Majority
Appeal from an order of the Supreme Court at Special Term (Connor, J.) entered August 15, 1983 in Albany County, which granted respondents’ motion for reargument and, upon reargument, adhered to its prior judgment granting petitioner’s application, in a proceeding pursuant to CPLR article 78, to direct respondents to recognize petitioner’s withdrawal from the ownership, interest and operation of Ramapo Manor Nursing Center. H Petitioner was one of four partners who owned and operated Ramapo Manor Nursing Center. On December 21, 1976, petitioner sold his interest in the partnership to Lawrence Kluger, one of the other partners. Since section 2801-a (subd 4, par [a]) of the Public Health Law requires approval by the Public Health Council for all changes in the operating partnership of a nursing home, it would appear that petitioner could not unilaterally divest himself of his interest in the nursing home. In apparent recognition of this, the sale agreement provided that it was conditioned on approval of the partnership change by the State. By letter dated December 29, 1976, petitioner requested that his name be removed from the operating certificate. The remaining partners concomitantly applied for a change in the certificate to reflect the withdrawal of petitioner from the partnership. Respondents have failed to act on petitioner’s application despite the fact that, from July of 1977 to February of 1982, petitioner has made at least seven formal, written demands that it do so. Respondents have taken the position that petitioner’s application could not be granted until the new operating entity has been approved (i.e., the other partners’ request to change the operating certificate has been granted). Since that has not yet occurred,
1 Special Term initially denied reargument but later amended its order to indicate that it granted reargument and adhered to its prior decision.
2 A nursing home is a “hospital” for the purposes of this section (Public Health Law, § 2801, subd 1; Matter of Sigety v Hynes, 38 NY2d 260 , 268, cert den sub nom. Kent Nursing Home v Office of Special State Prosecutor, 425 US 974 ).
3 One reason for the delay which appears in the record is the fact that the partner to whom petitioner sold his interest was under indictment for Medicaid fraud. However, this fact would only serve to excuse a small part of the delay since that criminal matter was completed by June 15, 1978, almost five years before this proceeding was commenced.
Cases cited
- Marine Midland Bank v. Fisher 85 AD2d 905 p. 919
- Hamptons Hospital & Medical Center, Inc. v. Moore 52 NY2d 88 at 96 p. 919
- Utica Cheese, Inc. v. Barber 49 NY2d 1028 p. 920