STATE TRIAL COURT RULES THAT DOH MAY NOT IMPOSE FINES OR REVOKE LICENSES WITHOUT AFFORDING ACCUSED A RIGHT TO A JURY TRIAL
In a potentially landmark decision (Ball v. New York State Department of Health [DOH]) dated April 14, 2025, a state Supreme Court Justice ruled that the New York State Department of Health (“DOH”) could not impose fines or revoke licenses without first affording the accused a right to a jury trial. If upheld on appeal, this would mean that DOH can no longer hold hearings before a Department-appointed Administrative Law Judge (“ALJ”) as a vehicle to impose fines or revoke licenses. Instead, if DOH seeks such penalties, it must instead bring suit in a state Supreme Court, where the accused has a right to a jury trial.
This is a very significant development since, until now, in administrative hearings before ALJs, DOH enjoyed a decided “edge” because it did not have to afford discovery, the rules of admissible evidence were relaxed, and appellate courts’ review of any determinations were usually based on the so-called “substantial evidence” rule which meant that courts would uphold the ALJ determinations if there was some evidentiary support in the record even if the Court itself would have otherwise reached a different result.
While this decision could put a stop to the multitude of enforcement actions initiated against providers, it remains to be seen whether the decision will be upheld on appeal. Until then, member facilities that are presently or in the future may be subject to enforcement actions by DOH which are to be held before Administrative Law Judges are urged to consult their attorneys before settling any such actions so that they may explore whether or not they should exercise their right to a jury trial.
In the meantime, NYSHFA will be closely monitoring this decision and what happens on appeal and will keep the membership advised.
If you have any questions, please contact NYSHFA’s General Counsel, Neil Murray, at (518) 694-5685 or at cmurray@oalaw.com.
