People v. Penn Central Transportation Co.

95 Misc. 2d 748, 417 N.Y.S.2d 822, 1978 N.Y. Misc. LEXIS 2499
CourtCriminal Court of the City of New York
DecidedAugust 12, 1978
StatusPublished
Cited by7 cases

This text of 95 Misc. 2d 748 (People v. Penn Central Transportation Co.) is published on Counsel Stack Legal Research, covering Criminal Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Penn Central Transportation Co., 95 Misc. 2d 748, 417 N.Y.S.2d 822, 1978 N.Y. Misc. LEXIS 2499 (N.Y. Super. Ct. 1978).

Opinion

OPINION OF THE COURT

John P. Collins, J.

The defendants move to dismiss the accusatory instruments pursuant to CPL 170.30.

The defendant, Penn Central Transportation Co., Inc. (hereinafter referred to as "PCT”) is charged in five cases in New York County with the misdemeanor (Administrative Code of City of New York, § 488-1.0) — refusal to comply with orders of the New York City Fire Commissioner. The defendant, Penn Central Railroad Co. (hereinafter referred to as "PCR”) is charged in one case in Kings County with a similar offense. The six cases are consolidated for the purpose of this, motion.

The New York County matters relate to certain hazardous conditions — alleged failure to replace defective water hydrants, arrange for flow and pressure tests of standpipes, provide an approved yard hydrant system, repair sprinklers and standpipe systems and obtain a certificate of fitness for a sprinkler — in railroad yards in the West 30th Street area. The Kings County matter relates to an alleged failure to clear certain debris from railroad tracks in the Bay Ridge locality.

The defendants contend (1) that the court lacks jurisdiction by reason of subdivision (a) of section 205 of title 11 of the United States Code, (2) that the defendants are not proper parties, (3) that the accusatory instruments are defective and insufficient on their face and (4) that the service — of all the summonses, including service on PCR, a nonexistent corporation — was made in an unlawful and improper manner and should be vacated.

The People answer (1) that subdivision (a) of section 205 of Title 11 of the United States Code does not divest this court of jurisdiction, (2) that whether the defendants are proper parties is a matter of fact to be resolved at trial, (3) that the accusatory instruments meet the requirements of the CPL and (4) that the issue of the validity of service of the summonses should be adjudicated at a pretrial hearing.

The court turns first to the defendants’ contention that subdivision (a) of section 205 of title 11 of the United States Code divests this court of jurisdiction.

[751]*751The defendant PCT is a corporation formed under the laws of the Commonwealth of Pennsylvania. In 1970, the company filed a petition in the United States District Court, Eastern District of Pennsylvania pursuant to section 205 of title 11 of the United States Code seeking a plan of reorganization on the ground that it was insolvent. The petition was granted and trustees were appointed.

The defendant, PCT, maintains that during reorganization proceedings, the Federal court has exclusive jurisdiction over the defendant and its property and that the defendant cannot be tried for a criminal offense in the courts of New York. In support of this position, the defendant cites United States v Dorigan (236 F Supp 106).

This court rejects this argument advanced by the defendants. Bankruptcy proceedings are civil in nature (US Code, tit 11, § 11). Such a proceeding does not divest a State court of criminal jurisdiction (see People v Topping Bros., 79 Misc 2d 260; People v Murray, 174 Misc 251). In the Dorigan (supra) case on which the defendants rely, the proceeding was commenced against the trustees appointed by the bankruptcy court. In the instant cases, the trustees are not defendants but rather the corporation. Other cases relied on and cited by the defendants relate to civil actions and are not applicable here.

The court turns next to the second argument in support of the motion to dismiss — that PCT is not a proper defendant. The issue before the court is: Can a corporation undergoing reorganization in a United States bankruptcy court be liable for criminal conduct pursuant to section 20.20 of the Penal Law? The court finds in the affirmative.

The arguments of the defendant — that the corporation PCT has ceased to exist by reason of reorganization and that only the trustees are proper parties — are rejected.

Various courts have previously held that a criminal prosecution may be initiated against a merged, consolidated or voluntarily dissolved corporation (see United States v United States Vanadium Corp., 230 F 2d 646, cert den 351 US 939; United States v Brakes, Inc., 157 F Supp 916). Nothing is contained in the language of section 205 of title 11 of the United States Code to indicate that a corporation in reorganization ceases to exist and a number of courts have held that the bankruptcy statute contemplates the continued corporate existence of the debtor (see Connecticut Ry. & Light, v Palmer, 305 US 493). The New York City Criminal Court, in [752]*752an unreported decision People v Penn Cent. Transp. Co. (Criminal Ct, Queens County, Nov. 29, 1972) has previously had occasion to rule on a similar matter. There the court held: "The trustees may be parties defendant in any civil action which may be commenced to enforce payment of a fine resulting from a guilty verdict in this criminal proceeding but the corporation, still in existence though the trustees are managing its affairs may be found guilty of the offense.”

The court now considers — the defendants’ third contention —the sufficiency of the accusatory instruments. Each of the six accusatory instruments consists of two papers. The first is an affidavit sworn to by an employee of the Fire Department Division of Fire Prevention. In each case the affidavit relates that on a particular date, the defendant "did wilfully neglect and refuse to comply with an order of the Fire Commissioner of the City of New York” and lists the number of the pertinent order. The affidavit further states the date on which the order was served, the location of the premises and contains a statement that "the defendant is the Authorized Person In Charge.” Incorporated by reference and attached to the complaint is a second paper — a copy of the Fire Commissioner’s order which describes the initial alleged violation. The complaint requests that the defendant be dealt with in accord with section 488-1.0 of the Administrative Code.

The applicable sections of the CPL in determining whether a complaint is sufficient — are CPL 100.15 and 100.40. In pertinent part CPL 100.15 provides: "1 * * * Each instrument must contain an accusatory part and a factual part * * * 2. The accusatory part of each instrument must designate the offense or offenses charged * * * 3. The factual part of such instrument must contain a statement of the complaint alleging facts of an evidentiary character supporting or tending to support the charges.” (Emphasis added.) CPL 100.40 in pertinent part provides:

"An information * * * is sufficient on its face when:

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Bluebook (online)
95 Misc. 2d 748, 417 N.Y.S.2d 822, 1978 N.Y. Misc. LEXIS 2499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-penn-central-transportation-co-nycrimct-1978.