Scarsdale v. Jorling

168 Misc. 2d 1, 647 N.Y.S.2d 344, 1995 N.Y. Misc. LEXIS 590
CourtNew York Supreme Court
DecidedDecember 1, 1995
StatusPublished
Cited by1 cases

This text of 168 Misc. 2d 1 (Scarsdale v. Jorling) 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
Scarsdale v. Jorling, 168 Misc. 2d 1, 647 N.Y.S.2d 344, 1995 N.Y. Misc. LEXIS 590 (N.Y. Super. Ct. 1995).

Opinion

OPINION OF THE COURT

Donald N. Silverman, J.

The instant matter was originally commenced pursuant to CPLR article 78. It seeks various forms of relief including mandamus to review, mandamus to compel, and prohibition. Specifically, petitioner originally sought to: (1) annul and cancel an interim decision of respondent Thomas Jorling rendered on November 22, 1994, which held, in part, that the Department of Environmental Conservation (DEC) lacked administrative authority to address (a) the imposition as of July 1, 1992 of increased water rate(s) charged to petitioner by [4]*4the New York City Water Board (the Board), (b) the issue of excess water consumption including the method of calculating the amounts of both entitlement and excess water, and (c) the resolution of disputes over the rate for excess water charged by the Board; (2) declare the higher rates imposed by the Board as of July 1, 1992 to be unlawful; (3) direct the DEC to address and resolve the issues of excess per capita water consumption under the authority of Administrative Code of the City of New York § 24-360, also known as the Water Supply Act of 1905 (the Act); and (4) as an alternative, a declaration granting the same relief in the event the DEC is without jurisdiction.

This court, in its prior decision-judgment of January 31, 1995, elected to treat this matter as an action for declaratory judgment. The instant decision-judgment accordingly treats this application as one for declaratory judgment.

By decision-order of May 4, 1995 this court permitted the County of Westchester to intervene as a petitioner-intervenor. The petition of Westchester sought the same declaratory relief to the extent that it sought to have the rate increase for entitlement water declared unlawful. Although the original motion to intervene was unopposed, respondents seek to dismiss this claim for failing to state a cause of action under CPLR 7803 and as untimely. With respect to the sufficiency of the claim, the court finds that petitioner-intervenor has set forth a prima facie claim for declaratory relief.

With respect to timeliness, the claims of both petitioner and petitioner-intervenor have been challenged as barred under CPLR 217’s four-month period of limitation. Respondents argue that the measuring date is July 1, 1992 when the rate increase was imposed. This argument must fail for the following reasons. First, the controlling date is typically that of a final and binding decision. Here, the issue of rate increase is open to administrative review. The November 22, 1993 interim decision was the first administrative statement to expressly disclaim authority over the issues now before the court and was further clarified by the December 14, 1994 second interim decision. Hence, the Scarsdale petition, at least, is timely since it was brought within four months of the first interim decision. Second, both petitions are timely because of the nature of the claims. Respondent Board is alleged to be acting beyond the scope of its authority. Under CPLR 7803 (2) this is referred to as a writ of prohibition. The alleged wrong is continuing (see, Matter of Forte v Supreme Ct., 48 NY2d 179, 183 [1979]). Hence, the petition is timely since the wrong it challenges is continuing.

[5]*5BACKGROUND

Petitioner, Scarsdale, is a community located along the supply routes of the reservoir systems (Croton and Catskill/ Delaware) providing water to the City of New York. It has a right to connect with the systems (see, Administrative Code § 24-360 [a]). However, a consumer, such as petitioner, is obligated to pay to the City, "such fair and reasonable water charges or rates as may be agreed upon between the commissioner of environmental protection [of the City] and the authorities of such municipal corporations or water districts” (Administrative Code § 24-360 [b]). Absent agreement, the DEC is empowered to resolve disputes (ibid).

The Act refers to water which the upstate municipalities are entitled (see, Administrative Code § 24-360 [a], [e]). Water taken by the upstate municipalities in excess of the entitlement amount is not addressed in the Act.

Respondent Board alleges that the method of allocation previously relied upon, which has existed since at least 1905 under the provisions of the Act, has resulted in the residents of the City being charged a higher rate than that imposed upon upstate customers. Due to increased upstate demand and the previous practice of upstate communities choosing which reservoir system they would draw from, this situation has reportedly worsened. The Board has predicted an increased cost of supply that will not be proportionally covered by the prior rates charged to upstate communities.

In August 1991, the Board petitioned the DEC "to fix a fair and reasonable rate to be charged for supplying entitlement water to upstate municipalities connected to the reservoir systems supplying water to the City of New York.” The petition was returned without resolution by DEC. In its return cover letter, dated January 28, 1992, DEC explained that the petition did not comply with the applicable procedural requirements of 6 NYCRR part 603, which is predicated upon an inability to reach agreement between the Board and the affected municipality as to the proposed rate. The letter went on to state that responsibility for establishing the rate initially lies with the Board.

By resolution adopted April 2, 1992 and effective July 1, 1992, the Board unilaterally imposed higher rates on the entitlement water supplied to upstate municipalities from both the Croton and Catskill / Delaware reservoir systems. This unified rate for entitlement water from both reservoir systems is [6]*6approximately $165 per million gallons. Moreover, the Board also imposed a new and substantially higher rate for excess water equal to the current in-City rate ($1,350 per million gallons). It is not clear precisely when the rate for excess water was imposed by the Board, however, the petition alleges it is currently in effect along with the newly imposed rate for entitlement water. These rates were imposed without agreement with petitioner or resolution by the DEC.

Subsequently, the County of Westchester submitted an administrative petition to DEC pursuant to 6 NYCRR part 603. The DEC thereafter scheduled an issues conference on March 30, 1993. Petitioner, the Village of Scarsdale, appeared, filed for and was granted party status, as were several other municipal entities. The record of the issues conference was closed on June 18, 1993 and a written issues ruling delineating the issues to be addressed was issued by an Administrative Law Judge (ALJ) on August 9, 1993. The Village of Scarsdale filed an administrative appeal of the issues ruling with respect to DEC’s excluding from consideration the Board’s unilateral rate increase and the rate charged for "excess” water consumption.

In response to this appeal, an interim decision was rendered and issued by DEC on November 22, 1993 by Commissioner Thomas Jorling. It essentially affirmed the determination of the ALJ in the issues ruling.

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Related

Village of Scarsdale v. Jorling
229 A.D.2d 101 (Appellate Division of the Supreme Court of New York, 1997)

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Bluebook (online)
168 Misc. 2d 1, 647 N.Y.S.2d 344, 1995 N.Y. Misc. LEXIS 590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scarsdale-v-jorling-nysupct-1995.