Peterson v. Corbin

275 A.D.2d 35, 713 N.Y.S.2d 361, 2000 N.Y. App. Div. LEXIS 9440
CourtAppellate Division of the Supreme Court of the State of New York
DecidedSeptember 25, 2000
StatusPublished
Cited by22 cases

This text of 275 A.D.2d 35 (Peterson v. Corbin) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peterson v. Corbin, 275 A.D.2d 35, 713 N.Y.S.2d 361, 2000 N.Y. App. Div. LEXIS 9440 (N.Y. Ct. App. 2000).

Opinions

OPINION OF THE COURT

Sullivan, J.

On this appeal, we must determine whether the defendant Roger H. Corbin, a Nassau County Legislator, should be preliminarily enjoined from voting on the appointment of members to the board of directors of the Nassau County Regional Off-Track Betting Corporation (hereinafter the Nassau OTB).

By order to show cause dated May 10, 2000, the plaintiff Gregory P. Peterson, the President of the Nassau OTB, commenced this action against Corbin and the Nassau County Legislature-seeking (1) a judgment declaring that Corbin must recuse himself from voting as a Legislator on any appointment to the board of directors of the Nassau OTB, and (2) to permanently enjoin the Nassau County Legislature from conducting any vote on the appointment to the board of directors of the Nassau OTB. Peterson alleged that Corbin’s employment as a branch manager for the New York City Off-Track Betting Corporation (hereinafter NYC-OTB) and membership in Local 858 of the International Brotherhood of Teamsters (hereinafter Local 858), which represents all of the employees of the Nassau OTB and the branch managers of NYC-OTB, [37]*37presented Corbin with interests which conflicted with his duties as a Nassau County Legislator, in violation of the Nassau County Code of Ethics (Nassau County Charter, tit XXII, § 2218).

Following a hearing on May 15, 2000, the date on which the vote was scheduled to take place, the Supreme Court issued a preliminary injunction against Corbin enjoining, restraining, and staying him from voting on the appointment to the board of directors of Nassau OTB after finding the existence of an “appearance of impropriety.” We reverse.

To obtain the drastic remedy of a preliminary injunction, a movant must demonstrate (1) a likelihood or probability of success on the merits, (2) irreparable harm if the injunction is denied, and (3) a balance of the equities in favor of granting the injunction (see, Aetna Ins. Co. v Capasso, 75 NY2d 860; Grant Co. v Srogi, 52 NY2d 496). We agree with Corbin’s contention that Peterson did not meet this “particularly high” burden (Council of City of N. Y. v Giuliani, 248 AD2d 1, 4).

While it is true that Peterson was not required to establish the certainty of success on the merits but merely the likelihood of success, we have said that: “Preliminary injunctive relief is a drastic remedy which will not be granted ‘unless a clear right thereto is established under the law and the undisputed facts upon the moving papers, and the burden of showing an undisputed right rests upon the movant’ ” (Nalitt v City of New York, 138 AD2d 580, 581, quoting First Natl. Bank v Highland Hardwoods, 98 AD2d 924, 926).

Thus, Peterson was required to demonstrate a likelihood of success on the merits by making a prima facie showing, at least by affidavits, if not by testimony, of conflicts of interest. However, the only showing Peterson made is found in his conclusory affidavit in support of the application for the order to show cause, and in the testimony of John Nagy, general counsel for the Nassau OTB. Nagy’s testimony consisted primarily of hearsay, and was significantly impeached by cross-examination, as well as by the testimony of Barbara Reda, president of Local 858. Clearly, this was not sufficient to enjoin a duly elected member of the Nassau County Legislature from exercising his statutory right to vote for the appointment of members of the board of directors of the Nassau OTB (see, Racing, Pari-Mutuel Wagering and Breeding Law § 502 [1]).

By contrast, in opposing Peterson’s motion for a preliminary injunction, Corbin relied on Reda’s testimony demonstrating that, as a branch manager of NYC-OTB, Corbin does not hold [38]*38a policy-making position and that as a mere member of Local 858, Corbin is not a member of the negotiating team. Corbin also relied on a report by the Nassau County Ethics Board, which had considered whether Corbin’s vote for directors of the Nassau OTB would be prohibited by Nassau County Charter § 2218 (1) (a) (3) and its comparable Administrative Code section. By a divided vote of five members, the majority held: “We do not find that Mr. Corbin’s vote for, or against candidates for appointment to the Board of Directors of the Nassau OTB may create a prohibited conflict with his official duties as a Nassau County Legislator. Accordingly, Mr. Corbin is not required to recuse himself, and he may vote on the Nassau OTB appointments.”

Accordingly, Peterson did not make a sufficient showing as to conflicts of interest. Also, his reliance on Matter of Tuxedo Conservation & Taxpayers Assn. v Town Bd. (69 AD2d 320) and Matter of Zagoreos v Conklin (109 AD2d 281) is misplaced. Those cases are distinguishable on the all-important factor of whether the questioned official benefited directly and individually from the action that was taken.

To begin with, in Tuxedo, the “lame duck” town board, which included a member named Martineau, voted to grant necessary preliminary approval to Sterling Forest Development Corp. (hereinafter Sterling) to construct a 3,900-unit residential development. In Zagoreos, Orange and Rockland Utilities, Inc. sought certain permits and variances in order to convert two oil-burning generating units into coal-burning units. During the course of the proceedings in Zagoreos, certain members of the town board and the board of zoning appeals, who were also employees of Orange and Rockland Utilities, Inc., voted. Importantly, the claim in each case was that the votes, which had been already cast, were tainted as the result of conflicts of interest. In this case, however, Peterson made a “pre-emptive strike” to prevent a public officer from acting based on claimed conflicts of interest even though, absent extraordinary circumstances, the courts are not to enjoin the legislative process (see, Pospisil v Anderson, 140 AD2d 317; Matter of One Pelham Rd. Co. v Paduano, 123 AD2d 768; H. Dev. Corp. v City of Yonkers, 64 AD2d 690; see also, 13 Weinstein-Korn-Miller, NY Civ Prac ¶6301.32).

More significantly,.in both Tuxedo and Zagoreos, the conflicts of interest on the part of the public officials were clear and obvious. In Tuxedo, the residential development had been hotly debated for three years, as it would result in increasing the [39]*39town’s population more than four hundred percent. Preliminary matters, including the State Environmental Quality Review Act, had been referred to the planning board, and while that body was actively considering it, it became clear that a study would not be concluded by January 1, 1978. In December 1977, the “lame duck” town board passed a local law transferring authority over the development from the planning board to the town board. On December 28,1977., the town board voted to grant all the preliminary approvals to Sterling, and the controlling vote was cast by Martineau, who was vice-president of an advertising agency that had City Investing Corp., of which Sterling was a wholly owned subsidiary, as a client. In Zagoreos, votes benefiting Orange and Rockland Utilities, Inc. were cast by public officials who were employees of Orange and Rockland Utilities, Inc.

In this case, Corbin’s employment as a NYC-OTB branch manager and his position as a member of the Nassau County Legislature pose no conflict since there is nothing in the record indicating dealings between NYC-OTB and the Nassau County Legislature.

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Bluebook (online)
275 A.D.2d 35, 713 N.Y.S.2d 361, 2000 N.Y. App. Div. LEXIS 9440, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peterson-v-corbin-nyappdiv-2000.