New York Post Corp. v. Moses

23 Misc. 2d 826, 204 N.Y.S.2d 44, 1960 N.Y. Misc. LEXIS 2765
CourtNew York Supreme Court
DecidedJune 28, 1960
StatusPublished
Cited by6 cases

This text of 23 Misc. 2d 826 (New York Post Corp. v. Moses) 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
New York Post Corp. v. Moses, 23 Misc. 2d 826, 204 N.Y.S.2d 44, 1960 N.Y. Misc. LEXIS 2765 (N.Y. Super. Ct. 1960).

Opinion

Louis J. Capozzoli, J.

This is a proceeding, brought under article 78 of the Civil Practice Act, for an order directing the respondents, comprising a board known as the Triborough Bridge and Tunnel Authority, to permit the petitioner, which publishes a New York City newspaper, to inspect the contract files of the Triborough Bridge and Tunnel Authority for the past 10 years, including contracts covering new construction and the retainer of engineering or consulting services, whether or not let out by competitive bidding; the records of the Authority dealing with leaves of absences granted to executive employees and outside employment of such employees; the contracts of the Authority for the past 10 years dealing with the sale or conversion of property and with the underwriting and flotation of the Authority’s bond issues; and the minutes of meetings of the Authority for the period of 10 years prior to the date of this proceeding.

The argument advanced by the petitioner is threefold. It is claimed:

(1) Respondents are under a legal duty to permit petitioner to inspect the records specified in the petition;

(2) They have no reasonable ground for refusing inspection of their records; and

(3) Their refusal to permit the petitioner to have access to their records abridges the constitutional rights of the petitioner.

As against the contention of the petitioner the essence of the argument of the respondents is that there is no law, constitutional, statutory or common law which commands them to permit the petitioner access to their records on what the respondents claim is a fishing expedition by the petitioner, who, they assert, shows no interest which would justify an inspection of these records by the petitioner.

At the outset the court believes it proper to set forth its understanding of the type of legal entity which characterizes the Triborough Bridge and Tunnel Authority, hereinafter called the “Authority”. It is a public benefit corporation, created by the Public Authorities Law, more particularly sections 552 and 552-a, A public benefit corporation, as defined in subdivision 4 of section 3 of the General Corporation Law is: “a corporation organized to construct or operate a public improvement wholly or partly within the state, the profits from which [828]*828enure to the benefit of this or other states, or to the people thereof.” The Authority was created to construct and operate designated bridges, tunnels and other facilities, including the Triborough Bridge, Bronx-Whitestone Bridge, Brooklyn Battery Tunnel, Queens-Midtown Tunnel, Battery Parking Garage, the New York Coliseum and others.

It is a vast business organization whose activities are very extensive and is not like the usual administrative public office. It is autonomous in character and is vested by the Public Authorities Law with the powers, among other things, to make contracts and execute all necessary instruments for its operations ; to make rules for the regulation of its projects and collections of tolls and other charges for the use thereof, subject to agreements with bondholders; to establish the tolls and charges to be collected, subject to agreements with bondholders, etc. (Public Authorities Law, § 553).

The Authority does not depend upon the taxing power of the city or the State and does not spend public money. It relies upon the support of private investors who purchase its bonds and other obligations and thereby supply the funds to enable the Authority to carry on its functions. Such private borrowings are repaid from tolls and other charges collected for the use of the projects.

The members of the board are appointed by the Mayor, each to serve a term of six years. The chairman is designated by the Mayor and no salary is paid to any of the members. They are removed by the Mayor only on stated charges, after a hearing. (Public Authorities Law, § 552.)

At this point the court will consider the first argument of the petitioner that respondents are under a legal duty to grant the inspection herein sought.

It is well settled that, in order to prevail under article 78 of the Civil Practice Act, the petitioner must demonstrate that it has a clear legal right to the relief. (Matter of Pruzan v. Valentine, 282 N. Y. 498; Toscano v. McGoldrick, 300 N. Y. 156.)

Even where a clear right is shown “ the court may consider by way of defense the hardship and injustice to the defendant, the conduct of the applicant and the interest of the third persons.” (Matter of Coombs v. Edwards, 280 N. Y. 361, 364.) Mandamus is an extraordinary remedy, and its issuance is to a great extent discretionary. The courts are chary to issue it so as to cause disorder and confusion in public affairs, even though there may be a strict legal right. (Matter of Andresen v. Rice, 277 N. Y. 271.) ” (Matter of Ahern v. Board of Supervisors, 7 A D 2d 538, 545, affd. 6 N Y 2d 376.)

[829]*829The petitioner urges that the Authority is conducting its affairs in secrecy and that it claims to be immune from public scrutiny. This court cannot agree. Under the law the Authority is subject to the investigative and auditing processes of certain State and city public officials, amongst them the State Commission of Investigation; the Comptroller of the State of New York; Comptroller of the City of New York; is required to submit to the Governor, the Chairman of the Senate Finance Committee, the Chairman of the Assembly Ways and Means Committee and City Comptroller within 90 days after the end of its fiscal year, a complete and detailed report covering its operations, receipts and expenditures, its assets and liabilities, including status of resources, depreciation, special or other funds, a schedule of its bonds and notes outstanding at the end of its fiscal year, etc. Additionally, under the General Bond Resolutions adopted by the Authority in connection with the issuance of its bonds, a bank trustee, designated to represent the bondholders, is authorized to investigate the financial operations and affairs of the Triborough. Also the holder or holders of not less than 5% of the principal amount of the bonds then outstanding may investigate the financial affairs and operations of the Triborough.

In view of the right of these various agencies and officials to investigate the affairs of the Authority, it is difficult to understand the petitioner’s claim that the activities of the Authority are conducted in secrecy. This court would be the first to condemn any system whereby these immense expenditures of money by the Authority, created for the benefit of the People, could be made without any right of the Peoples’ representatives to investigate the conduct of the Authority. But this court finds that is not so in this instance.

In order to sustain its claim that respondents are under a legal duty to permit this inspection, the petitioner claims, amongst other things, that it has a statutory right of inspection. The court will, therefore, examine this contention. The parties agree that the statute which created the Authority gives no right of inspection by any of its provisions, nor does it declare that the records of the Authority are public records. Petitioner relies on the provisions of section 66 of the Public Officers Law and section 51 of the General Municipal Law.

Section 66 of the Public Officers Law reads as follows:

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Bluebook (online)
23 Misc. 2d 826, 204 N.Y.S.2d 44, 1960 N.Y. Misc. LEXIS 2765, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-post-corp-v-moses-nysupct-1960.