Accepting the benefits of a settlement agreement deemed ratification and "not lightly cast aside" by the courts

A Village police officer [Officer] was involved in an off-duty accident that rendered him paralyzed from the waist down. Officer filed a notice of claim alleging that the Village discriminated against him after he became disabled. Approximately nine months later, Officer executed a settlement agreement [Agreement] pursuant to which he agreed to withdraw his notice of claim and waive his right to assert certain claims against the Village in exchange for certain benefits, including remaining employed as a police officer for three years until 2016, when his pension rights would vest. The Agreement also provided that Officer would be eligible to continue to be employed by the Village in a different capacity at a reduced rate of pay.

Officer worked in a transitional light-duty police officer position beyond the 2016 deadline established in the Agreement.  In March 2019, however, the Village informed the plaintiff that it would be enforcing the terms of the settlement agreement and instructed him to resign as a police officer as of April 1, 2019. The Village invited Officer to apply for certain lower-paying light duty positions in accordance with the terms of the settlement agreement.

In June 2019, Officer commenced an action to set the Agreement aside. Supreme Court granted a cross-motion to dismiss the complaint, holding that Officer's complaint was subject to dismissal based on Officer's ratification of the Agreement. Subsequent efforts by Officer to vacate the agreement and obtain other relief proved fruitless and ultimately the various efforts made by Officer to set the Agreement aside were considered by the Appellate Division.

The Appellate Division, citing Hallock v State of New York, 64 NY2d 224, said that "Stipulations of settlement between parties are binding contracts enforceable by the court and, as such, they are favored and [are] 'not lightly cast aside' ... especially where, as here, the party seeking to set aside the stipulation was represented by counsel."

Noting that Officer "accepted the benefits of the settlement agreement" continuing to work as a police officer for the Village from 2013 through early 2019, three years beyond the end date he bargained for and did not seek to set aside the Agreement on any of the grounds raised in his complaint at any point before commencing [the instant] action in 2019, the Appellate Division held that the Village was "entitled to dismissal of the complaint on the ground that [Officer] ratified the settlement agreement."

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

Workers' Compensation Board required to address the issues raised by a Claimant for workers' compensation benefits in an administrative appeal to the Board

The Workers' Compensation Board, [Board] found that where, as here, a claim for workers' compensation benefits "was never indexed," the provisions of Workers' Compensation Law §25(2)(b) are inapplicable and ruled that the employer did not file an untimely notice of controversy. Claimant's subsequent application for reconsideration was denied. Claimant appealed the Board's decision.

The Appellate Division held that although the Board concluded that Workers' Compensation Law §25(2)(b) is inapplicable given that the claim was never indexed, the Board did not address the related issue raised upon administrative appeal that the employer's initial FROI-00 form was a binding acceptance of the claim.* Further, said the court, the Board provided "no reasoning or basis for its determination that the notice of controversy was timely filed." 

This, said the Appellate Division , precluded "a meaningful appellate review by this Court".

Citing  Matter of Sequino v Sears Holdings, 206 AD3d 1408 and Matter of Ippolito v NYC Tr. Auth., 203 AD3d 1360, the Appellate Division reversed the Board's decision, concluding that the matter must be remitted to the Board for it "to satisfy its obligation to address the issues raised by claimant on administrative appeal and provide a detailed explanation for its determination."

* Claimant contended that the employer's initial FROI-00 form indicated "L — With Liability" and should be deemed a binding acceptance of the claim with liability. The Appellate Division's decision notes that 12 NYCRR 300.37(c) "dispenses with the need for indexing where a claim is accepted".

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

 

Former Town Court Clerk charged with pocketing court fines and fees

State Comptroller Thomas P. DiNapoli, Wayne County District Attorney Michael Calarco, and the New York State Police announced the arrest of Eileen Steurrys, the former part time court clerk for the Town of Marion, for the alleged theft of $59,293 in court fines, fees and surcharges.*

“The defendant went to great lengths in her attempt to cover up her alleged theft of public funds.  Now, because of my office’s investigation and our partnership with state and local law enforcement, she faces the consequences of her actions,” DiNapoli said. “My thanks to District Attorney Calarco and the State Police for helping my office fight public corruption.”

New York State Police Acting Superintendent Steven A. Nigrelli said, “I commend the diligent work of our State Police members, along with our partners at the State Comptroller’s Office and District Attorney’s Office, for their hard work in putting an end to this deceitful plan. The arrest of this individual sends a strong message that we will not tolerate dishonest actions by those who use their position at the expense of the public. The State Police remains ready to assist in investigating and apprehending those individuals willing to engage in fraudulent acts.”

Michael D. Calarco, Wayne County District Attorney said, “I wish to thank and commend Mr. DiNapoli and the NYSP for their hard work and cooperation. This is a clear example of agencies from State and Local government working together to serve and protect the public.”

The former court clerk’s crimes were uncovered during an audit of the Town of Marion Court Fund, which found court fees were not always being deposited. A resulting investigation in collaboration with  Wayne County District Attorney Calarco and the State Police determined that, from 2016 to 2021, the defendant allegedly stole over $50,000, then altered court records and created phony receipts in an effort to conceal her crimes.

She admitted to the thefts when questioned by DiNapoli’s investigators and stated that she had altered and deleted court records when she learned of the impending audit before abruptly retiring as a part time court clerk.

Steurrys, 67, was charged Wednesday with grand larceny in the second degree, corrupting the government in the second degree, tampering with public records in the first degree and official misconduct. She was arraigned in Wayne County’s Court Arraignment Procedure before Judge Marsha Williams. She is due back in court on March 22nd.

N.B. The charges filed in this case are merely accusations and the defendant is presumed innocent unless and until proven guilty in a court of law.

* The practice of using a public office or position of trust for one's own gain or advantage is sometimes referred to as "jobbery". See https://www.merriam-webster.com/dictionary/jobbery. 

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Since taking office in 2007, New York State Comptroller DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. Allegations of fraud involving New York taxpayer funds may be reported by calling the toll-free Fraud Hotline at 1-888-672-4555, or by filing a complaint online at https://www.osc.state.ny.us/investigations, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.

 

NYPPL's public personnel law handbooks, listed below, are available for purchase from BookLocker.com, Inc.

 

The Discipline Book - A concise guide to disciplinary actions involving public officers and employees in New York State set out as an e-book. For more about this electronic handbook, click HERE. 

A Reasonable Disciplinary Penalty Under the Circumstances- The text of this publication focuses on determining an appropriate disciplinary penalty to be imposed on an employee in the public service in instances where the employee has been found guilty of misconduct or incompetence. For more information click HERE. 

Disability Benefits: payable to firefighters, police officers and other public sector personnel - an e-book focusing on retirement for disability under the NYS Employees' Retirement System, the NYS Teachers' Retirement System, General Municipal Law Sections 207-a/207-c and similar statutes providing benefits to employees injured both "on-the-job" and "off-the-job." For more information about this e-book click HERE. 

The Layoff, Preferred List and Reinstatement Manual -This e-book reviews the relevant laws, rules and regulations, and selected court and administrative decisions. Click HERE for more information.

 

Recent personnel disciplinary decisions handed down by NYC Office of Administrative Trials and Hearings Administrative Law Judges

Supervising OATH Administrative Law Judge Joan R. Salzman recommended a 15-day suspension for a steamfitter who was discourteous to his supervisor on two occasions. On one of these occasions, the employee made an anti-Latino remark to express his dissatisfaction with his supervisor. Although the employee was also Latino, his remark was offensive and unacceptable workplace behavior. Click HERE to access Judge Salzman's decision.

 

OATH Administrative Law Judge Christine Stecura recommended dismissing charges against a paramedic charged with stealing money from a patient. The paramedic’s partner alleged that he saw the paramedic take money from the patient’s apartment but the ALJ found that petitioner failed to corroborate the partner’s testimony. The patient’s ex-wife’s testimony that she did not see the paramedic take any money and did not notice any money missing from the apartment undermined petitioner’s case. Click HERE to access Judge Stecura's decision.

 

OATH Administrative Law Judge recommended dismissing charges against a sergeant charged with failing to issue a summons to a driver, unlawfully ordering a patrol officer to dispose of marijuana recovered during a traffic stop, and failing to keep an accurate account of marijuana recovery. The allegations against the sergeant were made by the patrol officer, who was being investigated about his conduct during the traffic stop. The patrol officer did not testify at trial. Instead, petitioner relied on the patrol officer’s unsworn statements to an investigator and presented the investigator’s testimony and report at trial. The ALJ found respondent’s testimony denying the allegations to be more credible than the hearsay statements attributed to the patrol officer. The investigator’s report was also found to be unreliable. Click HERE to access Judge McGeachy-Kuls' decision.

 

OATH Administrative Law Judge Orlando Rodriguez recommended termination of employment for an investigator charged with misconduct and incompetence. The Department proved that the employee persistently demonstrated an unwillingness to perform his job and was excessively absent. The ALJ also found that the employee was insubordinate to his supervisors by failing to respond to e-mails, refusing to attend conferences and trainings, sending discourteous e-mails, and being absent without leave. Click HERE to access Judge Rodriguez's decision.