Matter of Hodes v. Axelrod
New York Court of Appeals
70 N.Y.2d 364, 520 N.Y.S.2d 933, 515 N.E.2d 612 (1987)
- Written by Steven Pacht, JD
Facts
Nursing-home owners Louis Hodes and Herman Surkis (collectively, Hodes) (defendants) were convicted of Medicaid fraud, after which the state health department (department) brought an administrative proceeding to revoke Hodes’s nursing-home operating certificate pursuant to the Public Health Law, which called for automatic revocation upon an operator’s conviction for engaging in industry-related felonies. Hodes’s certificate was revoked, but the revocation was reversed on appeal due to a conflict between the Public Health Law and the Correction Law. The legislature quickly amended the Public Health Law and the Correction Law to fix the conflict. David Axelrod (plaintiff), the department’s commissioner, then brought a second administrative proceeding to revoke Hodes’s certificate. Upon Hodes’s petition, the supreme court enjoined the second proceeding on res judicata grounds based on the outcome of the initial proceeding. The appellate division affirmed, ruling that Hodes had a property interest in the initial ruling reversing the license revocation and that res judicata barred the second proceeding. Axelrod appealed.
Rule of Law
Issue
Holding and Reasoning (Kaye, J.)
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