N.Y. Second Class Cities Law § 242

§ 242. Inhabitants not incompetent; place of trial of actions and\nproceedings. Upon the trial of any issue or the prosecution of any\nproceeding, or upon the taking or making of any inquisition, appraisal\nor award, or upon the judicial investigation of any facts whatever, to\nwhich issue, proceedings, inquest, investigation or award the city is a\nparty, or in which the city may, in any way, be interested, no person\nshall be deemed incompetent as a judge, referee, commissioner, witness\nor juror by reason of his being an inhabitant, freeholder or taxpayer of\nthe city. The place of trial of all actions and proceedings against the\ncity, or any of its officers, boards or departments shall be the county\nin which the city is situated.\n