ISN'T THIS A GOVERNMENTAL FUNCTION?

In Jericho Water Dist. v. One Call Users Council, Inc., Jericho Water District (JWD) filed suit against One Call Users Council, Inc. (OCUCI) seeking a judge to find JWD wasn't obligated to contribute to the "one-call" system.

Before an excavation or demolition may begin, contractors must contact OCUCI, which affords notice to all utility (and other service) providers of any work to be performed in the immediate area of the latter's easements or installations. The participants then map out exactly where "pipes, cables, wires, and the like" are situated in order to prevent someone from excavating in those areas.

OCUCI is funded by its member operators who are statutorily required to join and pay the associated costs. However, since "municipalities" are exempt from remitting those fees, JWD -- a water district located in Oyster Bay, Long Island -- claimed it wasn't required to contribute to the system.

When the Nassau County Supreme Court disagreed, JWD appealed to the Appellate Division, Second Department, which reversed.

On appeal, the New York State Court of Appeals again reversed, finding the exemption inapplicable because JWD didn't exercise "governmental functions."

The outcome turned on the definition of the word "municipality." And since that term is narrowly defined, our state's highest court saw no reason to give it a broader application.

What a drip!

To download a copy of the Court of Appeals' decision, please use this link: Jericho Water Dist. v. One Call Users Council, Inc.