Burke v. Yudelson

81 Misc. 2d 870, 368 N.Y.S.2d 779, 1975 N.Y. Misc. LEXIS 2477
CourtNew York Supreme Court
DecidedMay 29, 1975
StatusPublished
Cited by12 cases

This text of 81 Misc. 2d 870 (Burke v. Yudelson) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burke v. Yudelson, 81 Misc. 2d 870, 368 N.Y.S.2d 779, 1975 N.Y. Misc. LEXIS 2477 (N.Y. Super. Ct. 1975).

Opinion

David C. Boehm, J.

For some time, local municipal authorities have permitted contractors performing municipal construction work to purchase interest bearing municipal bonds in lieu of the 10% retainages required by law. Recently, a good many of such transactions were handled by a local bond [871]*871brokerage house, Paul R. Dean & Co. Inc. For some reason not fully explained or understood, the municipalities permitted Paul R. Dean & Co. Inc., after purchase, to retain these bonds in its custody.

The financial demise several years ago of this brokerage firm led to civil and criminal reverberations which are still echoing in the courts. Indeed, as a County Court Judge, I presided at two of the criminal trials brought against the Paul R. Dean & Co. Inc. and Paul R. Dean, individually, as a result of the mysterious disappearance of these bonds.

A number of civil lawsuits are presently pending involving contractors, banks and municipalities arising out of the loss of substantial amounts of money or the bonds purchased with such retainage funds, and this article 78 proceeding is associated with one such lawsuit, "The City of Rochester vs. Chemical Bank of New York State and Great Lakes Dredge and Dock and Dunbar and Sullivan Company et al”. One of the defendants, Great Lakes Dredge and Dock and Dunbar and Sullivan Company, doing business as Great Lakes Dunbar Rochester (hereafter GLDR), is represented by a law firm of which the petitioner, Patrick T. Burke, is either a member or an associate.

This proceeding seeks to annul the determination of the respondent, Tanya Yudelson, as Records Access Officer of the City of Rochester, denying permission to the petitioner to inspect and copy certain municipal records on the ground that they are exempt from disclosure under both article 31 of the CPLR and the New York Freedom of Information Law (Public Officers Law, art 6 [L 1974, chs 578, 579, 580, eff Sept. 1, 1974]).

Because of the association with the criminal trials in which the brokerage house and its president were defendants, the question of disqualification was submitted to counsel. They requested this not be done. Since neither the brokerage house nor its former president is a party to this litigation and is involved in this proceeding peripherally at best, counsels’ stipulation was accepted and the court did not recuse itself.

The pertinent train of events began on January 22, 1975 when the petitioner sent a letter to respondent requesting access to certain documents pursuant to the New York Freedom of Information Law. There were six separate requests, but this proceeding involves only those numbered "2” and "4”.

Number "2” involved a request for copies, at petitioner’s [872]*872expense, of "all internal or external audits or factual tabulations made by or on behalf of Rochester with respect to municipal contract No. 208-69 (Comptroller’s No. 10309) [the contract between the City of Rochester and GLDR forming the basis of the lawsuit].”

Number "4” of petitioner’s request sought copies of "any records, letters, memoranda, documents and writings of any sort with respect to Paul R. Dean & Co. Inc.”

By letter dated February 13, 1975, respondent admitted the existence of an audit commenting on the city’s previous retainage procedures, but advised that it would not be released because "matters directly related to the City’s previous retain-age procedures are presently under litigation.” The respondent’s letter further advised that letters to or from Dean would not be released either.

It is in this context that this proceeding is brought.

In her answer, the respondent states that, as to petitioner’s request "2”, there are no audits dealing directly or solely with Municipal Contract No. 208-69, but there is at least one audit dealing in part with the practice of substituting bonds in lieu of contract retainages and therefore, since it does not deal specifically with Contract No. 208-69, it is not required to be surrendered. However, the answer goes on to say, even a specific request for this audit would be denied on the ground "that the information sought relates directly to issues which are the subject of litigation between the City of Rochester and GLDR.”

The issue presented is clear and direct: — what effect, if any, does the New York Freedom of Information Law have upon the curtailment of disclosure contained in article 31 of the CPLR and the common-law privilege of a governmental body?

The New York Freedom of Information Law became effective September 1, 1974. Section 85 of the Public Officers Law sets forth the Legislature’s intent as to its purpose, stating in part: "[I]t is incumbent on the state and its localities to extend public accountability wherever and whenever feasible. The people’s right to know the process of government decision-making and the documents and statistics leading to determinations is basic to our society. Access to such information should not be thwarted by shrouding it with the cloak of secrecy or confidentiality.”

Under the definition of "municipality” in subdivision 2 of [873]*873section 87, the City of Rochester comes within the law’s application. Accordingly, by virtue of this section, it would ordinarily be required to make available for public inspection and copying such things as final opinions, including concurring and dissenting opinions, orders made in the adjudication of cases (§ 88, subd 1, par a); "documents, memoranda, data or other materials constituting statistical or factual tabulations which led to the formulation thereof’ (§ 88, subd 1, par b); and "internal or external audits and statistical or factual tabulations made by or for the agency” (§ 88, subd 1, par d).

The law further requires each agency or municipality, on request for "identifiable records” made in accordance with the published rules, to make the records "promptly available to any persons "(§ 88, subd 6).

The only restrictions imposed by the law as to the public’s access to public records are set forth in subdivision 7 of section 88. It provides:

"7. Notwithstanding the provisions of subdivision one of this section, this article shall not apply to information that is:
"a. specifically exempted by statute;
"b. confidentially disclosed to an agency and compiled and maintained for the regulation of commercial enterprise, including trade secrets, or for the grant or review of a license to do business and if openly disclosed would permit an unfair advantage to competitors of the subject enterprise, but this exemption shall not apply to records the disclosure or publication of which is directed by other statute; or
"c. if disclosed, an unwarranted invasion of personal privacy, pursuant to the standards of subdivision three of this section.
"d. part of investigatory files compiled for law enforcement purposes.”

The respondent’s position is that the petitioner is not entitled to the information for two reasons. One is that the information requested bears directly upon the litigation in which both parties have an interest, making such information privileged and confidential. The second reason, and the basic thrust of its position, is that those provisions of article 31 of the CPLR which are in conflict with the Freedom of Information Law, act as a bar to the obtaining of information thereunder.

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Bluebook (online)
81 Misc. 2d 870, 368 N.Y.S.2d 779, 1975 N.Y. Misc. LEXIS 2477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burke-v-yudelson-nysupct-1975.