N.Y. Town Law § 65: Actions and proceedings by and against towns

§ 65. Actions and proceedings by and against towns. 1. Any action or

special proceeding for or against a town, or for its benefit, and upon a

contract lawfully made with it, or with any of its officers or agents

authorized to contract in its behalf, or to enforce any liability

created, or duly enjoined upon it, or upon any of its officers or agents

for which it is liable, or to recover damages for any injury to any

property or rights for which it is liable, shall be in the name of the

town. The town board of any town may authorize and direct any town

officer or officers to institute, defend or appear, in any action or

legal proceeding, in the name of the town, as in its judgment may be

necessary, for the benefit or protection of the town, in any of its

rights or property. It shall be the duty of any officer or officers so

authorized and directed to institute said action or legal proceeding or

to defend or appear therein, and the reasonable and necessary expense of

such action or proceeding, or defense or appearance shall be a town

charge. No such officer or officers, however, shall employ legal counsel

except as directed by the town board.

2. The town may sue and be sued at law for the breach of any lawful

contract entered into by it on behalf of a district wholly located in

such town. Any sum of money recovered by it in such an action shall be

paid over to the town treasury and be credited to such district. In the

event of the entry of any judgment against such town by reason of a

contract made on behalf of a district, the town shall forthwith satisfy

and pay such judgment, interest and costs, and the amount so paid in

satisfaction of any such judgment, interest and costs shall be a charge

against such district and the amount thereof shall be assessed and

levied against and collected from the several lots and parcels of land

within the district in the same manner as other district charges, or the

amount of any such judgment, including interest and costs, may be

financed pursuant to the local finance law in which event amounts

necessary to provide for the annual payments of principal of and

interest on any obligations issued by the town for such purpose shall be

assessed and levied against and collected from the several lots and

parcels of land within the district in the same manner as other district

charges.

3. On and after the first day of September, nineteen hundred

thirty-nine, no action shall be maintained against a town upon or

arising out of a contract entered into by the town unless the same shall

be commenced within eighteen months after the cause of action thereof

shall have accrued, nor unless a written verified claim shall have been

filed with the town clerk within six months after the cause of action

shall have accrued, but no such action shall be brought upon any such

claim until forty days have elapsed after the filing of the claim in the

office of the town clerk.