Employer entitled to reimbursement of the cost of post-employment health insurance benefits it erroneously paid on behalf of a former employee

Employer entitled to reimbursement of the cost of post-employment health insurance benefits it erroneously paid on behalf of a former employee
2014 NY Slip Op 04203, Appellate Division, Second Department

In this action a former employee [Plaintiff] of a municipal entity [Municipality] filed a petition in the nature of mandamus to compel her former employer to provide her with post-employment health insurance benefits.

Supreme Court granted the Municipality’s motion summary judgment dismissing [1] Plaintiff’s petition for a writ of mandamus and [2] her action alleging breach of contract.

The court then granted the Municipality’s counterclaim for the reimbursement of the cost of health insurance coverage that it provided to Plaintiff since December 31, 2009, a sum in the amount of $19,866.57. The Appellate Division affirmed the Supreme Court rulings, with costs.

The Appellate Division said that the Municipality had established its entitlement to judgment as a matter of law with respect to dismissing Plaintiff’s cause of action alleging breach of contract. The Court explaining that the municipality’s resolution providing employees of the employer with post-employment health insurance benefits was limited to “employees who are retired, eligible to retire, or have reached retirement age.”

The court said that the Municipality had established a prima facie case that Plaintiff was not a "retiree," as defined in the applicable regulations, 4 NYCRR 73.1[d], [e], [f]; 73.2[a][3][iv].  Plaintiff, on the other hand, said the court, failed to raise a triable issue of fact as to whether she was a retiree or the existence of any contractual right to the Municipality’s providing her with post-employment health insurance benefits.

Further, said the Appellate Division, citing Parkview Assoc. v City of New York, 71 NY2d 274, although the Municipality may have performed an act contrary to law or made an administrative error in commencing to pay post-employment health insurance benefits on behalf of Plaintiff, as a municipal entity:

1. The Municipality cannot be estopped from denying the existence of a contractual obligation to continue making those payments and

2. The Municipality cannot be held to have ratified any such contractual obligation.

As the Municipality had also made a prima facieshowing of its entitlement to judgment as a matter of law on its counterclaim for reimbursement of the amount it erroneously paid for Petitioner’s post-employment health insurance coverage and Plaintiff failed to raise a triable issue of fact, the Appellate Division ruled that the granting of summary judgment in favor of the Municipality on its counterclaim was also proper.

In seeking to vacate an arbitration award, the moving party must set out the grounds relied upon for setting the award aside

In seeking to vacate an arbitration award, the moving party must set out the grounds relied upon for setting the award aside

2014 NY Slip Op 04451, Appellate Division, First Department

The arbitrator had found the employee [Petitioner] guilty of certain disciplinary charges and had imposed the penalty of a thirty-day suspension without pay. A few months later Petitioner was again served with a notice of discipline and the arbitrator, finding Petitioner guilty of misconduct,  terminated his employmentt.

Petitioner appealed. Supreme Court dismissed his Article 75 petitions seeking to vacate the arbitration awards, which decisions the Appellate Division affirmed.

The Appellate Division explained that Petitioner failed to argue, “let alone set forth, any of the grounds for setting aside an arbitration award.” Further, said the court, Petitioner did not allege an statutory basis for vacating the award such as corruption, fraud or misconduct in procuring the award or partiality of the arbitrators, nor did he allege that the arbitrators exceeded their power, failed to follow the procedure set forth in CPLR Article 75, or that the award is irrational or violates public policy."

In the view of the Appellate Division, “Petitioners' allegations amount to nothing more than a claim that the arbitrators made errors of fact or law which, even if true, does not warrant vacatur of the awards.”

Selected reports and information published by New York State's Comptroller Thomas P. DiNapoli during the week ending July 25, 2014

Selected reports and information published by New York State's Comptroller Thomas P. DiNapoli during the week ending July 25, 2014

Click on text highlighted in color  to access the full report

 

Town of Berne – Procurement (Albany County)
The town board has adopted comprehensive procurement policies and procedures that provide guidance as to when items must be competitively bid and when written or verbal quotes should be obtained for purchases not required to be bid. Town officials review and update these policies annually to ensure they provide guidance for officials and employees to follow when bidding is not required by law.

Town of Broadalbin – Leave Accruals (Fulton County)
The town has not established a system to ensure that leave accruals earned and used by highway department employees are properly accounted for. Employees maintain their own leave records, including leave balances and recording leave time used and earned, without oversight and independent verification by town officials.

Lakeview Public Library – Tuition Reimbursement and Procurement (Nassau County)
The library did not use competitive methods when procuring goods and services that were not subject to competitive bidding. The board’s adopted purchasing policy did not require officials to solicit competitive proposals prior to engaging the services of professional service providers. In addition, the board did not properly authorize all tuition reimbursements paid to the director.

Village of North Syracuse – Claims Audit (Onondaga County)
The board needs to improve internal controls over the claims audit process. Although the clerk-treasurer reviews each individual claim on the abstracts, the board reviews and approves the abstracts without reviewing the actual claims.

Town of Thurston – Financial Condition (Steuben County)
The board did not adopt structurally balanced budgets or consistently monitor the budget. As a result, the general fund reported a deficit unexpended fund balance of $18,343 on Dec. 31, 2012. Although fund balance increased to approximately $9,000 in 2013, this amount is insufficient to cover unexpected expenses.

Town of Willsboro – Internal Controls Over Selected Financial Operations (Essex County)
The town clerk did not maintain adequate, accurate and complete records and reports. In addition, collections for clerk fees and real property taxes were not physically secured prior to deposit, were not deposited timely and intact and were not remitted to the appropriate party timely or in the appropriate amounts. Auditors also found that the board did not audit the records of the clerk as required.

York Fire Department – Controls Over Financial Activities (Livingston County)
The board did not adopt financial policies and procedures addressing cash receipts and disbursements, procurement, or claims processing and review, and has not adopted a written code of ethics. Further, the board did not require the treasurer to provide it with adequate monthly reports that included receipt, asset and liability information.

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