Metropolitan Waste Management Corp. v. Town of Hempstead

135 Misc. 2d 548, 515 N.Y.S.2d 956, 1987 N.Y. Misc. LEXIS 2262
CourtNew York Supreme Court
DecidedApril 2, 1987
StatusPublished

This text of 135 Misc. 2d 548 (Metropolitan Waste Management Corp. v. Town of Hempstead) 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
Metropolitan Waste Management Corp. v. Town of Hempstead, 135 Misc. 2d 548, 515 N.Y.S.2d 956, 1987 N.Y. Misc. LEXIS 2262 (N.Y. Super. Ct. 1987).

Opinion

[549]*549OPINION OF THE COURT

Eli Wager, J.

This is an action by the plaintiff corporation Metropolitan Waste Management Corp. (MWM) for a judgment declaring that the award by the defendant Town of Hempstead (Town) of a contract to the defendant Browning-Ferris Industries of Long Island, Inc. (BFI) for a service agreement, for transfer station construction and operation, and for waste transfer and disposal services, to be in violation of law and invalid. The defendants move separately for summary judgment.

Plaintiff alleges that this action was commenced pursuant to General Municipal Law § 120-w (6). That section deals with the authorization and regulation of contracts and agreements for solid waste collection and disposal. The legislation specifically provides therein the means and methods by which municipalities can address the unique needs and demands made upon them by the current state of affairs in their waste disposal functions. As a part of the statute, the time-honored requirements for competitive bidding procedures were relaxed or eliminated in favor of permitting municipal governments to negotiate for the erection of waste management and disposal facilities on a "request for proposals” basis (General Municipal Law § 120-w [4] [e]).

The Town of Hempstead owns the Hempstead Resource Recovery Facility, an existing waste disposal plant adjacent to the Meadowbrook Parkway in the vicinity of Garden City. That facility has been closed for some nine years by reason of the fact that the disposal process utilized therein was deemed to be an environmental hazard. It is common knowledge that the Town has for some years sought to revise or alter the existing plant in some fashion so as to address a critical waste disposal problem which presents itself to this municipality and almost every municipality in the country. Toward that end, it appears that in or about 1984 the Town of Hempstead retained a consulting firm, CSI Resource Systems, Inc. (CSI), to assist the Town in redeveloping the Hempstead Resource Recovery Facility. That consultant subsequently prepared requests for proposals for the redevelopment of the plant which ultimately were issued in draft form on or about May 28, 1986. The Town conferred with prospective proposers among which was a predecessor and now principal of the plaintiff corporation (Omni) and the defendant BFI. The statutory 60-day period for comments followed, at the end of which two [550]*550proposals were received by the Town, one from the plaintiff MWM and the other from BFI. According to the affidavit of a member of CSI (Harkins) submitted in support of the Town’s motion for summary judgment, and the exhibits appended thereto, the Town was advised by their consultants that the plaintiff’s total projected price was $909,622,426 and that the defendant BFI’s projected price was $786,024,909, a difference of approximately $123,000,000. Subsequent thereto, the Town notified defendant BFI that it was the "preferred vendor”. This action followed.

On the argument of the motions of the defendant Town and BFI and in the supporting papers of both movants and opponent, it was conceded that the court must first deal with a threshold issue of the plaintiff’s standing to sue in this case. Critical to the determination of this issue are the following facts:

(1) The plaintiff MWM does not maintain an office for the conduct of its business within the Town of Hempstead; and

(2) Plaintiff is not the owner of real property within the Town of Hempstead; and

(3) The plaintiff does not seek the award of the contract to itself, but brings this action "for the benefit of the Town and its citizens”.

Thus, the issue of standing is squarely presented for court review. Plaintiff MWM asserts that this action "is expressly contemplated by General Municipal Law § 120-w”. Plaintiff and the defendants agree that this is not a CPLR article 78 proceeding. Although plaintiff MWM relies upon subdivision (6) of the statute for authority to commence this action, the nature of the action to be commenced under that statute is not defined or prescribed. Since there is no prescribed cause of action, MWM argues that the legality of the contract award is to be decided under common-law rules and seeks, in effect, a declaratory judgment invalidating the award.

Defendants Town and BFI urge that in the absence of a specifically legislated cause of action, this action must be treated as an action under section 51 of the General Municipal Law since it sounds in a claim of municipal waste and/or harm to the defendant Town and to the taxpayers and citizens of the defendant Town. Plaintiff MWM readily admits that it seeks to vindicate a right of the citizens of the defendant Town and eschews any selfish motive in that it does not claim that the contract should have been awarded to it nor does it [551]*551seek an award of damages or any other form of relief for itself.

The court has reviewed subdivision (6) of the statute which is silent on the issue of the form of action to be taken and the party or parties aggrieved who may bring such an action. It does appear that there are no reported cases on this aspect of the statute and, thus, we are dealing with a case of first impression. Clearly, the plaintiff as an unsuccessful bidder would be an aggrieved party if it sought an award of the contract to itself. This the plaintiff expressly renounces.

In order to vindicate a public right and obtain a benefit for the taxpayers of the Town, which it professes to be doing in this action, the plaintiff seeks to establish that the entire request for proposal process, at least as utilized by the defendants in this case, is contrary to law and thus results in an illegal act with a consequence of waste of public funds. Such an action sounds in that class of actions which are proscribed in General Municipal Law § 51: "to prevent waste or injury to, or to restore and make good, any property, funds or estate of such county, town, village or municipal corporation by any person or corporation whose assessment, or by any number of persons or corporation, jointly, the sum of whose assessments shall amount to one thousand dollars, and who shall be liable to pay taxes on such assessment in the county, town, village or municipal corporation”. In brief, this is a taxpayer’s action unless one can find a legal basis which would bring the plaintiff within the ambit of those cases where standing to sue has been enlarged beyond the traditional concepts of an aggrieved party (see, Matter of Douglaston Civic Assn. v Galvin, 36 NY2d 1). Plaintiff concedes that the statute is "totally silent on who may bring that action” which is authorized. Plaintiff relies upon Douglaston (supra) and its progeny Matter of Fritz v Huntington Hosp. (39 NY2d 339) and Matter of Dairylea Coop. v Walkley (38 NY2d 6) for its assertion that it has standing to sue in this case.

Taking another alternative tack, plaintiff further argues that it is aggrieved by defendant Town’s release of plaintiff’s confidential proposal to BFI in response to a subpoena issued by BFI in an action pending in Buffalo by and between BFI and its former employee, who later became affiliated with MWM. Numerous affidavits and exhibits supplied by the defendants tend to establish that this claim by MWM is unfounded. The subpoena was responded to only after the proposals were submitted, dollar estimates were deleted from [552]

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Bluebook (online)
135 Misc. 2d 548, 515 N.Y.S.2d 956, 1987 N.Y. Misc. LEXIS 2262, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metropolitan-waste-management-corp-v-town-of-hempstead-nysupct-1987.