Loos v. City of New York

170 Misc. 14, 9 N.Y.S.2d 760, 1939 N.Y. Misc. LEXIS 2843
New York Supreme Court·Decided January 31, 1939·Published·Cited by 3 cases

Opinion

Kadien, J.

This is a taxpayer’s action brought under section 51 of the General Municipal Law against the city of New York, the public officials constituting its board of estimate (hereinafter referred to as the “ board ”), and the North Shore Bus Co., Inc. (hereinafter referred to as “ North Shore ”).

The plaintiff seeks to have declared void the contract executed by the mayor on behalf of the city with the North Shore for the operation of buses in the so-called Zone D District in Queens county, and the resolution of the board adopted on December 8,1938, authorizing it, and also to restrain North Shore from establishing, maintaining or operating any bus lines pursuant to such contract.

While the plaintiff has, in his prolix complaint, gone far afield to assail the action of the board in passing the resolution above [17] referred to, his trial counsel has properly confined the proof to the basic elements of the action — that the legal requirements precedent to the issuance of the particular grant or contract here involved were not complied with. The fact that the plaintiff herein is and for five years last past has been an employee of Bee Line, Inc. (one of the seven petitioners for the contract ultimately awarded to North Shore), which company will, in consequence thereof, be supplanted as one of the present non-franchised operators of bus lines in the district affected, is immaterial. Whether each of the several requirements of chapter 14 of the New York City Charter was met is the sole concern of the court in determining the issues here presented, for, as was said in Blanshard v. City of New York (262 N. Y. 5, 12), “ if it be true that these formalities and requirements were not met by the Board of Estimate and Apportionment, then the alleged grant of the rights in the streets was void and illegal.”

Judge Crane, writing the opinion of the court in the Blanshard case, succinctly summarized the things which were required to be done under section 74 of the Greater New York Charter (now substantially embodied in chapter 14 of the New York City Charter, in effect January 1, 1938), “ before any grant of a ‘ franchise or right ’ to use any street shall be made,” as follows:

(1) A public hearing shall be held upon the petition therefor.
“ (2) The Board of Estimate and Apportionment shall make inquiry as to the money value of the franchise.
“ (3) The Board shall make inquiry as to the adequacy of the compensation proposed to be paid therefor.
“ (4) The Board shall embody the result of such inquiry in a form of contract.
“ (5) The Board shall hold a public hearing on the proposed contract after public notice.”

In asserting the alleged failure to comply with the statutory requirements of the charter, in the grant under consideration, the plaintiff has presented six principal points of non-compliance, which the court will dispose of separately:

(1) That there was no public hearing upon the petition therefor ” because there was no petition for a terminable permit,” which is what the North Shore was actually granted in the contract.

This point is predicated upon the fact that the petition of North Shore did not in so many words request a contract containing a terminable permit. It is contended that the hearing on the petition, under section 368 of the New York City Charter, must be had upon a petition which in so many words requests the very contract which is ultimately entered into. It is argued that what was requested [18] by North Shore in its petition was a contract .for a definite or fixed term — what it received was a terminable permit with no fixed term; therefore, the hearing upon such a request was not a compliance with the statutes requiring a hearing on a petition “ therefor.”

On the other hand, the defendants urge that all that a petition for this form of franchise need contain is a request that the city grant the petitioner a contract; the exact character of contract, the precise terms and form of contract — that is for the city to determine after the hearings and procedure prescribed by the statute.

With this contention I am in accord. Section 368 of the New York City Charter requires no particular form of petition, nor is there anything therein prescribed as to what the petition must contain.

As said by Mr. Justice Cotillo in Tompkins Bus Corp. v. LaGuardia (156 Misc. 651; affd., without opinion, 246 App. Div. 714 [1st Dept.]), at page 653 of the Miscellaneous Reports: “ The charter requires merely a petition for the grant of a franchise. It does not state that the terms and conditions of the franchise are to be included in the petition or to be published as part of the petition. If the board of estimate and apportionment could proceed to grant the franchise immediately after the hearing held upon the return day of the petition, there might be considerable justification for reading into section 74 an implied requirement that the petition contain the terms and conditions of the contemplated grant. * * * On the contrary, that section requires the board, at the hearing upon the petition, to ‘ make inquiry as to the money value of the franchise or right proposed to be gránted and the adequacy of the compensation proposed to be paid therefor ’ and to embody the result of such inquiry in a form of contract, with all the terms and conditions, including the provisions as to rates, fares and charges/ which proposed contract is to be published in full prior to ‘ a public hearing thereon at which citizens shall be entitled to appear and be heard.’ Ample opportunity is, therefore, afforded to the public after the hearing upon the petition and to appear and be heard in respect to the terms and conditions of the proposed grant.”

The petition which was involved in the last cited case was described in the court’s opinion (pp. 652, 653) as “ an application for a franchise to operate buses upon routes described in detail in the petition, but contained nothing else. No mention was made of the term of the proposed franchise, of the conditions upon which it was to be granted, or of the compensation to be paid.” In the instant case the advertised petition of North Shore, dated June 27, [19]*191938 (Plaintiff’s Exhibit 1), stating simply “ We hereby apply for a franchise for the following routes ” (enumerating such routes), is similar to that in the Tompkins case, which, in turn, was similar in form and contents to petitions which for a number of years had been used “ to initiate all franchise proceedings under section 74 of the Charter ” (p. 654).

It was said in City of New York v. New York City R. Co. (193 N. Y. 543, 549): “ So, when the meaning of a statute is doubtful, a practical construction by those for whom the law was enacted, or by public officers whose duty it was to enforce it, acquiesced in by all for a long period of time, in the language of Mr. Justice Nelson, ‘ is entitled to great if not controlling influence.’ ”

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Loos v. City of New York, 170 Misc. 14, 9 N.Y.S.2d 760, 1939 N.Y. Misc. LEXIS 2843 (N.Y. Super. Ct. 1939).

170 Misc. 14 (Loos v. City of New York) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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