1 N.Y.2d 374 | NY | 1956
Lead Opinion
The question is as to the validity of section 361-b of the Public Authorities Law, enacted in 1954, which confers exclusive jurisdiction upon the Court of Claims to hear and determine all claims against the New York State Thruway Authority for alleged torts or breaches of contract. The Thruway Authority is “ a body corporate and politic constituting a public corporation ’’ (Public Authorities Law, § 352) which performs part of the work of the State Government in building and maintaining a highway. It cannot be doubted that this Authority is an arm or agency of the State. The closeness of its relationship (cf. Glassman v. Glassman, 309 N. Y. 436, 441) to the State is illustrated by these situations among others: its members are appointed by the Governor with the approval of the Senate, its statutory purposes are declared to be “ in all respects for the benefit of the people of the state ’ ’, its functions are statutorily declared to be “ governmental ’ ’, its real property is held in the name of the State, the State advanced the money for constructing the Thruway, the State’s Public Works Department designed and supervised the construction work, the legal services are performed by the Attorney-General, the Authority must annually report to the Governor and Legislature, its funds are held by the State Comptroller, its bonds are guaranteed by the State pursuant to the vote of the People, and, eventually, the Authority’s properties will revert to the State itself (see Public Authorities Law, art. 2, tit. 9; Highway Law, art. XII-A). Since the State as sovereign may assert, waive, or condition at will immunity from suit for itself and its agents (see Matter of Brown v. Board of Trustees of Hamptonburg School Dist., 303 N. Y. 484, 489), the Legislature could in creating the Thruway Authority have refused to waive
Prior to 1950, the Court of Claims was not a constitutional court but was one of a series of boards and tribunals set up successively by various legislative acts to hear and audit various ldnds of claims against the State (see People ex rel. Swift v. Luce, 204 N. Y. 478). In the judiciary article submitted to the People by the 1938 Constitutional Convention but rejected by the People, there was a provision substantially like the present section 23 of article VI. The “ abstract ” thereof submitted to the voters at the 1938 election stated the purpose to be as follows: “ to continue the court of claims substantially as at present, but with the status of a constitutional court of record, the judges thereof to have the same qualifications and be subject to the same restrictions as justices of the supreme court ” (see p. 95 of document issued by the Secretary of State, Sept. 8, 1938). Then, by the 1949 election and effective January, 1950, there was approved by the People the present section 23 of article VT of the Constitution which continued the Court of Claims as a court of record, fixed the number, method of appointment, terms, qualifications, etc., of the judges and contained this sentence: ‘1 The court shall have jurisdiction to hear and determine claims against the state or by the state against the claimant or between conflicting claimants as the legislature may provide ”. With that proposed amendment there was submitted to the People an “ abstract ” thereof as follows: “ The purpose and effect of this proposed amendment is to make the Court of Claims a constitutional court and thereby deprive the legislature of its present power to abolish that court at any time. The court now hears and determines claims against the State pursuant to legislative authority and direction. This amendment would incorporate that statutory authority and direction into the constitution.” We have examined various parts of the records of the 1938 Constitutional
It is significant that as far back as 1939, by section 1306-a of the Public Authorities Law, the Legislature gave the Court of Claims exclusive jurisdiction as to tort claims against the Saratoga Springs Authority. The Law Revision Commission in its 1939 report recommended that, if adopted, this provision should become part of the Public Authorities Law and there is nothing to indicate that anyone at any time doubted the constitutionality of that statute or so contended in any suit. Much more recently, in 1955 (see Public Authorities Law, § 163-a), the Legislature gave the Court of Claims exclusive jurisdiction to hear tort and contract claims against the Jones Beach State Parkway Authority. We are informed that the Court of Claims has heard and decided a large number of suits against the Jones Beach State Parkway Authority, apparently without anybody
Thus, the New York Legislature took these successive actions:
In 1939 it gave the Court of Claims jurisdiction over the Saratoga Springs Authority.
In 1948 it passed in its present form section 23 of article VT of the New York State Constitution (supra).
In 1949 it passed section 23 of article VT for the second time.
In 1954 it gave the Court of Claims jurisdiction over the Jones Beach State Parkway Authority.
In 1955 it gave the Court of Claims jurisdiction over respondent Thruway Authority.
Statutes are presumed to be constitutional, Legislatures are presumed to know what statutes are on the books and what is intended by constitutional amendments approved by the Legislature itself. Is it conceivable that the Legislature which enacted section 23 of article VT in 1948, and again in 1949, intended thereby to invalidate its own 1939 Saratoga Springs Act? And is it possible that the same Legislature intended in 1948 and 1949 to deprive the Court of Claims of jurisdiction over State ‘ ‘ Authorities ’ ’ and then turned around in 1954 and 1955 and solemnly conferred on that court jurisdiction over two more such Authorities?
It is clear, of course, that this is entirely different from the question in Malone v. State of New York (1 N Y 2d 837, decided herewith). In Malone, the question is as to whether the State as such was liable under the doctrine of respondeat superior for torts of a water-regulating district.
The judgment should be affirmed, with costs.
Dissenting Opinion
(dissenting). This is a negligence action in the Supreme Court to recover damages for personal injuries against the New York State Thruway Authority, which has moved to dismiss the complaint upon the ground that on the face of the complaint the Supreme Court lacks jurisdiction of the subject matter of the action (Rules Civ. Prac., rule 106). Its contention is that section 361-b of the Public Authorities Law, effective April 7, 1954, confers exclusive jurisdiction of this kind of litigation upon the Court of Claims. Prior to the enactment of this section, the State took a different view (Strang v. State of New York, 206 Misc. 734) by successfully moving to dismiss a proceeding for similar relief in the Court
“ We regard the Saratoga Springs Authority as an agency exercising governmental powers, and the performance of its functions is not so closely allied or held in such intimate relation to the health activities carried on by the State itself as to make its work a part of the health work carried on directly by the State. The State did not ‘ employ ’ the Authority to that end. (Paige v. State of New York, supra, p. 356.) The State is not liable for the torts of the Authority; and if an actionable cause exists in favor of the plaintiff it may be
The charges of invalidity stem from the constitutional limitation of the jurisdiction of the Court of Claims to situations where a claim is made against the State, contrasted with the independent entity of the Thruway Authority as a public corporation, and the direction in section 361-b that 1 ‘ All awards and judgments arising from such claims shall be paid out of moneys of the authority. ’ ’ The Thruway Authority, to be sure, conducts a governmental function of the State in the construction and maintenance of a highway (People ex rel. Van Keuren v. Board of Town Auditors, 74 N. Y. 310). The State itself could have performed that function through the instrumentality of an agency acting in its behalf (Maltby v. County of Westchester, 267 N. Y. 375; Paige v. State of New York, 269 N. Y. 352; Pauchogue Land Corp. v. State Park Comm., 243 N. Y. 15; Conklin v. Palisades Interstate Park Comm., 282 App. Div. 728). We disagree with the majority opinion that this is what the Legislature did in case of the Thruway Authority. The Legislature has a choice in the selection of the kind of agency or authority which it creates for the performance of governmental functions. It can be a mere commission or alter ego of the State, which transacts the business at hand in the same manner as though it were performed by any officer or employee of the State with the consequence that, if governmental immunity is waived, the State is liable under the rule of respondeat superior; or it may set up an authority having an independent status as a public corporation. By special act, the Legislature has created some forty-five different Authorities under section 5 of article X of the Constitution, which provides that “ No public corporation (other than a county, city, town, village, school district or fire district or an improvement district established in a town
We are confronted, therefore, with a public corporation having an independent legal entity and status of its own, not a mere agent of the State as was the ease in Maltby v. County of Westchester (supra); Paige v. State of New York (supra); Pauchogue Land Corp. v. State Park Comm, (supra); Conklin v. Palisades Interstate Park Comm. (supra). It is a separate entity resembling the Saratoga Springs Authority. The State has delegated governmental power to the Thruway Authority, to be exercised by it as an independent public corporation, for the performance of a State function, “as does a city”. (Pantess v. Saratoga Springs Auth., supra, p. 428.) The parallel of this public corporation with counties, cities, towns, villages, school districts, fire districts or improvement districts is recognized in section 5 of article X of the Constitution. Like them, the Thruway Authority is invested by statute with “ performing a governmental function in carrying out its corporate purpose and in exercising the power granted by this title.” (Public Authorities Law, § 353.)
If the Court of Claims can be vested with jurisdiction over causes of action sounding in tort against the Authority for the reason that it performs a governmental, function, so, also, could it be authorized exclusively to hear and determine similar causes of action against cities, counties, towns, villages, school districts, fire districts or improvement districts which also perform governmental functions of the State (cf. N. Y. Const., art. X, § 5).
The question in this case is whether, without impairing the independent corporate status of the Thruway Authority, and without imposing liability for tort claims upon the State itself,
Regardless of whatever power the Legislature may have to waive governmental immunity on condition that tort claims be prosecuted in the Court of Claims, unless the claims are against the State, payable from its funds, section 23 of article VI of the Constitution would be violated by granting jurisdiction to the Court of Claims over causes of action that are not against the State but are against these independent public corporations.
The exigencies of government have caused public authorities performing a wide variety of functions to increase and multiply in recent years. They might as well not be created if their separate, corporate existences are to be overridden whenever it is convenient to do so. We think that it was not the intention of the Legislature or of the Constitution to establish public authorities in name only, having the powers but lacking the status and responsibilities of independent corporate entities. In that event their standing would be undermined and their usefulness impaired.
The judgment appealed from should be reversed, and defendant’s motion denied with costs in all courts.
Conway, Ch. J., Dye and Fuld, JJ., concur with Desmond, J.; Van Vooehis, J., dissents in an opinion in which Bubke, J., concurs; Feoessel, J., taking no part.
Judgment affirmed.