49 N.Y.2d 986 (1980)
When a declaratory judgment action could have been resolved through a CPLR Article 78 proceeding, the shorter four-month statute of limitations for Article 78 proceedings applies.
Summary
The New York Court of Appeals addressed whether a declaratory judgment action challenging the Department of Education’s method of calculating state aid reimbursement was time-barred. The Board of Education sought review of the Department’s determination to limit reimbursement for facility acquisition costs by using cost allowances as outlined in Education Law § 3602(6). The Court of Appeals held that because the dispute could have been resolved in an Article 78 proceeding, the four-month statute of limitations governing such proceedings applied. As the action was commenced more than four months after the Board learned of the Department’s decision, the Court dismissed the action as time-barred.
Facts
The Board of Education sought state aid reimbursement for the cost of acquiring facilities from the State Dormitory Authority. The Department of Education determined it would limit the state aid reimbursement using a cost allowance scheme as per Education Law § 3602(6). On May 24, 1976, the Board of Education learned about the Department of Education’s determination to limit reimbursement at a meeting with officials from the Department’s Division of Finance. The first reimbursement payment reflecting the cost allowances was made on September 15, 1976.
Procedural History
The Board of Education commenced a declaratory judgment action challenging the Department of Education’s determination. The lower courts ruled in favor of the Board of Education. The Department of Education appealed to the New York Court of Appeals.
Issue(s)
Whether the Board of Education’s declaratory judgment action is time-barred because the dispute could have been resolved in a CPLR Article 78 proceeding, which has a four-month statute of limitations.
Holding
Yes, because when the resolution of rights sought in a declaratory judgment action could have been obtained in a CPLR Article 78 proceeding, the applicable statute of limitations is the four-month statute governing Article 78 proceedings.
Court’s Reasoning
The Court of Appeals reasoned that the nature of the action, rather than its form, determines the applicable statute of limitations. The court relied on the principle established in Solnick v. Whalen, 49 N.Y.2d 224, stating that “inasmuch as the resolution of rights sought by the parties could have been obtained in a CPLR article 78 proceeding, the applicable Statute of Limitations is the four-month statute governing proceedings under article 78.” The court determined that the Board of Education’s claim stemmed from the Department of Education’s determination regarding reimbursement, which could have been challenged through an Article 78 proceeding. The Board of Education was aware of the Department’s decision as early as May 24, 1976, and certainly by September 15, 1976, when the first reimbursement payment reflecting the cost allowances was made. Since the declaratory judgment action was commenced more than four months after this date, the Court held that the action was time-barred. The Court emphasized efficiency and preventing parties from circumventing shorter statutes of limitations by simply framing their claims as declaratory judgment actions when other, more specific remedies are available.