COUNCIL OF NYC v. GIULIANI


93 N.Y.2d 60 (1999)

710 N.E.2d 255

687 N.Y.S.2d 609

COUNCIL OF THE CITY OF NEW YORK et al., Respondents-Appellants, v. RUDOLPH W. GIULIANI, as Mayor of the City of New York, et al., Appellants-Respondents. CAMPAIGN TO SAVE OUR PUBLIC HOSPITALS-QUEENS COALITION, by Its Member, WILLIAM MALLOY, et al., Respondents-Appellants, v. RUDOLPH W. GIULIANI, as Mayor of the City of New York, et al., Appellants-Respondents.

Court of Appeals of the State of New York.

Decided March 30, 1999.


Attorney(s) appearing for the Case

Michael D. Hess, Corporation Counsel of New York City (Elizabeth Dvorkin, Jeffrey D. Friedlander and Stephen Louis of counsel), for appellants-respondents in the first and second above-entitled actions.

Tenzer Greenblatt, L. L. P., New York City (Ira A. Finkelstein, Edward L. Sadowsky and Gail R. Zweig of counsel), and Richard M. Weinberg for respondents-appellants in the first above-entitled action.

Barbara J. Olshansky, New York City, Robert T. Perry, Elaine R. Jones, Norman J. Chachkin and Olatunde C.A. Johnson for respondents-appellants in the second above-entitled action.

Sipser, Weinstock, Harper & Dorn, L. L. P., New York City (Richard Dorn and I. Philip Sipser of counsel) and Richard Ferreri for District Council 37, AFSCME, AFL-CIO and others, amici curiae.

Arnold S. Cohen, Long Island City, Arthur A. Baer, Allison Busch, Lourdes I. Reyes, New York City, and Raymond Brescia for Progressive Rainbow Independents for Developing Empowerment (PRIDE) and others, amici curiae.

Juan Cartagena, New York City, Arlene Kohn Gilbert and Harry Franklin for Community Service Society of New York and others, amici curiae.

Dorsey & Whitney, L. L. P., New York City (John J. Lee of counsel), for Fernando Ferrer and others, amici curiae.

Chief Judge KAYE and Judges BELLACOSA, SMITH, LEVINE, CIPARICK and ROSENBLATT concur.


OPINION OF THE COURT

WESLEY, J.

These related appeals challenge the validity of a sublease of a hospital operated by the New York City Health and Hospitals Corporation (HHC) to a for-profit entity pursuant to the Health and Hospitals Corporation Act (Act). Although several issues are raised, the threshold question is: does the Act permit the City to sublease Coney Island Hospital and turn over its operations and service obligations to PHS New York, Inc....

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