77 A.D.2d 802 | N.Y. App. Div. | 1980
Judgment unanimously reversed, without costs, petition reinstated, and matter remitted to Supreme Court, Monroe County, for further proceedings in accordance with the following memorandum. Petitioners applied for medical assistance in September, 1976. In determining the amount petitioners would have to "spend down” before receiving aid, the Monroe County Department of Social Services did not allow as a deduction from income petitioners’ work-related expenses. This was in accordance with policy mandated by the New York State Department of Social Services. Petitioners joined with others similarly situated and commenced a class action suit challenging this policy in Federal court. In September, 1977 the United States District Court for the Northern District of New York held that the New York policy concerning work-related expenses was contrary to Federal standards and ordered the Department of Social Services to allow such deductions retroactive to June 1, 1977, the date the complaint was filed in Federal court (Greklek v Toia, [77 CV-228, N.D.N.Y., Sept. 30, 1977], affd 565 F2d 1259, cert den sub nom. Blum v Toomey, 436 US 962). In November, 1977 petitioners requested that respondents conduct a fair hearing concerning whether petitioners’ benefits should be corrected retroactive to September, 1976, the date of their original application. In February, 1978, following a fair hearing, the Commissioner of Social Services issued a determination directing that petitioners’ assistance be recomputed retroactive only to June 1, 1977, stating that further retroactive relief was inappropriate in light of the Federal court decision. On March 20, 1978 petitioners commenced this CPLR article 78 proceeding to annul the commissioner’s determination insofar as it refused to direct recomputation retroactive to September 1, 1976. They asserted that 18 NYCRR 352.31 (e) (1), which provides for correction of underpayments for 12 months preceding the month in which such underpayments are discovered, applies and that the Federal court decision constitutes "discovery” of the error. Special Term dismissed the petition, holding that petitioners were barred from seeking such relief because they failed to request a fair hearing within 60 days of their original September, 1976 application, pursuant to section 135-a of the Social Services Law, which was then in effect. It held that the Department of Social Services granting of a fair hearing and its decision after the fair hearing did not waive its right to raise the failure to