New York Law Review

Tag: Koerner v. Board of Education

  • Koerner v. Board of Education, 50 N.Y.2d 834 (1980): Statute of Limitations for Declaratory Judgment Actions

    Koerner v. Board of Education, 50 N.Y.2d 834 (1980)

    When a declaratory judgment action could have been resolved through a CPLR Article 78 proceeding, the four-month statute of limitations applicable to Article 78 proceedings governs.

    Summary

    The New York Court of Appeals held that a declaratory judgment action challenging the Department of Education’s method of calculating state aid reimbursement was time-barred. Even though the action was framed as a declaratory judgment, the court reasoned that because the plaintiffs could have sought the same relief through a CPLR Article 78 proceeding, the shorter four-month statute of limitations for such proceedings applied. The plaintiffs were notified of the Department’s decision in May 1976, and no later than September 1976 when the first reduced payment was made, so an action commenced ten months later was untimely.

    Facts

    The plaintiffs sought review of the Department of Education’s determination that limited State aid reimbursement for the cost of acquiring facilities from the State Dormitory Authority. The Department used a cost allowance scheme set forth in subdivision 6 of section 3602 of the Education Law to limit reimbursement. Plaintiffs learned of the Department of Education’s determination to limit reimbursement by utilizing cost allowances on May 24, 1976, at a meeting with officials of the Education Department’s division of finance. The first reimbursement payment reflecting the cost allowances was made on September 15, 1976.

    Procedural History

    The plaintiffs commenced an action for declaratory judgment. The lower courts’ decisions are not specified in the Court of Appeals opinion. The Court of Appeals reversed the lower court’s order and dismissed the complaint.

    Issue(s)

    Whether the four-month statute of limitations applicable to CPLR Article 78 proceedings bars a declaratory judgment action when the rights sought to be resolved in the declaratory judgment action could have been obtained in an Article 78 proceeding.

    Holding

    Yes, because when a declaratory judgment action could have been brought as a CPLR Article 78 proceeding, the four-month statute of limitations governing Article 78 proceedings applies, and the action is time-barred.

    Court’s Reasoning

    The Court of Appeals relied on its prior holding in Solnick v. Whalen, 49 N.Y.2d 224, stating that “although this action is one for a declaratory judgment, 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 reasoned that the plaintiffs were aware of the Department of Education’s determination to limit reimbursement by May 24, 1976, and certainly by September 15, 1976, when the first reimbursement payment reflecting the cost allowances was made. Because the action was commenced some ten months after this date, it was time-barred. The court did not delve into policy considerations beyond applying the established precedent from Solnick. There were no dissenting or concurring opinions noted in the memorandum decision.