Waldbaum, Inc. v. Board of Assessors, 58 N.Y.2d 818 (1983)

Failure to file a note of issue within four years of commencing a proceeding to review a tax assessment, or to obtain a stipulation or court order extending the time for filing, mandates dismissal of the petition.

Summary

Waldbaum, Inc. challenged its tax assessment but failed to file a note of issue within the statutory four-year period or secure an extension. The New York Court of Appeals held that Real Property Tax Law § 718 requires mandatory dismissal in such cases. The court distinguished this statute from general rules regarding dismissal for neglect, emphasizing the legislative intent to enforce a rigid four-year limit to relieve court congestion and address fiscal problems arising from prolonged assessment review proceedings. Settlement discussions after the four-year deadline were deemed insufficient to revive the abandoned petition.

Facts

Waldbaum, Inc. commenced a proceeding in 1977 to challenge its real property tax assessment.

More than four years passed without Waldbaum filing a note of issue to bring the case to trial.

Waldbaum did not obtain a stipulation from the Board of Assessors or a court order extending the time to file the note of issue.

Settlement discussions occurred after the four-year period had already elapsed.

Procedural History

The initial petition was filed in 1977.

The lower courts presumably ruled against Waldbaum, leading to the appeal to the New York Court of Appeals.

The New York Court of Appeals affirmed the order dismissing the petition.

Issue(s)

Whether Real Property Tax Law § 718 mandates dismissal of a petition for review of a tax assessment when the petitioner fails to file a note of issue within four years of service of the petition and fails to obtain an extension of time for filing.

Holding

Yes, because section 718 of the Real Property Tax Law is phrased in mandatory terms, requiring dismissal if a note of issue is not filed within four years, and because the legislative history demonstrates an intent to rigidly apply the rule irrespective of circumstances.

Court’s Reasoning

The court based its decision on the plain language of Real Property Tax Law § 718, which states that unless a note of issue is filed within four years, “an order dismissing the petition shall be entered without notice and such order shall constitute a final adjudication of all issues raised in the proceeding” (emphasis in original).

The court emphasized the legislative intent behind the reenactment of the statute, stating it was designed “to restore the four year limitation for judicial proceedings to review tax assessments” and to ensure that “some action must be taken during the four-year period to indicate that the issues are still alive.” The purpose was to alleviate court congestion and reduce fiscal problems caused by the accumulation of review proceedings.

The court distinguished this case from Marco v. Sachs, which involved a different rule (former rule 302 of the Rules of Civil Practice, now CPLR 3404) concerning dismissal for neglect to prosecute. Unlike the rule in Marco, Section 718 was intended “to have the rule rigidly applied irrespective of any and all circumstances.”

The court also held that settlement discussions after the four-year period could not revive the petitioner’s right to proceed on the abandoned petition.