NEW YORK (Legal Newsline) – A nonprofit representing member associations for construction contractors, engineers and related businesses is seeking injunctive relief from a New York Metropolitan Transportation Authority (MTA) debarment statute, claiming it violates federal law.
Alliance for Fair and Equitable Contracting Today Inc. (AFFECT) filed a complaint Nov. 25 in the U.S. District Court for the Southern District of New York against MTA and its CEO Patrick Foye, alleging violation of the Contract Clause, Supremacy Clause, Dormant Commerce Clause, due process and right to petition the government.
In its complaint, AFFECT alleges the MTA's debarment statute, which was originally attached to a New York State budget bill in April, is unconstitutional and "draconian."
The regulation calls for a five-year period of debarment of a public works contractors and possibly their entities if they fail to complete a project within the contract timeframe by more than 10 percent or claim costs "deemed to be invalid by 10 percent or higher," the suit states.
"Debarment is the death penalty for a public works contractor, and not just in New York," the suit states. "A debarment by the MTA could result in debarment nationwide, given that public and private contractors throughout the country commonly inquire about bidders’ debarment history when considering project bids."
AFFECT seeks a declaration that the statute and regulations are unconstitutional and injunctive relief. It is represented by Benjamin Fleming of Hogan Lovells US LLP in New York and Neal Kumar, Catherine Stetson, Susan Cook, Joseph Gross, Michael Gendall and Kyle Druding of Hogan Lovells US LLP in Washington, D.C.
U.S. District Court for the Southern District of New York case number 1:19-CV-10894-JPO