S. T. Grand, Inc. v. City of New York
New York Court of Appeals
298 N.E.2d 105 (1973)
The City of New York (NYC) (defendant) hired S. T. Grand, Inc. (Grand) (plaintiff) to clean the Jerome Park Reservoir. Although city contracts would usually be awarded following a bidding period, a city commissioner, James Marcus, used a public emergency exception to give Grand a contract to clean the reservoir without bidding. After Grand had completed the project, a federal court convicted Grand of bribery for agreeing to pay Marcus a kickback in exchange for the contract. Later, Grand sued NYC to recover the approximately $150,000 that had not been paid on the contract. NYC counterclaimed to recover the roughly $700,000 it had already paid, arguing that Grand’s bribery made the contract illegal and entitled the city to the return of all money paid on the contract. The appellate court held that NYC was entitled to the return of all the money NYC had paid on the contract to Grand. Grand appealed.
Rule of Law
Holding and Reasoning (Jasen, J.)
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