Bender v. New York City Health and Hospitals Corp

In Bender v. New York City Health and Hospitals Corp. (38 N.Y.2d 662 [1976]), the petitioners raised the issue of whether or not the New York City Health and Hospitals Corporation should be estopped from asserting the affirmative defense of the claimant's failure to file a timely notice of claim. In Bender, the petitioners in a medical malpractice action filed a notice of claim with the City of New York but they failed to file a notice of claim with the New York City Health and Hospitals Corporation. Pursuant to a new statutory scheme, it became necessary for a party sustaining injury, allegedly attributable to the New York City Health and Hospitals Corporation, to file a verified notice of claim with the corporation prior to the commencement of the lawsuit. However, when the Corporation Counsel and the attorney for the New York City Health and Hospitals Corporation learned of the claim, they noticed a hearing and physical examination, but did not inform the petitioners that their notice had been filed with the wrong agency or that notice should have been served on the New York City Health and Hospitals Corporation. Petitioners subsequently served the complaint on the corporation, and the corporation relied on the affirmative defense of a failure to comply with the notice of claim provision. In striking the affirmative defense the Court of Appeals held: "We believe that where a governmental subdivision acts or comports itself wrongfully or negligently, inducing reliance by a party who is entitled to rely and who changes his position to his detriment or prejudice, that subdivision should be estopped from asserting a right or defense which it otherwise would have raised. The equitable bar to a defense may arise by virtue of positive acts, or omissions where there was a duty to act." (At 668.)