2006 New York Code - Claims For Damage Generally.

 
    § 120. Claims for damage generally. There shall be allowed and paid to
  every  person  sustaining  damages  from the canals or from their use or
  management, or resulting or arising from the neglect or conduct  of  any
  officer  of  the  state  or  the  corporation  having charge thereof, or
  resulting or arising  from  any  accident,  or  other  matter  or  thing
  connected  with the canals, the amount of such damages to be ascertained
  and determined by the proper action or proceedings before the  court  of
  claims,  but no judgment shall be awarded by such court for such damages
  in any case unless the facts provided therein  make  out  a  case  which
  would  create  a  legal  liability against the state or the corporation,
  were the same established in evidence in a court of justice  against  an
  individual  or  corporation;  but the corporation may make settlement of
  any such claim in any case where the amount thereof does not exceed  the
  sum of five hundred dollars but no settlement shall be effective against
  the  state including the corporation until the same has been approved by
  the attorney-general; provided that the provisions of this section shall
  not extend to claims arising from damages resulting from the  navigation
  of  canals,  and further provided that the provisions herein relating to
  damages  resulting  from  navigation  of  the   canals   shall   control
  notwithstanding  any  contrary  or  inconsistent provisions of any other
  law, general or special. The  corporation  shall  not  pay  any  damages
  awarded,   or   the  amount  of  any  commutations  agreed  on  for  the
  appropriation of land or water, or for the erection of  a  farm  bridge,
  until  a  satisfactory abstract of title and certificate of search as to
  encumbrances is furnished, showing the person demanding such damages  or
  commutations  to  be legally entitled thereto, which abstract and search
  shall be filed in the office of the corporation.