S. T. Grand, Inc. v. City of New York

298 N.E.2d 105 (1973)

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S. T. Grand, Inc. v. City of New York

New York Court of Appeals
298 N.E.2d 105 (1973)

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  • Written by Jayme Weber, JD

Facts

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

Issue

Holding and Reasoning (Jasen, J.)

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Key Terms

  • CounterclaimA claim asserted by one party to an action against another party to an action after initiation of a lawsuit, typically by the defendant against the plaintiff.
  • Equity1. Fairness; justice. 2. The value of a property minus any mortgages or liens on it. 3. A branch of jurisprudence that arose in England as an alternative to the harsh common law, in which courts tried to determine what would be fair in a given situation instead of strictly applying law and precedent. Today in the U.S., courts of law and equity have merged for the most part, but equity still applies in situations where appropriate relief would be an injunction or specific performance instead of monetary damages or there is otherwise no remedy available at law.

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