N.Y. Public Authorities Law § 2877: Removal of disqualification of public contractors by petition

§ 2877. Removal of disqualification of public contractors by petition.

1. Any firm, partnership or corporation which has become subject to the

cancellation or termination of a contract or disqualification to

contract on account of the refusal of a member, partner, director or

officer thereof to waive immunity when called to testify, as provided in

sections twenty-eight hundred seventy-five and twenty-eight hundred

seventy-six of this title, may, upon ten days' notice to the attorney

general and to the officer who conducted the investigation before the

grand jury or other body in which the refusal occurred, commence a

special proceeding at a special term of the supreme court held within

the judicial district in which the refusal occurred for a judgment

discontinuing the disqualification. Such application shall be in the

form of a petition setting forth grounds, including that the cooperation

by petitioner with the grand jury or other body at the time of the

refusal was such, and the amount and degree of control and financial

interest, if any, in the petitioning firm, partnership or corporation by

the member, partner, officer or director who refused to waive immunity

is such that it will not be in the public interest to cancel or

terminate petitioner's contracts or to continue the disqualification, as

provided in sections twenty-eight hundred seventy-five and twenty-eight

hundred seventy-six of this title.

A copy of the petition and accompanying papers shall be served with

the notices to be given pursuant to this subdivision.

2. Upon the filing of such petition the court may stay as to

petitioner, pending a decision upon the petition, the cancellation or

termination of any contracts resulting from such refusal upon such terms

as to notice or otherwise as may be just.

3. At least two days prior to the return day, the officer who

conducted the investigation before the grand jury or other body and the

attorney general may file answers to the petition or apply for judgment

dismissing the petition as a matter of law. On or before the return day

the petitioner may file a reply to the answer.

4. Upon the return day the court may, upon the petition and answer and

other papers filed, forthwith render such judgment as the case requires,

or if a triable issue of fact is duly raised, it shall forthwith be

tried before a court sitting without a jury or before a referee. The

provisions of statute or rule governing references in an action shall

apply to a reference under this subdivision.

5. The court shall render judgment dismissing the petition on the

merits or discontinuing the disqualification upon the ground that the

public interest would be served by its discontinuance, and granting such

other relief as to the cancellation or termination of contracts as may

be appropriate, but without costs to petitioner.