Answer

    . . 

  

SUPREME COURT OF THE STATE OF NEW YORK 

COUNTY OF QUEENS 

  

- CAMPAIGN TO SAVE OUR PUBLIC HOSPITALS 
- QUEENS COALITION, an unincorporated 
association, by its member WILLIAM MALLOY, ANSWER 
CAMPAIGN TO SAVE OUR PUBLIC HOSPITALS 

- CONEY ISLAND HOSPITAL COALITION, an Index No. 10763/96 
unincorporated association, by its member PHILIP 

R. METLING, ANNE YELLIN, and MARILYN 

MOSSOP, 

Plaintiffs, 

- against - 

RUDOLPH W. GIULIANI, THE MAYOR OF THE 

CITY OF NEW YORK, NEW: YORK CITY 

HEALTH AND HOSPITALS CORPORATION, and 

NEW YORK CITY ECONOMIC DEVELOPMENT 

CORPORATION, 

Defendants. 

  

Defendants Rudolph W. Giuliani, The Mayor of the City of New York, the New 

York City Health and Hospitals Corporation ("HHC"), and the New York City Economic 

Development Corporation ("EDC"), by their attorney, Paul A. Crotty, Corporation Counsel of 

the City of New York, for their answer to the complaint herein (the "Complaint"), allege as 

follows: 

1. Deny the allegations set forth in paragraph 1 of the Complaint, except 

admit that plaintiffs purport to seek relief as alleged therein. 

2 Deny the allegations set forth in paragraph 2 of the Complaint, except 

admit that Mayor Giuliani has proposed that operation of Coney Island Hospital, Queens 

 



Hospital Center and Elmhurst Hospital Center (the "Subject Hospitals") be transferred from 

HHC to private entities. 

3: Deny the allegations set forth in paragraph 3 of the Complaint, except 

admit that plaintiffs purport to seek relief as alleged therein. 

4. Deny knowledge or information sufficient to form a belief as to the truth 

of the allegations set forth in paragraphs 4 and 5 of the Complaint, except deny that defendants 

have failed to comply with the requirements of the City Charter or that defendants’ acts have 

injured plaintiffs in the manner alleged therein. 

8. Deny knowledge or information sufficient to form a belief as to the truth 

of the allegations set forth in paragraphs 6 and 7 of the Complaint, except admit that Queens 

Hospital Center is located within the geographic area of Queens Community Board 8. 

6. Admit the allegations set forth in paragraph 8 of the Complaint. 

7. Deny the allegations set forth in paragraph 9 of the Complaint except admit 

that HHC is a public benefit corporation created pursuant to the New York city health and 

hospitals corporation act (the “HHC Act” codified at Chapter 5, §§ 7381 et seq., of the 

Unconsolidated Laws (McKinney's) (“U.L.”)), adopted in 1969, and refer the Court to U.L. 

§ 7382 for a complete and accurate statement of the purposes for which HHC was created, and 

to U.L. § 7384 for a complete and accurate statement of the manner in which the Board of 

Directors of HHC is constituted and selected. 

8. Deny the allegations set forth in paragraph 10 of the Complaint, except 

admit that EDC is a not-for-profit local development corporation created pursuant to Section 

1411 of the New York Not-for-Profit Corporation Law, that EDC performs certain economic 

development activities, and receives funds for said activities, pursuant to a contract with the 

2.  



  

City, and affirmatively state that the Mayor appoints the Chair and a majority of EDC’s Board 

of Directors. 

9. Deny the allegations set forth in paragraph 11 of the Complaint, except 

admit that there are eleven hospitals operated by HHC in the five boroughs which provide some 

or all of the services alleged in said paragraph. 

10. Deny the allegations set forth in paragraph 12 of the Complaint, except 

admit that HHC was created pursuant to the HHC Act, adopted in 1969, and respectfully refer 

the Court to the HHC Act for a complete and accurate statement of the rots for which HHC 

was created, that the City leased certain hospitals to HHC pursuant to an agreement between 

HHC and the City dated June 16, 1970 (the “Lease Agreement”), and respectfully refer the 

Court to said Lease Agreement for a complete and accurate statement of its contents. 

11. Deny the allegations set forth in paragraph 13 of the Compl, except 

admit that HHC has entered into affiliation contracts with voluntary hospitals, and respectfully 

refer the Court to said contracts for a complete and accurate statement of their contents. 

12. Deny the allegations set forth in paragraph 14 of the Complaint, and aver 

that in response to the burgeoning cost of operating an inefficient and deteriorating municipal 

health care system, Mayor Giuliani has proposed “privatizing” operation of the Subject Hospitals 

by transferring operation of said Hospitals to private entities. 

13. Deny the allegations set forth in paragraph 15 of the Complaint. 

14. Deny the allegations set forth in paragraph 16 of the Complaint, except 

admit that, as presently contemplated, privatization of the Subject Hospitals would be 

accomplished through a sub-lease between HHC and a private entity, and respectfully refer the 

Court to U.L. § 7385(6) and the complaint in The Council of the Citv of New York v. Giuliani, 
  

3 

 



  

Index No. 4897-96 (Sup. Ct. Queens Co.) for a complete and accurate statement of their 

~ contents. 

15. Deny the allegations set forth in paragraphs 17 and 18 of the Complaint. 

16. Deny the allegations set forth in paragraph 19 of the Complaint, and 

affirmatively state that formal approval by HHC’s Board of Directors for any action taken to 

date by defendants is not required and that such approval will be requested When required. 

17. Deny the allegations set forth in paragraph 20 of the Complaint, except 

admit that in 1994, EDC retained J.P. Morgan Securities, Inc. (“J.P. Morgan”), to explore the 

financial feasibility of certain privatization projects, and affirmatively state that formal approval 

by HHC’s Board of Directors for any action taken to date by defendants is not required and that 

such approval will be requested when required. 

18. Deny the allegations set forth in paragraph 21 of the Complaint, except 

admit that J.P. Morgan issued a report in which it concluded that there would be private parties 

interested in owning or operating the Subject Hospitals, that in July 1995, EDC retained J.P. 

Morgan to act as financial advisor with respect to privatization of the Subject Hospitals and, as 

contemplated by the Offering Memoranda referred to in paragraph 21 of the Complaint, 

privatization of the Subject Hospitals would be accomplished through a sub-lease between HHC 

and a private entity, respectfully refer the Court to said Offering Memoranda for a complete and 

accurate statement of their contents, and affirmatively state that formal approval by HHC for any 

action taken to date by defendants is not required and that such approval will be requested when 

required. 

 



  

19. Deny the allegations set forth in paragraph 22 of the Complaint, and 

affirmatively state that to the extent defendants failed to take the actions alleged therein they 

were under no legal obligation to do so. 

20. Deny the allegations set forth in paragraph 23 of the Complaint, except 

admit that it is defendants’ position that ULURP is not applicable to actions of HHC. 

21. Deny the allegations set forth in paragraph 24 of the Complaint. 

22. Deny the allegations set forth in paragraph 25 of the Complaint, and 

respectidly refer the Court to Article XVII of the New York State Constitution and to the HHC 

Act, U.L. § 7382, for complete and accurate statements of their contents. 

23. Deny the allegations set forth in paragraph 26 of the complaint, except 

admit that the Subject Hospitals provide care for those who are indigent or uninsured, 

respectfully refer the Court to Public Health Law § 2805-b for a complete and accurate statement 

of its contents, and aver that plaintiffs’ allegations with respect to a “disproportionate amount” 

of care are too vague to permit an answer. 

24. Deny the allegations set forth in paragraph 27 of the Complaint, except 

admit that Queens and Elmhurst Hospital Centers are the only acute care hospitals operated by 

HHC in Queens, and that, upon information and belief, Coney Island Hospital serves a 

population of approximately 750,000. 

25, Deny the allegations set forth in paragraph 28 of the Complaint, except 

admit that plans were created relating to the upgrading of Queens Hospital Center, but that there 

is no current intent to implement them. 

 



  

26. Deny the allegations set forth in paragraph 29 of the Complaint, and 

affirmatively aver that any action taken by defendants with respect to the privatization of the 

Subject Hospitals will undergo the public review process mandated by law. 

27. Deny the allegations set forth in paragraphs 30, 31, and 32 of the 

Complaint, and respectfully refer the Court to section 197-b of the City Charter for a complete 

DES, Y. ST 

and accurate statement of its contents. 

28. Deny the allegations set forth in paragraphs 33, 34, and 35 of the 

Complaint, and respectfully refer the Court to section 197-c of the City Charter for a complete 

and accurate statement of its contents. 

29. Deny the allegations set forth in paragraph 36 of the complaint, except 

admit that it is defendants’ position that ULURP is not applicable to actions of HHC. 

AS AND FOR A FIRST DEFENSE 

30. City Charter § 197-b provides in pertinent part: 

a. Advance notice of all preliminary and final plans 

of public agencies and public benefit corporations or 

of private agencies, entities or developers filed with 

the city that relate to the use, development or 

improvement of land subject to city regulation shall 

be given to the affected community board or boards 
and the office of the affected borough president . . 

b. Copies of (1) all requests for proposals and other 
solicitations of proposals issued by or on behalf of 

the city, whether or not issued by an agency, a local 

development corporation or other entity, and (2) all 

letters of intent executed by or on behalf of the city, 

whether or not executed by an agency, a local 
development corporation of other entity, that relate 

to the private use or disposition of city-owned land, 

shall be conveyed to the community boards where 

such land is located and the office of the borough 

<6 

 



  

president where such land is located promptly after 

issuance or execution. 

31. There are no “preliminary [or] final plans . . . filed with the city" within 

the meaning of § 197-b(a) relating to the proposed privatization of the Subject Hospitals. 

32. The only documents created to date relating to the proposed privatization 

of the Subject Hospitals which may be of the type contemplated by § 197-b(b) are the Offering 

Memoranda referred to in paragraph 18 above, and a Letter of Intent executed on or about June 

26, 1996, by HHC and a private entity, concerning the negotiation of a sublease of Coney Island 

Hospital. However, the Offering Memoranda and Letter of Intent were issued on behalf of 

HHC, not the City. 

33. In any event, as a matter of fact, the Offering Memoranda were conveyed, 

and the Letter of Intent will be conveyed, by defendants to the offices of the affected Borough 

Presidents. 

34. Similarly, the Offering Memoranda were, in fact, conveyed to 

representatives of the affected community boards. This was effected by conveying the Offering 

Memoranda to the Community Advisory Board ("CAB") established for each of the Subject 

Hospitals pursuant to the HHC Act "to consider and advise [HHC] and the hospital upon matters 

concerning the development of any plans or programs of the corporation." The membership of 

the CAB for each of the Subject Hospitals includes representatives of the affected community 

boards. 

35. The Letter of Intent will be conveyed directly to the affected community 

boards. 

 



36. There has thus been substantial compliance with both the spirit and the 

letter of Charter § 197-b(b), even assuming such provision to be applicable in this instance. 

Accordingly, plaintiffs’ First Cause of Action fails to state a cause of action and should be 

dismissed. 

AS AND FOR A SECOND DEFENSE 

37. HHC is a public benefit corporation established Pia to the HHC Act 

adopted by the State legislature and is neither the City nor a City agency. As such, it is not 

subject to City Charter procedures applicable to the City, such as the Uniform Land Use Review 

Procedure ("ULURP") set forth in Charter § 197-c. 

38. Any privatization of the Subject Hospitals will be effected through a sub- 

lease between HHC, as sub-lessor, and a private entity, as sub-lessee. It would not be an action 

taken by the City. Thus, any such transaction would not be subject to ULURP. Rather, it 

would be subject to the process and procedures specifically presiiibed by the HHC Act. ead 

imposition of additional procedures under ULURP would be inconsistent with the purposes of 

the HHC Act, which was intended, inter alia, to create a body independent of the City and not 

subject to those procedures normally applicable to the City. 

39. Accordingly, plaintiffs’ Second Cause of Action fails to state a cause of 

action and should be dismissed. 

AS AND FOR A THIRD DEFENSE 

40. Plaintiffs’ claims are neither ripe for adjudication nor appropriately the 

subject of declaratory relief.  



  

WHEREFORE, defendants request that the Complaint be dismissed in its entirety 

and that the Court grant defendants such other and further relief as is deemed just and proper. 

DATED: New York, New York 

June 28, 1996 

PAUL A. CROTTY 
Corporation Counsel of the 

City of New York a 
Attorney for Defendants 

By: Daniel Turbow 

Assistant Corporation Counsel 
100 Church Street 
New York, New York 10007 

(212) 788-0412 

 



Index No. 10763/96 
  

  

SUPREME COURT OF THE STATE OF NEW YORK 
si ; COUNTY OF QUEENS 
  
  

CAMPAIGN TO SAVE OUR PUBLIC HOSPITALS - 
QUEENS, COALITION, an unincorporated association, by 
its member WILLIAM MALLOY, CAMPAIGN TO SAVE 
OUR PUBLIC HOSPITALS - CONY ISLAND HOSPITAL 
COALITION, an unincorporated association, by its member 
PHILIP R. METLING, ANNE YELLIN, and MARILYN 3 
MOSSOP, 

Plaintiffs, 

- against - 

RUDOLPH W. GIULIANI, THE MAYOR OF THE CITY 
OF NEW YORK, NEW YORK CITY HEALTH AND 
HOSPITALS CORPORATION, and NEW YORK CITY 
ECONOMIC DEVELOPMENT CORPORATION, 

Defendants. 
  

ANSWER 

  

PAUL A. CROTTY 
Corporation Counsel of the City of New York 

Attomey for Defendants 

100 Church Street 

New York, N.Y. 10007 

Of Counsel: Daniel Turbow 
Tel: (212) 788-0412 
NYCLIS No. 96CI1000046 
  

Due and timely service is hereby admitted. 

New York, N.Y.     B03 0 0 0 eee RES 8 ee le ee ae eee ee