Heeran v. Long Is. Power Auth. (LIPA)Heeran v. Long Is. Power Auth. (LIPA)
Lead Opinion
In an action, inter alia, to recover damages for negligence, the defendant Long Island Power Authority (LIPA) appeals, and the defendant National Grid Electric Services, LLC, incorrectly sued herein as Keyspan Electric Services, LLC, separately appeals, from an order of the Supreme Court, Queens County (Siegal, J.), entered July 9, 2014, which denied their joint motion pursuant to CPLR 3211 (a) (7) to dismiss the amended complaint insofar as asserted against them.
Ordered that the order is affirmed, with costs.
The plaintiffs, who sustained property damage in the wake of Hurricane Sandy, seek to hold the defendants responsible in negligence. According to the amended complaint, the plaintiffs were owners of real and personal property on the Rockaway Peninsula in Queens. They also were customers of the defend
On October 26, 2012, as Hurricane Sandy approached, the Governor of the State of New York declared a “State Disaster Emergency” (hereinafter the Declaration of Emergency). Two days later, the Mayor of the City of New York issued a “Proclamation of a State of Emergency and Evacuation Order” (hereinafter the Evacuation Order) with respect to the evacuation of “Zone A,” which included the Rockaway Peninsula. The plaintiffs allege that LIPA and NGES (hereinafter together the appellants) should have foreseen, among other things, that salt water from the storm surge would come into contact with electrical transmission lines, that fires would result if the electrical transmission lines were live, and that the fires would cause property damage. The plaintiffs allege that salt water from the storm surge indeed came into contact with live transmission lines, that fires resulted, and that the fires damaged their property. The plaintiffs allege that in light of what was foreseeable, the appellants were negligent in their preparation for and reaction to the hurricane, including, in particular, their failure to de-energize the Rockaway Peninsula.
The appellants jointly moved pursuant to CPLR 3211 (a) (7) to dismiss the amended complaint insofar as asserted against them. They contended that LIPA is immune from liability under the doctrine of governmental function immunity because its response to the hurricane — most specifically its decision not to de-energize the Rockaway Peninsula after the Declaration of Emergency and the Evacuation Order were issued — amounted to the performance of a discretionary governmental action. They further insisted that NGES likewise was entitled to the benefit of that doctrine because, under NGES’s agreement with LIPA, NGES was providing an essential governmental function on behalf of LIPA. The Supreme Court denied the motion. LIPA and NGES appeal.
In determining a motion to dismiss a complaint for failure to state a cause of action {see CPLR 3211 [a] [7]), the court must read the complaint liberally and assume that the plaintiffs’ allegations are true. If the allegations, as supplemented by any affidavits, fit within any cognizable legal theory, the court must deny the motion to dismiss (see Leon v Martinez,
Governmental entities perform a variety of functions. Some of these functions are purely proprietary, others are purely governmental, and others have characteristics of both. The distinction between proprietary and governmental functions is important because the governmental function immunity doctrine applies, as its name suggests, only to the actions of a governmental entity that are properly categorized as governmental functions (see Sebastian v State of New York,
“[(Quintessential governmental functions” include police and fire protection; these functions are “acts . . . ‘undertaken for the protection and safety of the public pursuant to the general police powers’” (Applewhite v Accuhealth, Inc.,
In New York, electric utilities have been “traditionally private enterprises” (Sebastian v State of New York,
We conclude that under the analysis long utilized by the Court of Appeals (see Applewhite v Accuhealth, Inc.,
Our dissenting colleague posits that a “governmental entity’s preparation for a natural disaster or for some other external emergency, and its response during such an event, are generally deemed to be governmental functions.” The underlying premise of this assertion is that the governmental entity is acting in a dual role. When the entity is acting in a dual role, its activities may implicate a “continuum of responsibility” ranging from the most purely proprietary to the most complex governmental (Miller v State of New York,
We reject the premise that the appellants were acting in a dual role in operating as an electrical utility. One example of such a dual role is a governmental entity’s ownership of property. When a governmental entity acts as a landlord, it generally has the same tort liability as a private landlord (see Miller v State of New York,
■ On the other hand, a governmental property owner’s decisions as to the deployment of police and its response to terrorist threats is governmental, rather than proprietary (see Matter of World Trade Ctr. Bombing Litig.,
By contrast, the functions of electric utilities in the ordinary course of providing electricity and in responding adequately to a hurricane are both part of the proprietary core functions of their business. True, here, the appellants’ actions, because of the size of LIPA’s customer base, affected many people and many businesses. True, too, LIPA’s response to the hurricane may have involved complex considerations. But every private electric utility in the region faced the same hurricane. For example, Consolidated Edison, Inc. (hereinafter Con Ed), which
LIPA relies on legislation declaring that it exercises “essential governmental and public powers” (Public Authorities Law § 1020-c) and “an essential governmental function” (Public Authorities Law § 1020-p [1]). That designation, however, is present in many laws creating public authorities, many of which may be regarded as engaging in proprietary activities in furtherance of their core purpose (see e.g. Public Authorities Law §§ 902 [7] [Long Island Market Authority]; 1264 [2] [Metropolitan Transportation Authority]; 1427 [2] [White Plains Parking Authority]; 1942 [5] [Upper Mohawk Valley Memorial Auditorium Authority]; 2052-c [5] [Oneida County Sports Facility Authority]; 2502 [New York City Sports Authority], 2751 [6] [Monroe County Airport Authority]; 3301 [5] [Westchester County Health Care Corporation]; 3551 [8] [Roswell Park Cancer Institute Corporation]). The legislative declaration that a governmental entity is engaging in “an essential government function” is relevant in other legal contexts (see e.g. Matter of Long Is. Power Auth. Hurricane Sandy Litig.,
Finally, since NGES’s claim of governmental immunity presupposes that LIPA is entitled to governmental immunity, our conclusion that LIPA is not entitled to immunity necessarily rejects NGES’s claim of immunity as well.
The appellants’ remaining contentions are without merit or need not be addressed in light of our determination.
Accordingly, the Supreme Court properly denied the joint motion of LIPA and NGES pursuant to CPLR 3211 (a) (7) to dismiss the amended complaint insofar as asserted against them.
Dissenting Opinion
dissents, and votes to reverse the order appealed from, on the law, and grant the joint motion of the defendants Long Island Power Authority (LIPA) and National Grid Electric Services, LLC, incorrectly sued herein as Keyspan Electric Services, LLC, pursuant to CPLR 3211 (a) (7) to dismiss the amended complaint insofar as asserted against them, with the following memorandum: When properly invoked, the defense of governmental immunity shields a public entity from liability for its negligence. Although the application of this doctrine may yield harsh results, the courts of this state are not vested with the discretionary authority to pick and choose when to apply it. Rather, we are bound to apply governmental immunity in accordance with the legal principles set forth by the Court of Appeals. In this case, the Supreme Court applied the law of governmental immunity in a manner that conflicts with those precedents. Accordingly, I vote to reverse the order of the Supreme Court, and I must respectfully dissent from my colleagues’ determination.
The plaintiffs were owners of real and personal property located on the Rockaway Peninsula in Queens. The plaintiffs commenced this action against, among others, the Long Island Power Authority (LIPA) and National Grid Electric Services, LLC, incorrectly sued herein as Keyspan Electric Services, LLC (hereinafter NGES) to recover damages for, inter alia, negligence.
The amended complaint alleged that LIPA was “a non-profit municipal electric provider” that owned and operated an electric transmission and distribution system serving customers on the Rockaway Peninsula, including the plaintiffs. The amended complaint alleged that NGES was a private entity that had contracted with LIPA to operate LIPA’s electrical system.
The amended complaint alleged that in October 2012, a storm system identified as Hurricane Sandy began to move towards the New York City metropolitan area. The storm system became a Category One hurricane on October 24, 2012, and strengthened to a Category Two hurricane at its peak intensity. As the storm system made its way up the Atlantic coastline, it grew in size to nearly 2,000 miles across, and the National Weather Service issued high wind and flood watches for New Jersey, the City of New York, and Long Island.
The amended complaint alleged that on October 26, 2012, Governor Andrew Cuomo declared a state of emergency for all of New York’s 62 counties in preparation for the impact of the hurricane. On October 28, 2012, the City of New York issued “a
The amended complaint alleged that LIPA and NGES “had a duty to maintain the electric transmission and distribution system . . . in a reasonably safe and suitable condition.” The amended complaint also alleged that LIPA and NGES had “the duty . . . to . . . ensure the safety ... of the property of the general public and . . . the property of those who were supplied electricity by . . . LIPA.” The amended complaint alleged that LIPA and NGES “were negligent in their duty to maintain their electrical lines in a reasonably safe condition.” More particularly, the plaintiffs asserted that LIPA and NGES were negligent in failing to de-energize the Rockaway Peninsula after the Mandatory Evacuation Order was issued since “it was foreseeable that failing to de-energize would cause fire and electrical hazards posed by wiring and circuits coming into contact with flood water.” The plaintiffs also asserted that LIPA and NGES were negligent in failing to “de-energize or repair arcing and downed electrical lines” within a reasonable time after it received notice that such conditions had arisen during the course of the storm. The plaintiffs contended that, in light of the alleged negligence, they were entitled to recover from LIPA and NGES the value of property that had been damaged during the course of the storm.
LIPA and NGES (hereinafter together the moving defendants) jointly moved pursuant to CPLR 3211 (a) (7) to dismiss the amended complaint insofar as asserted against them. They argued that they were entitled to governmental immunity since they were performing a governmental function in determining how to prepare for, and respond to, the emergency situation that was created by the unprecedented storm.
The plaintiffs opposed the motion, arguing, inter alia, that the defense of governmental immunity was not applicable in this case. In this regard, the plaintiffs contended that the operation of an electrical utility was “a historically proprietary function,” and that the moving defendants “at all times . . . acted as a utility and that their functioning was proprietary rather than governmental.” The plaintiffs also contended that,
In the order appealed from, the Supreme Court denied the moving defendants’ motion. The court stated: “[T]he evidence before this Court shows that, traditionally, electricity in New York has been provided by private entities, with public entities like LIPA being the exception rather than the rule.” The court determined that “providing electricity to consumers [was] a proprietary act because electricity has traditionally been supplied by the private sector.” Accordingly, the court concluded that since LIPA and NGES were engaged in the proprietary act of transmitting electricity, they were not entitled to assert the defense of governmental immunity. The court also concluded that NGES was unable to assert governmental immunity for the additional reason that “private contractors that perform work for government entities are liable for their own negligence” and “may not use governmental immunity as a defense to a negligence claim.”
The moving defendants appeal from the Supreme Court’s order. In my view, the court erred as a matter of law in the way it applied the principles of governmental immunity to the facts of this case, and the order should be reversed.
The Court of Appeals has stated that “[although the State long ago waived sovereign immunity on behalf of itself and its municipal subdivisions, the common-law doctrine of governmental immunity continues to shield public entities from liability for discretionary actions taken during the performance of governmental functions” (Valdez v City of New York,
The Court of Appeals has set forth the framework to be employed when applying the doctrine of governmental im
A governmental entity performs a purely proprietary role when its “activities essentially substitute for or supplement traditionally private enterprises” (Sebastian v State of New York,
In contrast, a governmental entity will be deemed to have been engaged in a governmental function when its acts are “undertaken for the protection and safety of the public” (Sebastian v State of New York,
In considering whether the functions of a public entity are proprietary or governmental in nature, the Court of Appeals has eschewed the application of a rigid dichotomy in favor of “a
In this case, there is little difficulty in reaching the conclusion that the provision of electricity has traditionally been a proprietary enterprise undertaken by private entities (see generally Prosser & Keeton, Torts § 131 at 1053 [5th ed 1984]). The case law of this state is replete with instances where a private electric company has been subject to liability under ordinary rules of negligence (see e.g. Miner v Long Is. Light. Co.,
However, the fact that the moving defendants were generally engaged in a traditionally proprietary endeavor does not conclude the analysis. The Court of Appeals has recognized that the varying nature of activities engaged in by public entities “may sometimes partake of both proprietary and governmental aspects” (Sebastian v State of New York,
Accordingly, the Court of Appeals has repeatedly stressed that “in light of the fact that the varied functions of a governmental entity can be interspersed with both governmental and proprietary elements, the determination of the primary capacity under which a governmental agency was acting turns solely on the acts or omissions claimed to have caused the injury” (Matter of World Trade Ctr. Bombing Litig.,
Here, although the moving defendants were “engaged generally in proprietary activity” as providers of electrical power (Weiner v Metropolitan Transp. Auth.,
As the amended complaint reflects, the plaintiffs do not take the position that the electric transmission and distribution system was inherently dangerous. Instead, the plaintiffs claim that the system was rendered dangerous by the presence of an external threat. Accordingly, “the specific act or omission out of which the injury is claimed to have arisen” is not related to the normal day-to-day operation of the system, but rather, the failure to deviate from such normal operations given the extraordinary circumstances occasioned by Hurricane Sandy (Weiner v Metropolitan Transp. Auth.,
A governmental entity’s preparation for a natural disaster or for some other external emergency, and its response during
Moreover, as the Court of Appeals has repeatedly recognized, “ ‘complex measures of safety and security for a greater area and populace’ is more indicative of the performance of a governmental function” (Matter of World Trade Ctr. Bombing Litig.,
Furthermore, a finding that the negligence alleged here relates to a governmental function is consistent with the policy goals underlying the doctrine of governmental immunity. The doctrine seeks to foster the ability of entities performing governmental functions to make “decisions that involve the balancing of burdens and risks, competing interests, and allocation of resources” (id. at 454). These discretionary decisions, which are often made, as here, while the public at large
The plaintiffs nevertheless contend that even if LIPA was entitled to governmental immunity, NGES could not assert such a defense since it was a private, for-profit corporation and not a governmental entity. This contention is without merit. The negligent acts and omissions attributed to NGES in the amended complaint relate to its performance of an essential governmental function for LIPA in responding to the crisis created by Hurricane Sandy. Accordingly, under the circumstances, NGES is not precluded from asserting the defense of governmental immunity by virtue of its status as a private contractor (see Altro v Conrail,
In sum, the gravamen of the plaintiffs’ case is that the moving defendants were negligent in preparing for, and responding to, a natural disaster. As such, the injury-causing acts or omissions alleged in the amended complaint pertain to governmental functions. The Supreme Court’s determination to the contrary was error as a matter of law. Furthermore, the plaintiffs do not allege the existence of a special duty that could render the moving defendants liable for the performance of this governmental function. Construing the amended complaint liberally, accepting the facts alleged in it as true, and affording the plaintiffs the benefit of every possible favorable inference, as we are required to do, the plaintiffs’ allegations fail to state a cause of action against the moving defendants. Accordingly, the Supreme Court should have granted the moving defendants’ motion pursuant to CPLR 3211 (a) (7) to dismiss the amended complaint insofar as asserted against them.