New York State Crime Victims Board v. Wendell

12 Misc. 3d 801
CourtNew York Supreme Court
DecidedMay 8, 2006
StatusPublished
Cited by3 cases

This text of 12 Misc. 3d 801 (New York State Crime Victims Board v. Wendell) 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
New York State Crime Victims Board v. Wendell, 12 Misc. 3d 801 (N.Y. Super. Ct. 2006).

Opinion

OPINION OF THE COURT

Joseph C. Teresi, J.

This case is reassigned to this judge by Administrative Judge George B. Ceresia, Jr. due to the resignation of Judge Thomas J. Spargo on April 14, 2006 (CPLR 9002).

This is a proceeding brought pursuant to Executive Law § 632-a (Son of Sam Law) in which crime victim K.A.S. seeks to modify the preliminary injunction previously granted herein to permit her to partially satisfy a $5,000,000 judgment she obtained against inmate George Wendell by having funds in Wendell’s inmate account turned over to her.

In particular, the issue presented is whether the funds in the inmate account, which consist of money received by Wendell as United States military retirement pay and United States civil service retirement pay, are exempt from satisfaction of K.A.S.’s judgment pursuant to CPLR 5205 (e) or pursuant to any applicable federal statute.

Wendell was convicted and concurrently sentenced in 2002 to 15 years for the crime of course of sexual conduct against a child in the first degree, U/s to 4 years for sodomy in the third degree and one year for endangering the welfare of a child. The sexual assaults began when K.A.S. was 10 years old and continued for 3 years. On March 2, 2004, K.A.S. obtained a judgment against Wendell in the Orange County Supreme Court in the amount of $5,000,000.

The funds in the inmate account consist of both military retirement pay and civil service benefits apparently earned through civilian employment of Wendell by the United States Government. Wendell has not shown any statute which exempts the civil service benefits from garnishment and K.A.S. has pointed out that 5 USC § 2101 (1) specifically excludes the armed forces from the definition of the civil service. K.A.S. further shows that 5 USC § 8345 (j) (1) (B) requires that payments which would otherwise be made to a civil service member shall be paid to another person “to the extent expressly provided for in the terms of. . . any . . . order ... in the nature of garnish[803]*803ment for the enforcement of a judgment rendered against such . . . Member . . . for physically, sexually, or emotionally abusing a child.”

Wendell has failed to show that the funds in his inmate account which derive from civil service benefits are exempt from garnishment.

The court rejects Wendell’s argument that the military retirement pay funds in his inmate account are exempt pursuant to 38 USC § 5301 as veteran’s benefits since the record shows that the funds are not “benefits due . . . under any law administered by the Secretary [of the Department of Veterans Affairs Administration]” (38 USC § 5301 [a] [1]) but are instead administered by the Defense Finance and Accounting Service. New York courts have long recognized that veteran’s disability benefits are subject to greater protection than regular military retirement benefits (see, Hoskins v Skojec, 265 AD2d 706 [1999]; 10 USC § 1408).

Wendell’s military retirement pay is not protected from garnishment by federal statute. In fact, 5 USC § 5520a (b) provides that “pay from an agency to an employee is subject to legal process in the same manner and to the same extent as if the agency were a private person.”

With respect to the state exemption claimed by Wendell, CPLR 5205 (e) provides as follows:

“Exemptions to members of armed forces. The pay and bounty of a non-commissioned officer, musician or private in the armed forces of the United States or the state of New York; a land warrant, pension or other reward granted by the United States, or by a state, for services in the armed forces; a sword, horse, medal, emblem or device of any kind presented as a testimonial for services rendered in the armed forces of the United States or a state; and the uniform, arms and equipments which were used by a person in the service, are exempt from application to the satisfaction of a money judgment; provided, however, that the provisions of this subdivision shall not apply to the satisfaction of any order or money judgment for the support of a person’s child, spouse, or former spouse.”

The record shows that Wendell is a retired United States Air Force technical sergeant and Wendell argues that the military retirement pay he is receiving is exempt from garnishment as either the “pay” of a “non-commissioned officer” or as a “pension” for service in the “armed forces.”

[804]*804It is generally accepted by the courts that since

“ ‘retired pay’ to which retired regular military personnel are entitled constitutes remuneration for current employment as a retired member of the armed forces, rather than a pension for past services, it is subject to garnishment to the extent that compensation for services rendered to a private employer is subject under a particular state’s law.” (31 Am Jur 2d, Exemptions § 196; see, Crane v Crane, 417 F Supp 38 [1976]; United States v Williams, 279 Md 673, 370 A2d 1134 [1977]; Elmwood v Elmwood, 295 NC 168, 244 SE2d 668 [1978]; Baker v Baker, 91 Wash 2d 482, 588 P2d 1164 [1979].)

The court finds that Wendell’s military retirement pay is not a “pension” for service in the “armed forces,” but rather constitutes the “pay” of a “non-commissioned officer.”

The military retirement pay portion of the inmate account is thus prima facie exempt from garnishment pursuant to CPLR 5205 (e). K.A.S. argues, however, that the general exemption contained in CPLR 5205 (e) must yield to the specific mandate of Executive Law § 632-a requiring that a crime victim be permitted to recover from any source of money and property belonging to a convicted person.

The United States Supreme Court has recognized “that the State has a compelling interest in ensuring that victims of crime are compensated by those who harm them” (Simon & Schuster, Inc. v Members of N.Y. State Crime Victims Bd., 502 US 105, 118 [1991]; see, Ciafone v Kenyatta, 27 AD3d 143 [2005]; Snuszki v Wright, 193 Misc 2d 490, 494 [2002], affd 1 AD3d 879 [2003], appeal dismissed 1 NY3d 623 [2004]).

New York, by enacting the Son of Sam Law in 1977, became the first state to provide such compensation to crime victims (Mem in Support of L 2001, ch 62, 2001 McKinney’s Session Laws of NY, at 1310). Thirty states and the federal government have followed New York’s lead (id.).

In 2001, the present version of the statute was enacted by the Legislature to permit victims to bring an action within three years of the discovery of any “funds of a convicted person” (Executive Law § 632-a [3]). “Funds of a convicted person” are defined as “all funds and property received from any source by a person convicted of a specified crime” (Executive Law § 632-a [1] M).

Executive Law § 632-a (1) (c) excludes “child support” and “earned income” from the funds of a convicted person. “Earned [805]*805income” is defined as income derived from one’s own labor “as distinguished from income from, for example, dividends or investment.” (Executive Law § 632-a [1] [f].)

The court finds that the funds derived from Wendell’s military retirement pay are not excluded from garnishment as “earned income” pursuant to Executive Law § 632-a (1) (c) for two reasons. First, the retirement pay Wendell is presently receiving is not derived from any current labor performed by Wendell for the United States Air Force.

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Related

New York State Office of Victim Services v. Raucci
97 A.D.3d 235 (Appellate Division of the Supreme Court of New York, 2012)
New York State Crime Victims Board v. Harris
68 A.D.3d 1269 (Appellate Division of the Supreme Court of New York, 2009)

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Bluebook (online)
12 Misc. 3d 801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-state-crime-victims-board-v-wendell-nysupct-2006.