New York City lawsuit still has some loose ends
New York City lawsuit still has some loose ends
The complete judge's finding on the New York City lawsuit, recently won by the Hunts Point wholesale fresh produce market, will not be released until late May or early June. Even when the findings are released, another part of the suit will still not be resolved until this summer.
Myra Gordon, executive administrative director of the New York Hunts Point Terminal Cooperative Inc., which is the management association running the Hunts Point market, said that there were seven points in the lawsuit, which was filed early this year. The market won the first point, which was that New York City was unfair in its bidding procedure to lease a huge cold storage warehouse adjacent to the Hunts Point market. Ms. Gordon said that New York State Supreme Court Judge Lucy Billings threw out five points in the lawsuit. The seventh point of the lawsuit was that New Yorks Business Integrity Commission has failed to regulate the 32 produce companies located in the South Bronx near but outside the Hunts Point market. Market operators feel that the Business Integrity Commission carefully scrutinizes them while those outside the market gates need not comply with the same standards.
Ms. Gordon indicated that Judge Billings will address this seventh point of the lawsuit in another hearing in June or early July.
Ms. Gordon also said that some of these issues may be discussed at her cooperatives annual meeting on June 13.
In the first part of the lawsuit, which was won by the market, the judge ruled that the citys request for proposal on leasing the warehouse, which was won by Baldor Specialty Foods Inc., also based in the Bronx, was unfairly executed. After the mid-May decision, the city was left with the choice of appealing the decision or putting the warehouse up for rebid. This warehouse, which was suddenly vacated last July by The Great Atlantic & Pacific Tea Co. Inc. in Montvale, NJ, is immediately outside the back gate of the Hunts Point market. The market operators contend that the city should have given them a better chance to compete for the property, which would be enormously beneficial to the market. The intention would be to envelope the building in an expansion project. The city gave only a week-long window to bid on the property, and Baldor bid three times as much as the market for the facility.
Commenting on the trial, Kevin Murphy, chairman of Baldor Specialty Foods Inc., told The Produce News, "Baldor is deeply disappointed with the decision. We made a proposal for the A&P site which was beneficial for the Bronx and for the entire city of New York. The Hunts Point Terminal Market, on the other hand, made a proposal requiring $400 million of taxpayer financing, which was beneficial to no one but the merchants in the market."
Terri Sasanow, senior counsel for the Commercial & Real Estate Litigation Division of the New York City Law Department, was the defense attorney for the city in the losing effort. We are disappointed in the judges preliminary rulings made in court on May 16. We believe that EDCs decision-making processes were fair and legal. Once we receive the judges written decision, we will consider all our legal options.
The attorney representing the market, Randy Mastro of Manhattan-based Gibson, Dunn & Crutcher LLP, said May 19, All my clients asked for was a fair competition. Now the courts ruling will see to it there is a fair competition. This vindicates my clients and serves the public interest.
Myra Gordon, executive administrative director of the New York Hunts Point Terminal Cooperative Inc., which is the management association running the Hunts Point market, said that there were seven points in the lawsuit, which was filed early this year. The market won the first point, which was that New York City was unfair in its bidding procedure to lease a huge cold storage warehouse adjacent to the Hunts Point market. Ms. Gordon said that New York State Supreme Court Judge Lucy Billings threw out five points in the lawsuit. The seventh point of the lawsuit was that New Yorks Business Integrity Commission has failed to regulate the 32 produce companies located in the South Bronx near but outside the Hunts Point market. Market operators feel that the Business Integrity Commission carefully scrutinizes them while those outside the market gates need not comply with the same standards.
Ms. Gordon indicated that Judge Billings will address this seventh point of the lawsuit in another hearing in June or early July.
Ms. Gordon also said that some of these issues may be discussed at her cooperatives annual meeting on June 13.
In the first part of the lawsuit, which was won by the market, the judge ruled that the citys request for proposal on leasing the warehouse, which was won by Baldor Specialty Foods Inc., also based in the Bronx, was unfairly executed. After the mid-May decision, the city was left with the choice of appealing the decision or putting the warehouse up for rebid. This warehouse, which was suddenly vacated last July by The Great Atlantic & Pacific Tea Co. Inc. in Montvale, NJ, is immediately outside the back gate of the Hunts Point market. The market operators contend that the city should have given them a better chance to compete for the property, which would be enormously beneficial to the market. The intention would be to envelope the building in an expansion project. The city gave only a week-long window to bid on the property, and Baldor bid three times as much as the market for the facility.
Commenting on the trial, Kevin Murphy, chairman of Baldor Specialty Foods Inc., told The Produce News, "Baldor is deeply disappointed with the decision. We made a proposal for the A&P site which was beneficial for the Bronx and for the entire city of New York. The Hunts Point Terminal Market, on the other hand, made a proposal requiring $400 million of taxpayer financing, which was beneficial to no one but the merchants in the market."
Terri Sasanow, senior counsel for the Commercial & Real Estate Litigation Division of the New York City Law Department, was the defense attorney for the city in the losing effort. We are disappointed in the judges preliminary rulings made in court on May 16. We believe that EDCs decision-making processes were fair and legal. Once we receive the judges written decision, we will consider all our legal options.
The attorney representing the market, Randy Mastro of Manhattan-based Gibson, Dunn & Crutcher LLP, said May 19, All my clients asked for was a fair competition. Now the courts ruling will see to it there is a fair competition. This vindicates my clients and serves the public interest.
