A.C. Transp. v. Bd. of Educ. of the City of N.Y

In A.C. Transp. v. Bd. of Educ. of the City of N.Y. (253 AD2d 330, 687 NYS2d 1 [1st Dept 1999], lv denied 93 NY2d 808, 713 NE2d 417, 691 NYS2d 382 [1999]), the plaintiffs' claim did not arise from money due under a contract. Rather, the plaintiffs provided school bus transportation services to the defendants and a dispute arose concerning the methodology to be used in calculating the compensation owed to the plaintiffs. In a letter sent in June 1992, the defendants told the plaintiffs that they intended to recoup alleged overpayments made to them and to reduce their compensation rates, while also agreeing to review their documentation supporting increased rates. The plaintiffs then filed actions beginning in November 2002 seeking to prohibit the defendants from recouping overpayments and lowering rates, without first filing a notice of claim. Observing that "an administrative action becomes final and binding when it has its impact upon the petitioner who is thereby aggrieved," the court found that as the defendants' June 1992 letter left open the possibility that the plaintiffs could keep their increases, there was "no indication that [the defendants] had made a final determination with respect to the amount of the overpayments." (Id.at 337].) The plaintiffs' claims had thus never accrued.