Summons and Complaint

    SUPREME COURT OF THE STATE OF NEW YORK 
COUNTY OF QUEENS 

  ——— — —————— — — ———— — ——— —— = = = = = = = = = —— = = — X 

CAMPAIGN TO SAVE OUR PUBLIC HOSPITALS - 

: QUEENS COALITION, an unincorporated 
association, by its member WILLIAM 

i MALLOY, CAMPAIGN TO SAVE OUR PUBLIC 

i HOSPITALS - CONEY ISLAND HOSPITAL 

: COALITION, an unincorporated association, INDEX No. [0763[9¢ 
: by its member PHILIP R. METLING, ANNE 

: YELLIN, and MARILYN MOSSOP, DATE FILED 5/15 (9¢ 
] 

i Plaintiffs, VENUE BASIS: 
| CPLR 504 
i - against - 

: RUDOLPH W.GIULIANI, THE MAYOR OF THE SUMMONS RK Iz 
: CITY OF NEW YORK, NEW YORK CITY HEALTH En vo Thy 

; AND HOSPITALS CORPORATION, and NEW ~- =i 

YORK CITY ECONOMIC DEVELOPMENT ou. hia 
] CORPORATION, om 

Defendants. —- =D 

mr eee X ow 1 

To the above-named defendants: 

YOU ARE HEREBY SUMMONED to answer the Complaint in this 

action, and to serve a copy of your answer on the attorneys for 

plaintiffs within twenty (20) days of the day of service (or 

within thirty (30) days of the completion of service where 

services is made in any other manner than personal delivery 

within New York State); and in case of your failure to appear or 

answer, judgment will be taken against you by default for the 

relief demanded in the complaint. 

DATED: New York, New York 
May /5 , 1996 

KENNETH KIMERLING 

PUERTO RICAN LEGAL DEFENSE & 

EDUCATION FUND, INC. 

va 99 Hudson St. 
1 AWN New York, N.Y. 10013 

212-219-3360 

 



  

TO: 

Rudolph W. Giuliani 
Mayor of the City of New York 
City Hall 
New York, N.Y. 10007 

Paul A. Crotty 
Corporation Counsel of the 

City of New York 
100 Church Street 
New York, N.Y. 10007 

New York City Health and 
Hospitals Corporation 

125 Worth Street 
New York, N.Y. 10013 

Corporation 

ELAINE R. JONES 

Director-Counsel 
MARIANNE ENGELMAN LADO 
RACHEL D.GODSIL 
NAACP LEGAL DEFENSE & EDUCATIONAL 
FUND, INC. 
99 Hudson St. 

New York, New York 10013 
212-219-1900 

BARBARA OLSHANSKY 
CENTER FOR CONSTITUTIONAL RIGHTS 
666 Broadway 
New York, N.Y. 10012 
212-664-6464 

ATTORNEYS FOR PLAINTIFFS 

New York City Economic Development 7 sh = To 

110 Williams Street 
New York, N.Y. 10038 

$6, RYT || 9) iy 

 



  

  
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, CAMPAIGN TO SAVE OUR PUBLIC 

HOSPITALS - CONEY ISLAND HOSPITAL 

COALITION, an unincorporated association, INDEX NO. /0763 [94 
| by its member PHILIP R. METLING, ANNE 
| YELLIN, and MARILYN MOSSOP, DATE FILED 5/15(9¢ 

Plaintiffs, VENUE BASIS: 
CPLR 504 

- against - 

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

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Plaintiffs Campaign To Save Our Public Hospitals, etc., by 

their attorneys the Puerto Rican Legal Defense & Education Fund, 

Inc., the NAACP Legal Defense & Educational Fund, Inc., and the 

Center for Constitutional Rights, for their complaint allege as 

follows: 

NATURE OF THE CASE 

1. This is an action for declaratory relief to declare that 

pursuant to provisions of the New York City Charter the 

defendants are subject to public comment and review as they 

proceed along a plan to sell the public health care system of the 

City of New York to the highest bidder. 

2. As a first step in the privatization effort, the 

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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, CAMPAIGN TO SAVE OUR PUBLIC 

HOSPITALS - CONEY ISLAND HOSPITAL 

COALITION, an unincorporated association, INDEX No. [0763 [94 
by its member PHILIP R. METLING, ANNE 

YELLIN, and MARILYN MOSSOP, DATE FILED 5 [IS [9¢ 

Plaintiffs, VENUE BASIS: 
CPLR 504 

- against - 

RUDOLPH W.GIULIANI, THE MAYOR OF THE SUMMONS 

CITY OF NEW YORK, NEW YORK CITY HEALTH 

AND HOSPITALS CORPORATION, and NEW 

YORK CITY ECONOMIC DEVELOPMENT 

CORPORATION, 

Defendants. 

To the above-named defendants: 

YOU ARE HEREBY SUMMONED to answer the Complaint in this 

action, and to serve a copy of your answer on the attorneys for 

plaintiffs within twenty (20) days of the day of service (or 

within thirty (30) days of the completion of service where 

services is made in any other manner than personal delivery 

within New York State); and in case of your failure to appear or 

answer, judgment will be taken against you by default for the 

relief demanded in the complaint. 

DATED: New York, New York 
May /5 , 1996 

KENNETH KIMERLING 

PUERTO RICAN LEGAL DEFENSE & 

EDUCATION FUND, INC. 

99 Hudson St. 

New York, N.Y. 10013 

212-219-3360 

 



TO: 

Rudolph W. Giuliani 
Mayor of the City of New York 
City Hall 
New York, N.Y. 10007 

Paul ‘A, Crotty 
Corporation Counsel of the 

City of New York 
100 Church Street 
New York, N.Y. 10007 

New York City Health and 
Hospitals Corporation 

125 Worth Street 
New York, N.Y. 10013 

ELAINE R. JONES 

Director-Counsel 
MARIANNE ENGELMAN LADO 

RACHEL D.GODSIL 

NAACP LEGAL DEFENSE & EDUCATIONAL 

FUND, INC. 
99 Hudson St. 

New York, New York 10013 
212-219-1900 

BARBARA OLSHANSKY 
CENTER FOR CONSTITUTIONAL RIGHTS 
666 Broadway 
New York, N.Y. 10012 
212-664-6464 

ATTORNEYS FOR PLAINTIFFS 

New York City Economic Development 
Corporation 

110 Williams Street 
New York, N.Y. 10038 

 



    

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, CAMPAIGN TO SAVE OUR PUBLIC 

HOSPITALS - CONEY ISLAND HOSPITAL 

COALITION, an unincorporated association, INDEX NO. /0743 [94 
by its member PHILIP R. METLING, ANNE 
YELLIN, and MARILYN MOSSOP, DATE FILED 5/1196 

Plaintiffs, VENUE BASIS: 

CPLR 504 

- against - 

RUDOLPH W.GIULIANI, THE MAYOR OF THE COMPLAINT 

CITY OF NEW YORK, NEW YORK CITY HEALTH 

AND HOSPITALS CORPORATION, and NEW 

YORK CITY ECONOMIC DEVELOPMENT 

CORPORATION, 

Defendants. 

Plaintiffs Campaign To Save Our Public Hospitals, etc., by 

their attorneys the Puerto Rican Legal Defense & Education Fund, 

Inc., the NAACP Legal Defense & Educational Fund, Inc., and the 

Center for Constitutional Rights, for their complaint allege as 

follows: 

NATURE OF THE CASE 

1. This is an action for declaratory relief to declare that 

pursuant to provisions of the New York City Charter the 

defendants are subject to public comment and review as they 

proceed along a plan to sell the public health care system of the 

City of New York to the highest bidder. 

2. As a first step in the privatization effort, the 

 



    

defendants have plans to "sell" through long term leases three 

public hospitals: Queens Hospital Center, Elmhurst Hospital 

Center and Coney Island Hospital. However, they have no 

intention of allowing for public scrutiny of these deals. 

3. This action seeks a declaratory judgment declaring that 

defendants, the Mayor of New York, Rudolph W. Giuliani ("Mayor"), 

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

New York City Economic Development Corporation ("EDC") must: 

a. submit their plans for privatization and proposals 

for these "sales" to the New York City Planning Commission, the 

affected community boards and the Borough Presidents of Brooklyn 

and Queens pursuant to § 197-b of the New York City Charter; and, 

b. submit the contracts for "sale" for review and 

approval under the Uniform Land Use Review Procedure ("ULURP") 

pursuant to § 197-c of the New York City Charter. 

THE PARTIES 

4. Plaintiff Campaign to Save our Public Hospitals -- 

Queens Coalition by William Malloy, a member, is an 

unincorporated association open to all residents of the Borough 

of Queens. It is comprised of approximately 250 residents - 

homeowners, clergy members, community activists, health care 

workers, and senior citizens - living and working in the areas 

served by Queens Hospital Center and Elmhurst Hospital Center. 

Coalition members depend on these hospitals for their health care 

or represent congregations whose members use the hospitals on a 

regular basis. The residents and homeowners represented by the 

 



    

Coalition also have an interest in who leases the hospitals in 

their communities and how the hospitals and land they are built 

on will be used. The hospitals are also major employers, and 

local businesses rely upon the income from hospital employees as 

well as the monies spent by patients and visitors. Defendants’ 

failure to comply with the City Charter deprives the Coalition 

and its members of procedural rights to review and comment upon 

the decision to dispose of two major City-owned properties 

provided by the ULURP process. The Coalition sues on behalf of 

itself and its members. 

5. Plaintiff Campaign to Save our Public Hospitals -- the 

coney Island Hospital Coalition, by Philip R. Metling, a member, 

is an unincorporated association open to all residents of the 

Coney Island community. It is comprised of approximately 200 

residents - homeowners, clergy members, community activists, 

business owners, health care workers, and senior citizens - 

living and working in the area served by Coney Island Hospital 

Center. Coalition members depend on this hospital for their 

health care or represent congregations whose members use the 

hospitals on a regular basis. The residents and homeowners 

represented by the Coalition also have an interest in who leases 

the hospital in their community and how the hospital and land it 

is built on will be used. The hospital is also a major employer 

and local businesses rely upon income from hospital employees as 

well as the monies spent by patients and visitors. Defendants’ 

failure to comply with the City Charter deprives the Coalition 

 



    

and its members of procedural rights to review and comment upon 

the decision to dispose of two major City-owned properties 

provided by the ULURP process. The Coalition sues on behalf of 

itself and its members. 

6. Plaintiff Anne Yellin is a member of the Coney Island 

Coalition. She and her family have used the services of Coney 

Island Hospital for many years. She has an interest in the use 

of the hospital and its land by its purchaser. 

7. Plaintiff Marilyn Mossop lives near Queens Hospital 

Center and she and her family have used the hospital's services 

on many occasions over the past 30 years. Plaintiff Mossop is a 

member of Community Board 8, the Board that would review the 

proposed sale of Queens Hospital Center under the ULURP 

procedures. She has an interest in the use of the hospital and 

its land, particularly on whether existing plans for renovation 

and reconstruction will be pursued. 

8. Defendant Mayor is the Chief Executive Officer of the 

City of New York ("City"). 

9. Defendant HHC is a public benefit corporation created by 

state law in 1970 to assume the responsibility for running the 

public hospital system of the City. McKinney's Unconsolidated 

Laws § 7381 et seq. The majority of Board members are appointed 

by the Mayor. 

10. Defendant EDC is a not-for-profit corporation 

established as a development corporation for the City to engage 

in economic development matters and privatization projects. It 

 



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is funded pursuant to a contract by the City Budget. The 

majority of Board members are appointed by the Mayor and the 

President of the Board serves at the pleasure of the Mayor. 

STATEMENT OF FACTS 

The City's Public Hospitals 
  

11. The public hospitals in the City were built and 

operated to provide inpatient, outpatient, and skilled nursing 

care to the residents of the City. There are eleven acute care 

facilities spread over the five boroughs of the City. 

12. In 1970, HHC was established to allow for independent 

financing of hospital construction and maintenance and to 

facilitate the private management of the professional care in the 

hospitals. Unconsolidated Laws § 7381 et seq. All of the 

hospitals and the property on which they stand were leased by the 

City to HHC for $1. 

13. HHC has entered into Affiliation Contracts with private 

hospitals (many of them teaching hospitals with medical schools) 

or private medical groups pairing these private hospitals or 

medical corporations with the public hospitals. Under these 

contracts the private entities provide and manage the 

professional care in the public hospitals. 

The PRIVATE Privatization of the Public Hospitals 
  

14. The Mayor has decided to privatize the public hospitals 

although the City admits that there would be no savings of City 

money and although the hospitals are already managed by private 

hospitals or medical corporations.  



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- 

15. The Mayor's privatization plan is called the Asset 

Disposition Program. 

16. The first three hospitals to be "sold" are the Queens 

Hospital Center, the Elmhurst Hospital Center and the Coney 

Island Hospital (the "target hospitals"). The "sale" of these 

targeted hospitals will be through 99 year subleases from HHC to 

a private hospital. The lease is subject to City regulation and 

must be approved by the City Council. See Unconsolidated Laws § 

7385(6). (The matter of the Council's approval as well as the 

Council's right to approve the contracts under §197-c of the City 

Charter is currently under litigation in New York State Supreme 

court, The Council of the City of New York v. Giuliani, Index No. 
  

4897-96 (Queens County)). 

17. The Mayor has refused to allow for discussion and 

review of his plan to "sell" the target hospitals even by the 

Board of HHC. He has been able to proceed in private, without 

discussion and review, because the Presidents of the Boards of 

the HHC and EDC are accountable only to the Mayor and, thus, 

subject to his control. 

18. The Mayor as well has refused to allow the 

representatives of the citizens of the City (the local community 

boards, the borough presidents, and the City Council) to 

undertake their review of these plans as is their right under the 

City Charter. 

19. The HHC Board has never approved the "sale" of the 

target hospitals through 99 year leases.  



    

20. The Mayor has put the "sale" of these hospitals into 

the hands of the EDC, an entity controlled by the Mayor. In 

August 1994 the EDC without consultation and approval of the 

Board of HHC retained a private firm, J.P. Morgan Securities, 

Inc., to act as financial advisor for the sale. 

21. Following a report by this private firm that 

recommended the sale, the EDC entered into a further contract 

with the private firm to have the latter prepare proposals to 

"sell" the hospitals. These proposals, each called "Offering 

Memorandum," were distributed to a secret list of potential 

purchasers to allow them to submit bids on these hospitals. 

Neither the proposals nor the list of bidders were approved by 

the HHC. Under the contract with the private firm, the private 

firm will negotiate the terms of the final "sale" with the EDC, 

not the HHC, retaining the right to accept or reject these terms. 

22. Furthermore, neither the plan for the "sale" of the 

hospitals nor the requests for bids were filed with the New York 

City Planning Commission nor distributed to the affected 

community boards or the Borough Presidents in Brooklyn and 

Queens. 

23. As stated above, the Mayor has contended that he does 

not have to submit even the final "sales" for public review and 

approval under ULURP. 

The Public's Access to Health Care 
  

24. The Mayor's private plan to privatize City hospitals 

puts at risk the public's access to health care in the City, 

 



    

particularly the health care of the indigent and uninsured. 

25. The public hospitals are established and operated in 

furtherance of the City's constitutional requirement to provide 

for the health and mental health care of its residents, 

especially the needy. New York State Constitution, Article 17 §§ 

1, 3, and 4. The law that established HHC specifically 

recognized the role of the public hospitals "for the provision 

and delivery of high quality, dignified and comprehensive care 

and treatment for the ill and infirm, particularly to those who 

can least afford such services." Unconsolidated Laws § 7382. 

26. The public hospitals, including the target hospitals, 

provide a disproportionate amount of the care for those who are 

indigent or uninsured. Private hospitals are just that -- 

"private." Under state law, private hospitals may turn away the 

uninsured and underinsured except in cases of emergency need for 

hospitalization. Public Health Law § 2805-b. 

27. Queens and Elmhurst Hospital Centers are the only 

public acute care facilities in Queens. If they are privatized, 

there will be no facility in Queens that is required under state 

law to provide non-emergent care to the indigent or uninsured. 

Similarly, Coney Island Hospital is the largest facility in South 

Brooklyn, serving a population of 750,000. The privatization of 

this targeted hospital may result in the lack of care for many 

within its catchment area unable to afford private care. 

28. Queens Hospital Center has existing plans for 

renovation and reconstruction. The "sale" of the hospital to a 

 



    

private hospital may result in a delay or cancellation of those 

much needed repairs and modernization. 

29. Plaintiffs, and other members of the public whose care 

is at stake, have the right under the City Charter to have their 

elected representatives and their local community boards review 

and approve or reject the Mayor's plans for privatization. 

FIRST CAUSE OF ACTION 

30. Defendants are required to submit their plans for the 

"sale" through long term leases of the targeted hospitals, 

including their requests for proposals to the City Planning 

Commission and distribute them to the affected community boards 

and borough presidents pursuant to § 197-b of the City Charter. 

31. The City Charter provides: 

§ 197-b. Notification of plans and proposals. 

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, provided that 
exceptions may be made in matters of no 
appreciable public concern. 

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 or 
other entity, that relate to the private use 
or the disposition of city-owned land, shall 
be conveyed to the community boards where 
such land is located and the office of the 

9 

 



    

borough president where such land is located 
promptly after issuance or execution. 

§ 197-b New York City Charter (1995). 

32. Defendants have failed to comply with § 197-b of the 

Charter. 

SECOND CAUSE OF ACTION 

33. Defendants are required to submit their proposed 

contracts for the "sale" of the targeted hospitals for review by 

affected and interested Community Boards, the Borough Presidents 

of Brooklyn and Queens, the Department of City Planning and 

review and approval by the New York City Council under the 

Uniform Land Use Review Procedures, City Charter § 197-c. 

34. The City Charter provides in pertinent part: 

§ 197-c. Uniform land use review procedure. a. Except as 

otherwise provided in this charter, applications by any 
person or agency for changes, approvals, contracts, 

consents, permits or authorization thereof, respecting the 

use, development or improvement of real property subject to 

city regulation shall be reviewed pursuant to a uniform 
review procedure in the following categories: 

* * * 

(10) Sale, lease (other than the lease of office space), 

exchange, or other disposition of the real property of the 
City... ov. 

§ 197-c New York City Charter (1995). 

35. ULURP is a mechanism for ensuring community, borough, 

and City Council participation in the sale, lease, exchange or 

other disposition of city property. This participation occurs 

through the express requirements of public hearings and review 

provided by the Charter to affected Community Boards, Borough 

Presidents, the Department of City Planning, and the City 

10 

 



    

Council. § 197-c (e) & (f) New York City Charter (1995). 

36. Defendants have no intention of complying with the 

requirements of § 197-c of the City Charter. 

REQUEST FOR RELIEF 

WHEREFORE plaintiffs respectfully request that this Court 

issue a declaratory judgment pursuant to Article 30 of the CPLR 

DECLARING that: 

a. defendants have violated § 197-b of the City Charter by 

failing to submit their plans for privatization of the 

target hospitals and their requests for proposals to the New 

York City Planning Commission and to the affected community 

boards and borough presidents; and 

b. defendants are required under § 197-c, the Uniform Land 

Use Review Procedure, of the City Charter to submit their 

contracts for lease of the target hospitals for review and 

approval; and 

ORDERING such other and further relief as is just and proper 

including costs and disbursements. 

DATED: New York, New York 
May /5, 1996 

RESPECTFULLY SUBMITTED, 

KENNETH KIMERLING 
PUERTO RICAN LEGAL DEFENSE & 

EDUCATION FUND, INC. 
99 Hudson St. 
New York, N.Y. 10013 
212-219-3360 

11 

 



    

ELAINE R. JONES 

Director-Counsel 
MARIANNE ENGELMAN LADO 

RACHEL D.GODSIL 

NAACP LEGAL DEFENSE & EDUCATIONAL 

FUND, INC. 

99 Hudson St. 

New York, New York 10013 

212-219-1900 

BARBARA OLSHANSKY 
CENTER FOR CONSTITUTIONAL RIGHTS 
666 Broadway 
New York, N.Y. 10012 
212-664-6464 

ATTORNEYS FOR PLAINTIFFS 

12 

 



¢ . 
be 3 

SUPREME COURT OF THE STATE OF NEW YORK 
COUNTY OF QUEENS 

  

  
-—————— — —— —— — — — — —— — = — — = —— —— = —— — — X 

CAMPAIGN TO SAVE OUR PUBLIC HOSPITALS = 

QUEENS COALITION, an unincorporated 

association, by its member WILLIAM 
MALLOY, CAMPAIGN TO SAVE OUR PUBLIC 

HOSPITALS - CONEY ISLAND HOSPITAL 

COALITION, an unincorporated association, INDEX NO. 
by its member PHILIP R. METLING, ANNE 

YELLIN, and MARILYN MOSSOP, DATE FILED 

Plaintiffs, VENUE BASIS: 

CPLR 504 

- against - 

RUDOLPH W.GIULIANI, THE MAYOR OF THE SUMMONS & 

CITY OF NEW YORK, NEW YORK CITY HEALTH COMPLAINT 

AND HOSPITALS CORPORATION, and NEW 

YORK CITY ECONOMIC DEVELOPMENT 

CORPORATION, 

Defendants. 

—— ——— — —— — — — — TW = = = == = = = = —— = X 

KENNETH KIMMERLING 

PUERTO RICAN LEGAL DEFENSE & 

EDUCATION FUND, INC. 

99 Hudson St. 

New York, N.Y. 10013 

212-219-3360 

ELAINE R. JONES 
Director-Counsel 
MARIANNE ENGELMAN LADO 
RACHEL D.GODSIL 
NAACP LEGAL DEFENSE & EDUCATIONAL 
FUND, INC. 
99 Hudson St. 

New York, New York 10013 
212-219-1900 

BARBARA OLSHANSKY 
CENTER FOR CONSTITUTIONAL RIGHTS 
666 Broadway 
New:York, N.Y. 10012 
212-664-6464 

ATTORNEYS FOR PLAINTIFFS