Cityspec, Inc. v. Smith

617 F. Supp. 2d 161, 2009 U.S. Dist. LEXIS 42318, 2009 WL 1406616
CourtDistrict Court, E.D. New York
DecidedMay 18, 2009
DocketCV 07-1224
StatusPublished
Cited by22 cases

This text of 617 F. Supp. 2d 161 (Cityspec, Inc. v. Smith) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cityspec, Inc. v. Smith, 617 F. Supp. 2d 161, 2009 U.S. Dist. LEXIS 42318, 2009 WL 1406616 (E.D.N.Y. 2009).

Opinion

*164 MEMORANDUM AND ORDER

WEXLER, District Judge.

In this action, Plaintiffs allege that the New York State statute regulating the business of boiler inspection violates the United States Constitution. Named as Defendant is the New York State official alleged to be responsible for administration and enforcement of the statute. Arguing that there are no questions of material fact, both parties move for summary judgment. For the reasons that follow, Plaintiffs’ motion is denied, and Defendants’ motion is granted.

BACKGROUND

I. The Boiler Inspector Statute and Regulations

In view of the fact that the New York State statute regulating the inspection of boilers, and rules promulgated pursuant thereto, are at the core of this litigation, the court will first describe the relevant statutory and regulatory framework.

Inspection of boilers within the State of New York is subject to the detailed statutory scheme set forth in Section 204 of the New York State Labor Law (“Section 204”). That section provides that the New York State Commissioner of the Department of Labor (the “Commissioner”) shall cause boilers, as defined in the law, to be inspected annually or, depending upon the type of boiler, at least once every two years. N.Y. Labor L. § 204(1).

The identity of those who may conduct boiler inspections, and the credentials they must hold is also set forth in the Section 204. First, those employed by the Commissioner, meaning state employed boiler inspectors, may conduct statutory inspections. Second, Section 204 authorizes inspections by insurance companies that meet statutory and regulatory requirements. The statutory source allowing for inspection of boilers by insurance companies lies in subsection 8 of Section 204. That subsection states that boilers inspected by insurance companies are exempt from the requirement of additional inspection by the Commissioner. Insurance company employees who may conduct statutory boiler inspections must hold “certificates of competency,” issued by the Commissioner, according to promulgated rules and regulations. See N.Y. Labor L. § 204(8)(a)(b); 12 N.Y.C.R.R. § 4-2.3.

In addition to providing for state boiler inspection, the statute addresses boiler inspection by cities. Section 204 distinguishes between “cities,” and other political subdivisions by specifically charging cities with the obligation to carry out the inspection duties of the Commissioner. Pursuant to this duty, cities are empowered to enact local laws regulating the inspection of boilers within their respective jurisdictions. N.Y. Labor L. § 204(7). Inspection of boilers located in cities may be conducted by “competent inspectors employed by the city,” or by insurance companies, as set forth in the Labor Law. N.Y. Labor L. § 204(7).

The City of New York, and other cities within the Sate, have been granted permission by the State to allow for the inspection of boilers by entities other than city employees. For example, in 1991, the New York State Department of Labor issued a variance to New York City allowing for the inspection of boilers by certain licensed boiler installers. While that variance denied a request to allow for inspection by any Master Plumber, the State revisited that denial in 1992, and issued the requested variance. Later that year, the State Department of Labor issued a decision requiring that those conducting boiler inspections within the City of New York possess an Oil Burner Installer License *165 issued by New York City. As the foregoing demonstrates, New York City has obtained the right, from the State Department of Labor, to have boiler inspections conducted by a broader class of inspectors than that specified in the Labor Law.

Political subdivisions that are not cities are not authorized by the Labor Law to carry out the duties of the Commissioner with respect to the inspection of boilers. Neither these entities, nor the State of New York, have extended to class of those authorized to conduct boiler inspections to include private entities other than insurance companies. Thus, according to the statutory scheme, boiler inspections throughout the State of New York are authorized to be conducted by state boiler inspectors and authorized insurance companies. In cities, boiler inspections may be conducted, additionally, by those authorized pursuant to a State-issued variance. This includes inspection by private non-insurance company entities that meet city regulations.

Consistent with Section 204, the regulation governing the boiler inspection competency examination provides that those wishing to take the test be, inter alia, “actually in the employ of the State of new York, a duly authorized insurance company or a qualified city....” 12 N.Y.C.R.R. § 4-2.3(c). The regulation gives the Commissioner the discretion to waive these requirements upon a finding that “such waiver is necessary or convenient for the enforcement or administration of Section 204.” 12 N.Y.C.R.R. § 4-2.3(c).

II. Plaintiffs’ Business and the Factual Allegations of the Complaint

Plaintiff Cityspec, Inc. (“Cityspec”) is a corporation engaged in the business of conducting boiler inspections. Plaintiff Bruno Tucci (“Tucci”) is an employee of Cityspec.

A. City spec’s Inspections Within Cities

Cityspec has taken advantage of the variance granted to New York City allowing non-insurance company entities to conduct boiler inspections. Cityspec also states that it has engaged in the business of boiler inspection in other cities in the State of New York, specifically, the cities of Yonkers and Great Neck. In many eases, Cityspec states that it has been hired by insurance companies to inspect boilers. Cityspec has been successful in obtaining the right to inspect many boilers throughout the State of New York. Indeed, the company states that it “commands over 30% of the boiler inspection market in New York City, Yonkers and Great Neck.”

B. City spec’s Attempts To Obtain A State-Wide Variance

While Cityspec has enjoyed success in its business operations, the Labor Law’s statutory scheme precludes it from expanding its business to include areas within the State of New York that are not cities, including large areas located within Nassau and Suffolk counties. In light of the statutory bar, Cityspec has attempted to obtain the right to inspect boilers statewide by seeking a variance of Section 204. To that end, in December of 2001, Cityspec applied to the New York State Department of Labor for a variance that would allow the company to conduct statutory inspection of boilers outside of cities. The Department of Labor opposed the variance, interpreting Section 204 to allow only for inspection by state and city employees, and by insurance companies.

The variance sought by Cityspec was denied by the Department of Labor in a decision dated February 15, 2002. That decision relied upon the statement of the New York State Chief Boiler Inspector who opined that there was no need for the *166 variance.

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Cite This Page — Counsel Stack

Bluebook (online)
617 F. Supp. 2d 161, 2009 U.S. Dist. LEXIS 42318, 2009 WL 1406616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cityspec-inc-v-smith-nyed-2009.