What remedy does a court have if it finds an agency acted illegally in a CPLR Article 78 action?

• A. Refer the matter to the legislature.
• B. Dismiss the case without changing the order.
• C. Annul or modify the agency's order and direct further action consistent with the court's order.
• D. Issue a new rule independent of court.

Answer: (C)

When a court reviews an agency under CPLR Article 78 and finds illegality, it can annul or modify the agency’s order and direct further action that complies with the court’s ruling. This lets the court correct the error while keeping the agency within the scope of lawful action, often by issuing a revised order or remanding for further proceedings as needed. The court’s remedy is not to refer the matter to the legislature, to dismiss without providing any relief, or to issue a brand-new rule independent of the agency. The governing idea is that the court ensures the agency’s decision aligns with the law and can shape the agency’s next steps to achieve that alignment.