NANCO Environmental Services, Inc. v. Jorling

172 A.D.2d 1, 576 N.Y.S.2d 619, 1991 N.Y. App. Div. LEXIS 15100
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 27, 1991
StatusPublished
Cited by9 cases

This text of 172 A.D.2d 1 (NANCO Environmental Services, Inc. v. Jorling) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NANCO Environmental Services, Inc. v. Jorling, 172 A.D.2d 1, 576 N.Y.S.2d 619, 1991 N.Y. App. Div. LEXIS 15100 (N.Y. Ct. App. 1991).

Opinion

OPINION OF THE COURT

Levine, J.

Petitioner is an environmental laboratory engaged primarily in the testing and analyzing of soil and water samples taken from suspected hazardous waste disposal sites or other potentially contaminated areas. At all times relevant herein, petitioner was certified by the Department of Health (hereinafter DOH) under Public Health Law § 502 (1) to conduct the testing, evaluation and analysis performed by it. Between [4]*41985 and 1989, petitioner performed testing services for the Department of Environmental Conservation (hereinafter DEC) Division of Hazardous Waste Remediation (hereinafter DHWR), the unit charged with the supervision of hazardous waste site cleanups in the State. During that period, petitioner provided its services under both direct contracts with DEC and as a subcontractor for prime contractors hired by DEC.

Sometime during 1985, DEC established a list of "technically acceptable laboratories” (hereinafter the list) containing the names of testing laboratories that could be used by DEC or its primary contractors. Petitioner appeared on the list in 1985. In March 1988, petitioner was notified by respondent John M. Rankin, DHWR’s quality assurance officer, that it was being removed from the list due to alleged deficiencies in its work. Petitioner was restored to the list, however, following a meeting with DEC personnel and a May 1988 field audit.

Thereafter, DEC’S dissatisfaction with petitioner’s work apparently continued and, in March 1989, respondent Michael J. O’Toole Jr., the director of DHWR, advised petitioner in writing that it was again under consideration for removal from the list based upon four general deficiencies in its work and 10 alleged DEC testing protocol violations. Following unsuccessful attempts to schedule a meeting with DHWR and to secure an extension of time in which to respond, petitioner submitted a written reply to O’Toole’s letter. This response was deemed insufficient by O’Toole and, consequently, petitioner was removed from the list. While petitioner was invited to reapply for technically acceptable status, provided that it could demonstrate that the earlier cited problems had been resolved, it was also informed that the earliest possible audit would be in the spring of 1990. Petitioner then sought review by respondent Commissioner of DEC, whose designee ultimately determined that petitioner’s removal from the list was appropriate and that petitioner had been afforded adequate due process.

Petitioner then commenced the instant CPLR article 78 proceeding challenging, inter alia, respondents’ authority to create and maintain the list. Supreme Court granted the petition, concluding, inter alia, that (1) respondents lacked statutory authority to generate and maintain the list, (2) respondents were bound by the certification issued to petitioner by DOH, and (3) petitioner was not afforded adequate due process prior to removal from the list. Supreme Court also [5]*5enjoined respondents from refusing to pay petitioner for contract and subcontract work performed on DEC projects and from "interfering, directly or indirectly, with petitioner’s business, business opportunities, employment, or income”. This appeal followed.

Initially, it is undisputed that subsequent to the entry of Supreme Court’s judgment, DEC abandoned its use of the list, approving laboratories instead on a case-by-case basis in accordance with newly implemented procedures. In view of the foregoing, those portions of the judgment dealing with respondents’ authority to develop and maintain the list and any guidelines relative thereto and petitioner’s removal from the list have been rendered moot (see, Matter of Allen Group v Adduci, 136 AD2d 803). We find no exception to the mootness doctrine that would warrant our review of those issues (see, Matter of Hearst Corp. v Clyne, 50 NY2d 707, 714-715).

Various other provisions of Supreme Court’s judgment must be addressed, however. The first of these is the decretal paragraph directing that respondents are bound by the DOH certification issued to petitioner. Read together with the court’s decision and the decretal paragraph enjoining respondents from interfering with petitioner’s business opportunities or employment, it appears that Supreme Court concluded that, because petitioner is certified by DOH, DEC is precluded from refusing to approve petitioner as an analytical laboratory qualified to provide services either directly to DEC or to a DEC prime contractor. We disagree. Public Health Law § 502 (1) provides that "[t]he commissioner may issue to laboratories certificates of approval covering * * * laboratory examinations, including but not limited to, specific procedures or specialties within such categories as wastewaters, potable waters, sediments, solid wastes, and air”. Pursuant to ECL 3-0119, any laboratory tests required to be performed under ECL article 27 must be conducted by a laboratory issued a DOH certificate of approval. Nothing, however, in either Public Health Law § 502 or ECL 3-0119 mandates that DEC agree to contract with a certain laboratory merely because it is certified.

Under ECL 3-0301 (2) (b), the Commissioner of DEC is empowered to "[e]nter into contracts with any person to do all things necessary or convenient to carry out the functions, powers and duties of [DEC]”. Additionally, State Finance Law [6]*6§ 138

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Cite This Page — Counsel Stack

Bluebook (online)
172 A.D.2d 1, 576 N.Y.S.2d 619, 1991 N.Y. App. Div. LEXIS 15100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nanco-environmental-services-inc-v-jorling-nyappdiv-1991.