N.Y. Town Law § 66

§ 66. Place of trial of actions and proceedings against towns;\ninhabitants not incompetent to act thereat. 1. The place of trial of all\nactions and proceedings against a town or any of its officers or boards\nshall be the county in which the town is situated.\n 2. Upon the trial of any issue or the prosecution of any proceeding,\nor upon the taking or making of any inquisition, appraisal or award, or\nupon the judicial investigation of any facts whatever, to which issue,\nproceedings, inquest, investigation or award a town is a party, or in\nwhich a town may in any way be interested, no person shall be deemed\nincompetent as a judge, referee, commissioner, witness or juror by\nreason of his being an inhabitant, freeholder or taxpayer of the town.\n