May 04, 2023

Employer's rejecting hearing officer's recommendation to approve employee's GML §207-c application for benefits held arbitrary and capricious under the circumstances

A Correction Officer [Plaintiff] discovered three laundry bags in the middle of a hallway on the housing unit floor. Believing the bags blocking the hallway was a safety concern to persons walking the hallway, Plaintiff attempted to move the bags close to the wall and  sustained a shoulder injury while attempting to move one of the bags. Plaintiff's Employer [Respondent] contended Plaintiff's injury did not occur as a result of the performance of duties and rejected Plaintiff's application for General Municipal Law §207-c disability benefits. Pursuant to a memorandum of agreement between, among others, Plaintiff's union and the Respondent, a hearing was held on the issue whether Petitioner's injury occurred as the result of the performance of duties.

The Hearing Officer found that the laundry bags in the hallway posed a safety hazard and that Plaintiff had a duty to remedy the situation immediately. Although the Hearing Officer recommended that Plaintiff receive GML §207-c disability benefits, Respondent issued a final determination rejecting the Hearing Officer's recommendation and denied Plaintiff's application for §207-c disability benefits. Plaintiff then commenced the instant proceeding before the Appellate Division. *

The Appellate Division explained that its review of this administrative determination was limited, and subject to the following considerations:

1. Was the determination affected by an error of law or was it arbitrary and capricious or an abuse of discretion and a determination "is arbitrary and capricious when it is taken without sound basis in reason or regard to the facts".

Passing these tests:

2. An agency's determination is entitled to great deference; and

3. A court must sustain the determination even if the court concludes that it would have reached a different result than the one reached by the agency." 

However, in this instance the Appellate Division, citing Matter of Casselman v Village of Lowville, 2 AD3d 1281, concluded that [Petitioner] established "... a direct causal relationship and thus demonstrated ... entitlement to benefits under General Municipal Law §207-c",

Accordingly, the Appellate Division held that the Respondent's decision to deny Plaintiff's application for §207-c benefits was arbitrary and capricious and unanimously annulled the Respondent's decision "on the law without costs" and granted Plaintiff's petition.

* The Appellate Division, citing Erie County Sheriff's Police Benevolent Assn., Inc., 159 AD3d at 1561-1562, consider the merits of Plaintiff's petition notwithstanding the fact the decision at issue was not made as a result of a hearing held, and at which evidence was taken pursuant to direction by law "in the interest of judicial economy."

Click HERE to access the Appellate Division's decision posted on the Internet.