Samuelsen v. Walder

29 Misc. 3d 225
CourtNew York Supreme Court
DecidedJune 4, 2010
StatusPublished
Cited by1 cases

This text of 29 Misc. 3d 225 (Samuelsen v. Walder) 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
Samuelsen v. Walder, 29 Misc. 3d 225 (N.Y. Super. Ct. 2010).

Opinion

[228]*228OPINION OF THE COURT

Saliann Scarpulla, J.

This CPLR article 78 proceeding concerns when, and under what circumstances, a public benefit corporation, formed to provide the public with a valuable public service, must permit the public to comment on decisions which may have a profound effect on it. In addition, the proceeding concerns whether, and under what circumstances, a court may intervene to enjoin budget decisions made by the public benefit corporation.

Petitioners John Samuelsen, individually and as president of Local 100, Transport Workers Union of Greater New York (the TWU), Bertha Lewis, and the Association of Community Organizations for Reform Now, Inc. (ACORN) (collectively, petitioners) sue for a declaration that the respondents Jay Walder, as Chief Executive Officer of the Metropolitan Transportation Authority (the MTA), and the New York City Transit Authority (the NYCTA) (collectively, respondents) have violated Public Authorities Law § 1205 (5) by attempting to close more than 50 subway station token booths and by closing and attempting to close more than 50 subway station customer assistant kiosks without conducting timely public hearings and without giving timely notice to community boards affected by the proposed and already carried out closings.

Petitioners also seek a declaration that, by attempting to close more than 50 subway station token booths and by closing and attempting to close more than 50 subway station customer assistant kiosks, respondents have violated their obligation under Public Authorities Law § 1204 (15) to operate transit facilities “for the convenience and safety of the public.”

Respondent MTA is a public benefit corporation created pursuant to the New York Public Authorities Law for the purpose of “the continuance, further development and improvement of commuter transportation and other services related thereto within the metropolitan commuter transportation district.” (Public Authorities Law § 1264 [1].) The governing body of the MTA consists of “a chairman, sixteen other voting members, and two non-voting and four alternate non-voting members . . . appointed by the governor by and with the advice and consent of the senate.” (Public Authorities Law § 1263 [1] [a].) The MTA acts as a parent organization to various other entities charged with providing public transportation to New York City and its environs, including respondent NYCTA. Respondent [229]*229NYCTA is a public benefit corporation created for the purpose of “the operation of transit facilities ... on a basis which will enable the operations thereof, exclusive of capital costs, to be self-sustaining.” (Public Authorities Law § 1202 [1]; § 1201.)

Pursuant to Public Authorities Law § 1204 (15) the MTA and the NYCTA are granted broad authority to “manage, control and direct the maintenance and operation of transit facilities ... for the convenience and safety of the public.” In addition, pursuant to Public Authorities Law § 1205 (1) and § 1266 (3), the MTA and the NYCTA are granted the authority to “fix or adjust the rate or rates of fare to be charged for the use of any transit facility ... as may in the judgment of the authority be necessary to maintain the operations of the authority on a self-sustaining basis.”

Though the MTA and the NYCTA are given broad authority to fix transit fares and to manage and maintain transportation systems as they may determine, the actions of the MTA and the NYCTA are nevertheless subject to formal public scrutiny. Thus, the MTA and the NYCTA are required by statute to consider community impact and opinion prior to undertaking major changes to the pricing structure or provision of transportation services to the public. As is relevant to this proceeding, Public Authorities Law § 1205 (5) provides that

“[a]ny complete or partial closing of a passenger station within the city of New York, or any means of public access to such facility, except for purposes of repair or renovation or in case of emergency shall be accomplished only if approved by resolution of the authority adopted by not less than a majority of the whole number of members of the authority then in office, and only after a public hearing.”1

Whether or not the respondents have fulfilled this statutory mandate of public scrutiny and comment is at the heart of this proceeding.

The History of this Dispute

In November 2008, the Chair and members of the MTA, who also serve as the Chair and members of the NYCTA (together, [230]*230the Board), were presented with a 2009 budget which contained a wide variety of cost-cutting measures to ensure that the respondents achieved balanced budgets for fiscal year 2009. These proposed cost-cutting measures included fare and toll increases, subway and bus service changes and eliminations, “eliminating] Station Customer Assistant (SCA) agents at 158 control areas,” and “eliminating] or reducing] staffing at 42 station agent booths in stations with two or more station agent booths.” This array of cost-cutting measures was referred to as “Additional Actions for Budget Balance” (AABB). (See affirmation of Florence Dean [Dean affirmation], exhibit B, at 36 [“New York City Transit, 2009 Major Service Reduction Proposals Summary”].)

On December 17, 2008, the Board approved the 2009 budget, which included the proposed AABB. However, implementation of “those actions within the AABB that require public hearing [were to] be brought to the Board for approval subsequent to the conclusion of the public hearing process.” (Dean affirmation, exhibit B, Board Resolution of Mar. 25, 2009, para 3.) The MTA, NYCTA and other affiliated subsidiaries and affiliates thereafter notified affected community boards of the AABB. In addition, in January and February 2009, the Board held a number of public hearings concerning the AABB. At those hearings the public was afforded the opportunity to discuss the proposed mass elimination of subway station customer assistant kiosks and subway station token booths, with concomitant mass layoffs of staff.

The Board was hopeful that the State of New York would provide additional funding for fiscal year 2009 so that it could avoid implementing the AABB. By March 2009, however, no state funding had been approved. Accordingly, by resolution dated March 25, 2009, the Board permitted the NYCTA and other affiliates to implement the AABB, including the mass elimination of subway station customer assistant kiosks and subway station token booths.

Subsequently, in or before May 2009, the New York State Legislature did approve additional funding for the MTA and its subsidiaries for fiscal year 2009. Accordingly, on May 27, 2009 the Board adopted a resolution to permit the MTA and its subsidiaries and affiliates to “take all necessary steps to rescind the implementation of the AABB listed in Attachment A to [the May 27, 2009] resolution.” (Dean affirmation, exhibit C.)

With respect to the mass elimination of subway service customer assistants and subway token booth clerks and [231]*231concomitant mass layoffs of staff, the Board resolved that these eliminations would not be accelerated but would be based, instead, on “attrition only.” In short, as of May 27, 2009, respondents rescinded the mass closings of subway station token booths and customer assistant kiosks and instead relied upon reduction of staffing through normal attrition (retirement and voluntary separation).

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Related

Samuelsen v. Walder
88 A.D.3d 587 (Appellate Division of the Supreme Court of New York, 2011)

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Bluebook (online)
29 Misc. 3d 225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/samuelsen-v-walder-nysupct-2010.