On June 18, 2026, the Appellate Division, Third Department handed the Watershed Agricultural Council a significant victory.
In Matter of Ryan v. Watershed Agricultural Council of the New York City Watersheds, Inc., 2026 NY Slip Op 03853, the court affirmed dismissal of farmer Colm Ryan's Article 78 proceeding seeking records from WAC under the Freedom of Information Law.
WAC's position was simple: we are not government.
The Third Department agreed—for FOIL purposes.
It characterized WAC as a “charitable not-for-profit environmental corporation” contracting with the New York City Department of Environmental Protection (“DEP”).
The court emphasized WAC's allegedly formally private attributes: its board elects its members; DEP has only one representative on the board; WAC establishes its own budget; WAC hires and fires its own employees; and WAC maintains its own insurance. Those findings, of course, were contradicted by the case's own record - but the spectacularly lazy, incompetent and very possibly corrupt Judge Brian Burns who I wrote about multiple times on this blog, wrote otherwise - and the 3rd Department rubber-stamped Burns' incorrect findings of fact without looking.
Yet, the 3rd Department acknowledged at least two facts, troubling for WAC, that make the victory in Ryan considerably less sweeping than WAC might prefer.
First, WAC receives approximately 95% of its revenue from DEP.
Second, the Third Department expressly acknowledged that WAC “arguably performs a governmental function by working to reduce water pollution in the City's watershed region.”
Nevertheless, it held that WAC's contractual relationship with DEP did not make WAC an “agency” under FOIL.
All that WAC had to do to keep that victory is to keep its proverbial mouth shut.
But - WAC kept talking.
And only two months after Ryan, and one month after dismissal of Neroni v WAC (see below) based on Ryan - WAC publicly announced something rather difficult to reconcile with the image of an ordinary private nonprofit contractor:
WAC now wants to refer farmers into the New York State Agricultural Mediation Program to resolve disputes before they reach court.
WAC's August 25 Meeting Creates a Very Uncomfortable Question
On August 27, 2026, The Reporter published Lillian Browne's article, “As Land Changes Hands, WAC Looks to Mediation to Ease Farm Conflicts.”
Browne reported on WAC's August 25 meeting and a presentation concerning the New York State Agricultural Mediation Program.
This was not a discussion about WAC employees mediating their own office disputes.
WAC Executive Director Ryan Naatz identified the subjects confronting WAC: conservation easements, property rights, funding, agricultural development, and New York City's role in the watershed. He specifically discussed conservation work funded through DEP watershed agreements.
Then the discussion became considerably more interesting.
According to Browne, a WAC council member asked whether WAC could incorporate the New York State Agricultural Mediation Program into WAC's dispute-resolution policy as a step before formal litigation.
The reported answer was yes.
WAC members then discussed whether WAC could refer farmers directly to the mediation program when WAC encounters disputes involving conservation easements, property rights, and other complicated matters before farmers filed lawsuits against WAC.
The mediator's response?
“Send them our way.”
Excuse me?
Who Gave This “Private Nonprofit” Authority to Refer Farmers Anywhere?
That is no longer an academic question.
If a farmer voluntarily asks WAC for help obtaining mediation, there is nothing remarkable about WAC providing the telephone number, as a matter of courtesy.
But that is not the institutional arrangement described in the article.
The proposal discussed at the WAC meeting was to incorporate state mediation into WAC's own dispute-resolution policy before litigation and TO IMPOSE THAT POLICY upon farmers by "referring" farmers directly to mediation when WAC encounters qualifying disputes.
That immediately raises a basic question:
What authority does WAC have to exercise a QUASI-JUDICIAL FUNCTION (government function) and to “refer” a farmer's dispute to a state mediation program when the farmer has not agreed to mediation?
And especially when, most likely, an average farmer does not have a law degree and cannot put WAC on the spot with a question - what AUTHORITY - especially after you obtained back-to-back dismissals in Matter of Ryan and in Neroni v WAC asserting that you are NOT state actors and NOT a state agency - do you have to exercise a GOVERNMENT FUNCTION - ANY GOVERMENT FUNCTION, AT ALL?
WAC cannot have it both ways.
If WAC is merely an ordinary private nonprofit contractor - as WAC presented to the Ryan and Neroni v WAC courts (judges Burns, McBride, respectively), then WAC has precisely NO authority over an unwilling farmer - the same as any other private nonprofit.
A private actor/nonprofit can offer mediation.
It can recommend mediation.
It can inform a farmer that mediation exists, as an option before a farmer would consider - with his lawyer! or on his own, as a pro se litigant - mediation.
A farmer can voluntarily request mediation.
But “referral” as part of WAC's institutional dispute-resolution process before litigation is something different.
It places WAC in the quasi-judicial, governmental position of
- identifying disputes,
- classifying them for intervention, and
- routing affected persons toward an official dispute-resolution mechanism.
Where does that authority come from?
- A contract?
- A conservation easement?
- DEP?
- The 1997 watershed agreements?
- A WAC program agreement signed by the farmer?
- A statute?
- A regulation?
- Or exactly from nowhere?
That question becomes especially acute where the dispute is between the farmer and WAC itself.
A quasi-judicial officer MUST BE NEUTRAL.
It may not be both a PARTY in the dispute to be mediated, and the REFERRING QUASI-JUDICIAL OFFICER.
Yet, that is exactly what WAC suggested as its own new PUBLICIZED policy.
Who decides that the farmer should be “referred”?
WAC?
And what happens if the farmer says no?
Mediation Is Consensual. WAC's Claimed Referral Role Is the Issue.
There is an important distinction here.
Nobody needs governmental authority merely to suggest mediation.
But WAC was discussing something institutional: putting the New York State Agricultural Mediation Program into its dispute-resolution policy as a step before litigation.
That necessarily raises questions about authority, consent and consequences.
If participation remains entirely voluntary, then WAC should say exactly that:
No farmer is referred without the farmer's affirmative consent; refusing mediation has no consequence whatsoever for WAC funding, conservation programs, easement administration, eligibility, enforcement, future dealings with WAC, or litigation.
If that is the rule, publish it.
If it isn't the rule, then WAC has a much bigger problem.
Because an organization controlling access to publicly financed agricultural and conservation programs cannot transform “voluntary mediation” into institutional leverage merely by calling the process "a referral".
And, WAC, a COUNSELED entity, may not interfere with UNCOUNSELED, PRO SE farmers' rights of access to court be giving them LEGAL ADVICE as to mediation, LEGAL ADVICE that is WRONG and that purports to amount to a quasi-judicial order that WAC has no authority to issue.
And if WAC possesses some governmental or contractual authority to initiate such a process without the farmer's prior consent, then the obvious question returns:
Where did a supposedly private nonprofit acquire that authority? And did WAC LIE TO TWO COURTS in two separate lawsuits - Justice Burns and the Third Department in Matter of Ryan, and Justice McBride and the Third Department (case is now on appeal) in Neroni v WAC - in claiming that it is not a government agency and not a state actor while at the same time SECRETLY BREWING a "REFERRAL" policy exactly on opposite grounds - and going public with that policy only AFTER the dismissals were obtained?
The Timing Is Spectacular
WAC's timing could hardly be better.
Or worse.
The Third Department decided Ryan on June 18, 2026.
The court concluded that WAC was not a governmental “agency” for FOIL purposes after examining the record then before it. The court emphasized WAC's formal corporate independence and rejected Ryan's request for discovery into the DEP-WAC relationship.
The Delaware County Supreme Court decided Neroni v WAC, based on Ryan decision by the 3rd Department, at the insistence of WAC, on July 14, 2026, dismissing the case and claiming that WAC is just a private nonprofit and not a state actor for purposes of a civil rights, 1983 action.
Justice Mcbride then dismissed claims in Neroni v WAC against NYC DEP (WAC's partner and source of finance and governmental functions), relying on its own dismissal of July 14, 2026 - which, in turn, relied on the Third Department's June 18, 2026 decision in Ryan.
You know what was the date when that dismissal was issued? August 25, 2026, look up Neroni v WAC, EF2026-106, NYSCEF Document # 278.
August 25, 2026 is the very date when WAC went public with its new "referral" policy. You can't make this up. They could not wait even one day.
On August 25, 2026 WAC declared that it will include a REFERRAL policy into its own dispute resolution policy with farmers - as reported by the local press.
And WAC did this while appeal in Neroni v. WACis pending over whether WAC's may be characterized, by conduct, as a state actor for purposes of a 1983 action.
That is quite a way to celebrate dismissals in Ryan and in Neroni v WAC.
Even Better: DEP Was at the Same Meeting
The mediation presentation was not the only important event at the reported WAC's August 25, 2026 meeting.
Three days later, The Reporter published another article by Lillian Browne: “Keeping NYC Tap Water Flowing, Without a Filter.”
That article reports that DEP Acting Executive Director Adam Bosch appeared before WAC at the same August 25, 2026 meeting to present DEP's Future of Filtration Avoidance white paper and discuss the regulatory future of New York City's unfiltered drinking-water system.
Browne explains that the 1997 watershed agreement produced more than $1.7 billion in DEP commitments for watershed programs and expressly identifies WAC as one of the regional entities administering those programs.
DEP is now preparing for the next Filtration Avoidance Determination and reassessing the effectiveness of the land-management programs upon which that governmental regulatory system depends.
So here is what happened at one WAC meeting:
DEP came in through one door to discuss the governmental regulatory program WAC helps administer.
The New York State Agricultural Mediation Program came in through another door to discuss having WAC refer farmers with property and conservation disputes into state mediation before litigation.
And WAC remains, apparently, just an ordinary private nonprofit, not an agency for FOIL purposes, not a state actor for a 1983 action purpose.
Right.
A Shoutout to Farmers: Do Not Accept WAC's Claimed Authority to “Refer” You Anywhere - You Are Being DELIBERATELY WRONGED
First, WAC cheated you out of your legitimate right to FOIL WAC as a state agency to discovery what is brewing in WAC.
Actually, I do not know why the Ryan plaintiff/petitioner went that way - but there is a different way and different entity to FOIL for the same information, NOW, it is not foreclosed by the Ryan 3rd Department decision: just FOIL NYC DEP. Or file 1st Amendment requests with NYC DEP. Or file federal FOIA requests with USDA - another participant in filtration avoidance programs. Those are undeniably state actors, and as to USDA, denials of FOIA requests can be challenged in federal court.
As to WAC's newly announced "referral" policy, farmers should pay very close attention to the word “refer.”
Mediation is consensual unless court-ordered or required by statute or regulation.
If you want mediation, request it.
If WAC offers you mediation (at WAC's own expense) and you want it, nothing can prevent you from accepting it - but I would be very careful to hire a lawyer for the process, otherwise WAC will dupe you of your access to court in that mediation, you know that.
But if WAC tells you that it is “referring” you to mediation because of a dispute involving your farm, your conservation easement, your property rights, your funding, or your dealings with WAC or DEP, do not simply accept the premise that WAC possesses that authority.
Ask.
Ask WAC:
What is the legal basis for your authority to refer my dispute to mediation?
Ask whether the purported authority comes from:
-
a statute or regulation;
-
your conservation easement;
-
a WAC participation agreement you actually signed;
-
WAC's contract with DEP;
-
the watershed MOA or subsequent agreements;
-
a written WAC policy; or
-
some other source.
And ask for the document and the specific provision.
Do not settle for “this is our policy.”
A private organization's adoption of a “policy” does not itself create authority over somebody else's property dispute.
Ask the More Important Question: What Happens If I Say No?
If WAC says mediation is voluntary, farmers should ask WAC to put that proposition in writing.
Ask:
- Can I refuse this referral?
- Will refusing mediation affect my eligibility for any WAC program?
- Will it affect funding?
- Will it affect an existing conservation easement or WAC's administration of that easement?
- Will my refusal be communicated to DEP?
- Will it affect future dealings with WAC?
- Will WAC characterize my refusal adversely in subsequent litigation?
- Who decided that my dispute should be referred in the first place?
And:9. What authority did that person have to make that decision?
Those aren't hostile questions.
They are elementary questions about authority of an entity attempting to exercise POWER over you to potentially FORECLOSE your access to court, to SUE THAT SAME ENTITY or its financing partners.
Because if the answer really is:
“WAC has absolutely no authority over you; we are merely suggesting an entirely voluntary service that you may freely accept or reject without consequence,”
then WAC can say that plainly.
If WAC obtained DELEGATED authority to refer farmers to medication from a government program - it may not EXERCISE those delegated authority to refer farmers to mediation when it ITSELF is a party. Such a referral would directly violate requirement for referrer's neutrality as a quasi-judicial officer.
And be especially alert if refusing WAC's “referral” carries any consequence within the publicly funded watershed program WAC administers, the situation is entirely different.
WAC Cannot Invent Jurisdiction by Calling It a “Policy”
This is the central problem.
WAC's board can adopt policies governing WAC.
That does not mean WAC can adopt a policy creating QUASI-JUDICIAL authority over farmers to be de facto judges in WAC's own cases - in at least referring farmers to mediation.
The source of authority matters.
Consent matters.
The consequences of refusing matter.
And where an organization overwhelmingly financed by government, administering governmental watershed programs, working directly with DEP, and exercising substantial practical power over farmers proposes to insert itself into the path between a property dispute and litigation, the governmental character of that function matters too.
WAC wanted a dismissal Ryan and Neroni v WAC, to shield itself from
(1) FOIL requests (Ryan);
(2) civil rights actions under 42 USC 1983 (Neroni v WAC).
It got dismissals in both.
But Ryan itself acknowledged that WAC arguably performs a governmental function.
Now, while Neroni v. WAC is on appeal over state action, WAC has volunteered evidence of another one.
Quasi-judicial dispute referral.
So farmers should ask the question that the courts have not yet required WAC to answer:
Who gave WAC authority to “refer” your property dispute anywhere?
And until WAC identifies that authority, do not concede that it exists.
SAY NO TO THE FORCED REFERRALS BY WAC TO MEDIATION BEFORE YOU SUE WAC
YOU KNOW WAC WILL CHEAT YOU - AS IT CHEATED SO FAR SEVERAL COURTS IN RYAN AND NERONI V WAC.