Zimmer v. Town of Brookhaven

247 A.D.2d 109, 678 N.Y.S.2d 377, 1998 N.Y. App. Div. LEXIS 10118
CourtAppellate Division of the Supreme Court of the State of New York
DecidedOctober 5, 1998
StatusPublished
Cited by12 cases

This text of 247 A.D.2d 109 (Zimmer v. Town of Brookhaven) 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
Zimmer v. Town of Brookhaven, 247 A.D.2d 109, 678 N.Y.S.2d 377, 1998 N.Y. App. Div. LEXIS 10118 (N.Y. Ct. App. 1998).

Opinion

OPINION OF THE COURT

Rosenblatt, J. P.

The appellant, Donald Zimmer, claims that the respondent, Town of Brookhaven, is legally obligated to reimburse him for legal expenses that he incurred in defending a Federal criminal prosecution. He was indicted for alleged improprieties under the Hobbs Act (18 USC § 1951) in connection with his duties as a Town of Brookhaven Councilman. The case went to trial and he was acquitted.

Before the Supreme Court, and on this appeal, Zimmer has contended that the Town is under a “prior” or “pre-existing” legal obligation to reimburse him. He characterizes his complaint as asserting a cause of action to recover damages for breach of an “implied-in-fact” contract. He states that after he was indicted, the Town furnished him with an attorney, at no cost to him, but that the attorney withdrew, owing to a conflict of interest. He then engaged his own legal counsel, at his own expense. In his complaint Zimmer has demanded reimbursement from the Town. The Town has refused, even though, Zimmer avers, “the Town indicated to [him] that his legal fees and expenses would be ‘taken care of ”.

On the Town’s motion, the Supreme Court dismissed the complaint pursuant to CPLR 3211 (a) (7) for failure to state a cause of action. We agree with the Supreme Court’s determination and affirm the dismissal.

When a public employee looks to the public purse to be defended, compensated, indemnified, or reimbursed in connection with legal proceedings brought against that employee, a number of themes come into play, two of which have been recurrent. On the one hand, there is the long-standing and frequently invoked constitutional prohibition against the use of public moneys for private purposes (NY Const, art VIII, § 1; Matter of Chapman v City of New York, 168 NY 80; Corning v [111]*111Village of Laurel Hollow, 48 NY2d 348; Buckley v City of New York, 264 App Div 116, affd 289 NY 742; Donahue v Keeshan, 91 App Div 602, 604). Often balanced against this is the principle that in appropriate cases and under fixed criteria, an employer, including a governmental employer, should stand behind an employee who is sued for acts performed while in the course of a duty for that employer (see, Howe v Buffalo, N. Y. & Erie R. R. Co., 37 NY 297; Matter of Hogue v Zoning Bd. of Appeals, 239 AD2d 807; Matter of Kane v McClellan, 110 App Div 44; see also, Cole, Defense and Indemnification of Local Officials: Constitutional and Other Concerns, 58 Alb L Rev 789; 1978 Report of NY Law Rev Commn, 1978 McKinney’s Session Laws of NY, at 1605).

Before the State Legislature sought to create comprehensive standards with regard to these sometimes competing interests, a body of case law evolved. Based on the belief that a person who took on public employment was perceived to have also assumed the risks of litigation, the earlier cases evinced an extreme reluctance to impose any obligation on public employers to defend or indemnify their employees (see, e.g., People ex rel. Underhill v Skinner, 74 App Div 58; Donahue v Keeshan, 91 App Div 602, 604, supra; see also, Matter of Chapman v City of New York, 168 NY 80, 86, supra). Although this perception gave way to the recognition that defense and indemnification of employees, in proper cases, may be considered an emolument of public service (see, e.g., Matter of Guarino v Anderson, 259 NY 93; Matter of Kane v McClellan, 110 App Div 44; Matter of Schulz v Doetsch, 217 AD2d 861), the public employer’s obligation has been construed narrowly, defeating employee claims that did not fall clearly within a particular statutory authorization (see, e.g., People ex rel. Moss v Board of Supervisors, 178 App Div 716; Leo v Barnett, 48 AD2d 463, affd 41 NY2d 879), so as to rest upon a strictly public, as opposed to private, benefit (see, e.g., Matter of Kilroe v Craig, 208 App Div 93, 96, affd 238 NY 628; Buckley v City of New York, 264 App Div 116, affd 289 NY 742, supra). It was also well settled that any such employee claims needed a pre-existing, legislative basis (see, e.g., Gavin v Board of Supervisors, 221 NY 222; Matter of Deuel v Gaynor, 141 App Div 630). Because it amounts to a prohibited public gift, a retroactive authorization has been held to fail (see, Matter of Jensen, 44 App Div 509; see generally, Annotation, Payment of Attorneys’ Services in Defending Action Brought Against Officials Individually as Within Power or Obligation of Public Body, 47 ALRSth 553; [112]*112Annotation, Validity and Construction of Statute Authorizing or Requiring Governmental Unit to Indemnify Public Officer or Employee for Liability Arising out of Performance of Public Duties, 71 ALR3d 90).

THE STATUTORY FRAMEWORK

As various public employees became increasingly exposed to personal litigation, a potpourri of statutes was enacted, designed to protect the employees from individual liability (see, 1978 Report of NY Law Rev Commn, 1978 McKinney’s Session Laws of NY, at 1605 et seq.)- The State Legislature took a major step in 1978 by enacting Public Officers Law § 17 (L 1978, ch 466, § 1). Public Officers Law § .17 established standards for the defense and indemnification of State officers and employees against claims arising out of their public employment or duties. The legislation, however, did not reach public employees who were employed by other political subdivisions (such as local governments, school districts, and others). Following another report by the New York State Law Revision Commission (1981 McKinney’s Session Laws of NY, at 2315), which advocated uniformity and comprehensiveness, the Legislature undertook to remedy the “piecemeal approach”, by enacting defense and indemnification protection for a host of municipal-type employees. The Legislature established criteria, and thereby modeled Public Officers Law § 18 after section 17 (Public Officers Law § 18 [L 1981, ch 277, § 1]). With sensitivity as to State mandates, the Legislature gave local governing bodies (such as the Town of Brookhaven) an option by which they could adopt the standardized provisions of Public Officers Law § 18 (see, Matter of Coker v City of Schenectady, 200 AD2d 250).

Public Officers Law § 18 (2) (a) and (b) recite that its provisions shall apply to any public entity:

“(a) whose governing body has agreed by the adoption of local law, bylaw, resolution, rule or regulation (i) to confer the benefits of this section upon its employees, and (ii) to be held liable for the costs incurred under these provisions; or

“(b) where the governing body of a municipality, for whose benefit the public entity has been established, has agreed by the adoption of local law or resolution (i) to confer the benefits of this section upon the employees of such public entity, and (ii) to be held liable for the costs incurred under these provisions.”

In the case before us it is undisputed that in 1989 the Town enacted Local Law No. 27, by which it adopted Public Officers [113]*113Law § 18. Public Officers Law § 18 (3) (a) obligates the Town to: “provide for the defense of the employee in any civil action or proceeding,

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Cite This Page — Counsel Stack

Bluebook (online)
247 A.D.2d 109, 678 N.Y.S.2d 377, 1998 N.Y. App. Div. LEXIS 10118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zimmer-v-town-of-brookhaven-nyappdiv-1998.