Opinion
Decided February 16, 1999
Appeals, by permission fo the Court of Appeals, from an order of the Appellate Division of the Supreme Court in the Third Judicial Department, entered March 19, 1998, which affirmed a judgment of the Supreme Court (Mary O. Donohue, J.), entered in Albany County in a proceeding pursuant to CPLR article 78, granting a motion by respondent New York State Department of Audit and Control to dismiss the petition to vacate a notice of environmental lien filed against petitioner's property pursuant to Navigation Law § 181-a.
Matter of Art-Tex Petroleum v New York State Dept. of Audit Control, 248 AD2d 901, affirmed.
Richard I. Cantor, for appellant.
Lisa S. Kwong, for respondents.
MEMORANDUM:
The order of the Appellate Division should be affirmed, with costs.
The courts below properly held that petitioner's CPLR article 78 proceeding to annul and vacate an environmental lien on petitioner's land in Dutchess County, filed pursuant to Navigation Law § 181-a, should be dismissed on the ground that another adequate remedy at law was available.
At all relevant times, the subject property was operated as a gasoline station. In a 1993 agreement with petitioner, a third party leased the station and purchased the pumps, fuel lines, tanks and related fixtures for operation of the station. In 1994, the State Department of Environmental Conservation notified petitioner that a petroleum discharge had occurred at its property and that petitioner was liable for the clean-up and removal of the discharge under Navigation Law § 181. When petitioner failed to undertake the clean-up, the State Environmental Protection and Spill Compensation Fund expended over $143,000 in clean-up and removal costs. Thereafter, the Fund filed the environmental lien against petitioner's property for those expenditures, and the State commenced a plenary action for reimbursement, pursuant to Navigation Law § 181.
Petitioner brought this CPLR article 78 proceeding to vacate and annul the lien. Its contention was that, having transferred all control of the contaminated property as well as ownership of the tanks, pumps and remaining fixtures of the gasoline station's operating system to third parties, it was not a discharger liable for the clean-up and its property was not subject to a lien (see, Navigation Law §§ 172, 181; see also, id., § 181-a[1][a] [environmental lien may be filed upon property whose owner is a person liable under section 181]).
Dismissal of the petition was correct. A CPLR article 78 proceeding does not lie when another adequate remedy at law is available (see, CPLR 7801; Matter of Morgenthau v. Roberts, 65 N.Y.2d 749, 751; Matter of Campbell Painting Corp. v. Reid, 48 Misc.2d 544, 545-546, affd 26 A.D.2d 992, affd 20 N.Y.2d 370). Lien Law article 3, section 59, gives petitioner a statutory remedy to effect the vacatur of the lien (see, Navigation Law § 181-d; see also, Matter of Selwyn Realty Corp., 184 App. Div. 355, 358, affd 224 N.Y. 559). Additionally, in the State's pending plenary civil action to recover clean-up costs, petitioner has the opportunity to dispute its classification as an entity liable for the discharge, a necessary predicate to validity of the lien. Thus, under the circumstances presented here, it cannot be said that petitioner lacks an alternative adequate remedy at law.
Thus, it is unnecessary to address the Appellate Division's alternative ground for affirming dismissal of the petition, that petitioner's ownership status was itself a sufficient basis upon which to impose liability for the clean-up costs of the petroleum discharge under Navigation Law § 181(1).
Order affirmed, with costs, in a memorandum.
Chief Judge Kaye and Judges Bellacosa, Smith, Levine, Ciparick and Wesley concur. Judge Rosenblatt took no part.