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Murtha v. Incorporated Village of Island Park

Appellate Division of the Supreme Court of New York, Second Department
Mar 28, 1994
202 A.D.2d 650 (N.Y. App. Div. 1994)

Opinion

March 28, 1994

Appeal from the Supreme Court, Nassau County (Molloy, J.).


Ordered that the order and judgment is affirmed, with costs.

In a taxpayers' action pursuant to General Municipal Law § 51 under the theory presented, the plaintiffs must plead and prove that "the acts complained of are fraudulent, or a waste of public property in the sense that they represent a use of public property or funds for entirely illegal purposes" (Mesivta of Forest Hills Inst. v. City of New York, 58 N.Y.2d 1014, 1016, quoting Kaskel v. Impellitteri, 306 N.Y. 73, 79, cert denied 347 U.S. 934; see also, Korn v. Gulotta, 72 N.Y.2d 363). Although the statute itself is written in the disjunctive, apparently permitting a suit to prevent either an illegal act or waste, the controlling cases interpreting the statute have required that both elements be present (see, Korn v. Gulotta, supra; Kadish v Roosevelt Raceway Assocs., 183 A.D.2d 874; Starburst Realty Corp. v. City of New York, 125 A.D.2d 148). However, "waste" is not interpreted in a strict sense and can be any illegal act which imperils the public interest, is calculated to work a public injury, or will produce a public mischief (see, Korn v. Gulotta, supra).

Here, the plaintiffs argue that the named defendants, with the exception of the Village of Island Park, are personally liable for certain legal bills paid by the village on their behalf in relation to an investigation into the village's disbursements of funds from the United States Department of Housing and Urban Development. The plaintiffs argue that the village's payment of the legal fees was ultra vires and, therefore, illegal, because the law firm at issue, Axelrod, Cornachio Famighetti, was engaged and rendered services before the village passed Local Laws, 1990, No. 1 of Village of Island Park, which authorized such action. However, the plaintiffs fail to address the defendants' unrebutted assertion (which is supported by documentary evidence) that the law firm was engaged pursuant to a pre-engagement resolution passed June 15, 1989, not pursuant to Local Laws, 1990, No. 1 of Village of Island Park. Thus, because the law firm was engaged and paid pursuant to a legislative resolution, no ultra vires act took place (see, Corning v Village of Laurel Hollow, 48 N.Y.2d 348; Cahn v. Town of Huntington, 29 N.Y.2d 451; Shamon v. Lattimore, 115 A.D.2d 326). Even if we assume that an allegation of waste could be inferred from the complaint, the plaintiffs have failed to allege an illegal or ultra vires act. Accordingly, the defendants were properly awarded summary judgment and the complaint was properly dismissed.

In addition, a municipal official, as here, may only be held personally liable for a debt if there is fraud, collusion, bad faith amounting to fraud, or acts motivated by personal gain (see, Stewart v. Scheinert, 47 N.Y.2d 826; Kittinger v. Buffalo Traction Co., 160 N.Y. 377; Daly v. Haight, 170 App. Div. 469, affd 224 N.Y. 726; Tinston v. City of New York, 17 A.D.2d 311, affd 13 N.Y.2d 850). Here, no such allegations were made.

Finally, because all legal expenses, other than those here, were incurred after the passage of Local Laws, 1990, No. 1 of the Village of Island Park, there is no basis for injunctive relief. Bracken, J.P., O'Brien, Pizzuto and Altman, JJ., concur.


Summaries of

Murtha v. Incorporated Village of Island Park

Appellate Division of the Supreme Court of New York, Second Department
Mar 28, 1994
202 A.D.2d 650 (N.Y. App. Div. 1994)
Case details for

Murtha v. Incorporated Village of Island Park

Case Details

Full title:EMIL MURTHA et al., Appellants, v. INCORPORATED VILLAGE OF ISLAND PARK et…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Mar 28, 1994

Citations

202 A.D.2d 650 (N.Y. App. Div. 1994)
609 N.Y.S.2d 315

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