S.2d 176, 1997 N.Y. Misc. LEXIS 89
CourtNew York Supreme Court
DecidedMarch 20, 1997
StatusPublished

This text of 171 Misc. 2d 921 (Montecalvo v. Herbowy) 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
Montecalvo v. Herbowy, 171 Misc. 2d 921, 656 N.Y.S.2d 176, 1997 N.Y. Misc. LEXIS 89 (N.Y. Super. Ct. 1997).

Opinion

[922]*922OPINION OF THE COURT

John T. Buckley, J.

There are two pending motions before this court in this action. Since the disposition of defendants’ motion for summary judgment may render consideration of plaintiffs’ motion for an extension of time to conduct additional disclosure unnecessary, the court will first decide whether defendants are entitled to an order dismissing plaintiffs’ causes of action.

CPLR 3212 authorizes this court to grant summary judgment in favor of the moving party if it is satisfactorily demonstrated that there are no disputed issues of material fact which would preclude awarding the movant the relief for which a prima facie claim has been made. Although as a method of accelerated judgment, such a technique deprives the opponent of trial, the Court of Appeals has underscored the need for judicial economy and the rights of other litigants since "when there is no genuine issue to be resolved at trial, the case should be summarily decided, and an unfounded reluctance to employ the remedy will only serve to swell the Trial Calendar and thus deny to other litigants the right to have their claims promptly adjudicated.” (Andre v Pomeroy, 35 NY2d 361, 364 [1974].)

Summary judgment is the "procedural equivalent of a trial” (Falk v Goodman, 7 NY2d 87, 91 [1959]), and, as such, summary judgment is a " 'drastic remedy’ ” and should not be granted where there is any doubt as to the existence of a triable and "bona fide” issue of fact. (Rotuba Extruders v Ceppos, 46 NY2d 223, 231 [1978].) When movant has made a prima facie showing which demonstrates that summary judgment is warranted, it is then incumbent upon the opposing party to show by evidentiary facts that a claim is real and can be established at trial. (Zuckerman v City of New York, 49 NY2d 557, 562-563 [1980]; Indig v Finkelstein, 23 NY2d 728 [1968].) "The purpose of the motion is to sift out evidentiary facts and determine from them whether an issue of fact exists. As such, the testimony of the nonmoving party appellant must be accepted as true and a decision on the motion must be made on the version of the facts most favorable to her.” (Strychalski v Mekus, 54 AD2d 1068, 1069 [4th Dept 1976].)

This court is not supposed to determine any facts at this stage of litigation but rather ascertain that there exist material disputes of fact. This court is to find issues not facts. Conversely, while there may well be disputed facts, they must [923]*923be relevant to elements of a cognizable cause of action. The existence of disputed facts alone does not entitle the opposing party to a denial of the motion.

The moving party on a summary judgment motion has the burden of demonstrating a prima facie entitlement to such relief as a matter of law, providing sufficient evidence in an admissible form to eliminate any material issues of fact. (Wine-grad v New York Univ. Med. Ctr., 64 NY2d 851 [1985]; Zuckerman v City of New York, 49 NY2d 557, supra; Jordan v Musinger, 197 AD2d 889 [4th Dept 1993].) Of course, if there is simply no cause of action based upon the factual allegations in plaintiffs’ complaint, even when viewing the case most favorably to the nonmoving party, dismissal should be granted.

Plaintiffs are three individual taxpayers of the Utica City School District. While defendants characterize plaintiffs as "merely nominal taxpayers”, there has been no proof that plaintiffs lack standing as taxpayers within the district. There has been no certification of plaintiffs as representing a class of similarly situated taxpayers. Defendants are sued for damages individually and in official capacities. Defendants are the Superintendent of the Utica City School District, specific members of the Utica City School District Board of Education, and the Board of Education of the district. Plaintiffs’ August 1993 complaint states five causes of action seeking monetary damages in a specific amount exceeding $2 million. The first cause of action is based upon a "fraudulent” misrepresentation which caused a Board of Education majority to authorize certain teacher salary increases. The second cause of action is against Superintendent Herbowy for his negligence in failing to uncover unintended teacher salary increases. The third cause of action is against defendant Steinback for a breach of his contract with the school district in negotiating a teacher contract which provided for teacher salary increases of more than 5.5%. The fourth cause of action is against individual board members and the Board of Education which voted for teacher salary increases because they failed to use reasonable care and due diligence. The fifth cause of action is against individual hoard members and the Board of Education for breach of a fiduciary relationship. As a general background for their varied causes of action, these district taxpayers allege that certain defendants recommended approval of an agreement with the Utica Teacher’s Association which in fact provided teachers with salary increases in excess of 4.8% annual increases ostensibly authorized in the agreement. The recom[924]*924mendations, assurances, advice and information provided by some defendants and relied upon by other defendants and undiscovered by the Board defendants are alleged to have been based upon false information and "fraud”.

It is important to note what this case does not involve. Plaintiffs have not made specific factual allegations of "fraud” and there are no allegations that any of those named individually and in official capacities personally profited. "Where a cause of action or defense is based upon misrepresentation, fraud, mistake, wilful default, breach of trust or undue influence, the circumstances constituting the wrong shall be stated in detail.” (CPLR 3016 [b].) Plaintiffs elected to forego any remedies they may have had under CPLR article 78 or article 30 and are not relying upon any specific constitutional, statutory or regulatory requirements or prohibitions. So, for example, plaintiffs have not identified State funds which are being misspent nor are they seeking to litigate a "gift of public funds” cause of action provided by the New York State Constitution and enforceable through General Municipal Law § 51. (Matter of Rampello v East Irondequoit Cent. School Dist., — AD2d —, 1997 NY Slip Op 01087 [4th Dept. Feb. 7, 1997]; Matter of Schulz v State of New York, 217 AD2d 393 [3d Dept 1995].) This case does not involve causes of action under New York State Constitution, article VIII, § 1 nor State Finance Law § 123-b. Plaintiffs have not alleged any violations of any State statutes including the Education Law or any regulations promulgated thereunder. Plaintiffs, dissimilar to many taxpayer plaintiffs, seek damage relief based upon negligence and fraud. Plaintiffs have not complied with notice of claim requirements.

The only apparent authorization for their standing to litigate as taxpayers seeking damage relief arises under a very specific statute with unique pleading and proof requirements. As such, this is not a typical negligence case nor is it a common-law fraud or misrepresentation action. This is a taxpayer damage action brought under General Municipal Law § 51.

Plaintiffs’ causes of action must be adjudged defined solely by reference to a specific anticorruption statute, namely General Municipal Law § 51. This court returns to a cause of action which it considered in a case involving a taxpayer challenge to regionalization of a municipal water board and allegations of improper conduct.

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Related

Falk v. Goodman
163 N.E.2d 871 (New York Court of Appeals, 1959)
Indig v. Finkelstein
244 N.E.2d 61 (New York Court of Appeals, 1968)
Andre v. Pomeroy
320 N.E.2d 853 (New York Court of Appeals, 1974)
Rotuba Extruders, Inc. v. Ceppos
385 N.E.2d 1068 (New York Court of Appeals, 1978)
Zuckerman v. City of New York
404 N.E.2d 718 (New York Court of Appeals, 1980)
Winegrad v. New York University Medical Center
476 N.E.2d 642 (New York Court of Appeals, 1985)
Strychalski v. Mekus
54 A.D.2d 1068 (Appellate Division of the Supreme Court of New York, 1976)
Jordan v. Musinger
197 A.D.2d 889 (Appellate Division of the Supreme Court of New York, 1993)
Schulz v. State
217 A.D.2d 393 (Appellate Division of the Supreme Court of New York, 1995)
Montecalvo v. City of Utica
233 A.D.2d 960 (Appellate Division of the Supreme Court of New York, 1996)
Montecalvo v. City of Utica
170 Misc. 2d 107 (New York Supreme Court, 1996)

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Bluebook (online)
171 Misc. 2d 921, 656 N.Y.S.2d 176, 1997 N.Y. Misc. LEXIS 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montecalvo-v-herbowy-nysupct-1997.