Center for Discovery, Inc. is a large not-for-profit corporation providing residential and educational services to people with developmental disabilities in Upstate New York. It is seeking reimbursement for special services it is providing to a child with disabilities from the New York City Department of Education.  The New York City Department of Education is refusing to pay for such services, and is claiming that Center for Discovery must seek funding from the State before it can seek reimbursement from the City.

Center for Discovery brought a CPLR Article 78 proceeding against the City Department of Education seeking the reimbursement.  The lower court dismissed the proceeding, holding that Center for Discovery had to exhaust administrative remedies with the State.  However, the Appellate Division, First Department reversed the lower court order, holding that there were no suitable remedies for Center for Discovery to exhaust in either the City or the State.

 

Center For Discovery v. NYC Department Of Education, 2018 NY App Div LEXIS 3432 (1st Dept. 2018)