Matter of Associated Gen. Contrs. of NYS, LLC v New York State Thruway Auth.
2018 NY Slip Op 02075 [159 AD3d 1560]
March 23, 2018
Appellate Division, Fourth Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
As corrected through Wednesday, May 2, 2018


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 In the Matter of Associated General Contractors of NYS, LLC, et al., Appellants, v New York State Thruway Authority et al., Respondents.

Couch White, LLP, Albany (Jennifer K. Harvey of counsel), for petitioners-plaintiffs-appellants.

Eric T. Schneiderman, Attorney General, Albany (Allyson B. Levine of counsel), for respondents-defendants-respondents.

Appeal from a judgment (denominated order) of the Supreme Court, Onondaga County (Gregory R. Gilbert, J.), entered May 15, 2017, in a hybrid CPLR article 78 proceeding and declaratory judgment action. The judgment, insofar as appealed from, sua sponte dismissed the petition/complaint.

It is hereby ordered that the judgment insofar as appealed from is unanimously reversed in the exercise of discretion without costs and the petition/complaint is reinstated.

Memorandum: In this hybrid CPLR article 78 proceeding and declaratory judgment action, petitioners-plaintiffs (petitioners) appeal from a judgment in which Supreme Court, inter alia, sua sponte dismissed the petition/complaint (petition). We agree with petitioners that the court improvidently exercised its discretion in sua sponte dismissing the petition. "[U]se of the [sua sponte] power of dismissal must be restricted to the most extraordinary circumstances" (Matter of Sheive v Holley Volunteer Fire Co., 145 AD3d 1584, 1584 [4th Dept 2016] [internal quotation marks omitted]). No such extraordinary circumstances are present in this case. Contrary to the court's determination, "a party's lack of standing does not constitute a jurisdictional defect and does not warrant sua sponte dismissal of a complaint" (HSBC Bank USA, N.A. v Taher, 104 AD3d 815, 817 [2d Dept 2013]; see U.S. Bank, N.A. v Emmanuel, 83 AD3d 1047, 1048-1049 [2d Dept 2011]). We therefore reverse the judgment insofar as appealed from in the exercise of discretion and reinstate the petition (see generally Webb v Zogaria, 295 AD2d 924, 924 [4th Dept 2002]). Present—Centra, J.P., Carni, NeMoyer, Curran and Winslow, JJ.