O'Brien v. Spitzer

Summary

The New York Court of Appeals held that a private attorney appointed as a referee in a mortgage foreclosure proceeding was an independent contractor rather than a state employee. Consequently, the attorney was not entitled to defense and indemnification from the State under Public Officers Law § 17. The court deferred to the Attorney General’s reasonable application of the employee and independent-contractor distinction and dismissed the petition.

Holdings

1. When applying the broad statutory terms 'employee' and 'independent contractor' to specific facts in determining eligibility for defense and indemnification, the Attorney General's reasonable determination is entitled to deference and should not be second-guessed by the courts.
2. A private lawyer appointed as a referee in a mortgage foreclosure proceeding was an independent contractor, not a state employee, and therefore was not entitled to defense and indemnification from the State under Public Officers Law § 17.

Questions Presented

1. Whether the Attorney General's determination that petitioner was an independent contractor rather than a state employee under Public Officers Law § 17 was entitled to judicial deference.
2. Whether a private lawyer appointed as a referee in a mortgage foreclosure proceeding qualifies as an employee entitled to state defense and indemnification under Public Officers Law § 17.

Disposition

reversed