Town of Harrison v. County of Westchester, 13 N.Y.2d 876 (1963)
A municipality’s exclusive remedy to challenge a town’s correction of its assessment rolls lies within the specific provisions of the Westchester County Administrative Code, and the general post-judgment interest rate limitation in General Municipal Law § 3-a does not apply to proceedings to recover judgments based on unpaid taxes under the Westchester County Administrative Code.
Summary
The Town of Harrison corrected its assessment rolls, leading to a dispute with Westchester County. The County attempted to defend against the Town’s action to recover unpaid taxes by asserting illegality and irregularity in the assessment roll correction. The Court of Appeals held that the County was precluded from raising these defenses because its exclusive remedy was within the Westchester County Administrative Code. Further, the court found the County’s allegations of illegality meritless. Finally, the Court clarified that the General Municipal Law’s 3% post-judgment interest rate does not apply to actions for unpaid taxes under the Westchester County Administrative Code, allowing for a 12% rate as specified in the latter.
Facts
The Town of Harrison corrected its assessment rolls.
Westchester County subsequently challenged these corrections when the Town sought to recover unpaid taxes based on the corrected assessments.
The County asserted defenses of illegality and irregularity in the correction of the assessment rolls.
Procedural History
The lower court ruled against Westchester County.
The Appellate Division affirmed, holding that the defenses were without merit.
Westchester County appealed to the New York Court of Appeals.
Issue(s)
Whether Westchester County was precluded from asserting defenses of illegality and irregularity against the Town of Harrison’s correction of assessment rolls due to failing to plead them in its answer.
Whether the exclusive remedy for Westchester County to challenge the correction of the assessment rolls is found in section 557 of the Westchester County Administrative Code.
Whether section 3-a of the General Municipal Law, limiting post-judgment interest to 3%, applies to proceedings to recover judgments based upon unpaid taxes under the Westchester County Administrative Code.
Holding
No, the County is not precluded due to failing to plead the defenses, but because its exclusive remedy is in the Westchester County Administrative Code.
Yes, because the Westchester County Administrative Code provides the specific mechanism for challenging such corrections.
No, because section 3-a of the General Municipal Law does not apply to the present proceeding, allowing for post-judgment interest at the rate of 12% as authorized by the Westchester County Administrative Code.
Court’s Reasoning
The Court reasoned that the County’s defenses were procedurally barred, not by a failure to plead them, but because the Westchester County Administrative Code provides the exclusive avenue for challenging assessment roll corrections. Citing Lewis v. City of Lockport, 276 N.Y. 336 (1938) and Dun & Bradstreet v. City of New York, 276 N.Y. 198 (1937), the court reinforced the principle that statutory remedies must be followed when they exist. The Court found the County’s substantive claims of illegality and irregularity to be meritless, presenting no factual issues for trial. The Court then addressed the applicable interest rate, holding that the general 3% limitation in General Municipal Law § 3-a does not override the specific provisions in the Westchester County Administrative Code, which permits a 12% post-judgment interest rate for actions to recover unpaid taxes. This decision underscores the principle that specific statutes generally take precedence over general ones. The court explicitly adopted the views expressed in the dissenting memorandum at the Appellate Division level, further emphasizing the intent to allow the higher interest rate to apply in this particular case. The Court clearly states that the County is precluded from asserting defenses because “its exclusive remedy to challenge the correction is found in section 557 of the Westchester County Administrative Code”.