By Leslie Gonzalez and Dave Vieser
Electrical Inspection Company Sues Lynbrook; Cites Anti-Trust law
"Lynbrook has maintained a perpetual exclusive monopoly for the benefit of a single private corporation."
Richard M. Bivone, President, Electrical Inspectors, Inc.
Attorneys for Lynbrook will be in State Supreme Court this Monday, August 21, to defend the village against a lawsuit initiated by a privately-owned electrical company seeking the right to perform electrical inspections in the village. Electrical Inspectors, Inc. of East Meadow claims it provides inspection services and certifications in full accordance with State and Federal regulations, but has been prevented from doing any inspection work in Lynbrook due to various Village statutes.
Electrical Inspectors President Richard M. Bivone accuses Lynbrook Village officials of participating in "an exclusive and perpetual franchise for the benefit of a private corporation", and claims that Lynbrook's current Code of Electrical Standards, which prevents them from doing business in Lynbrook, is in violation of The Sherman Anti-Trust Act and The Donnelly Act, its New York State counterpart. Under current village statutes, the New York Board of Fire Underwriters is the only firm permitted to perform electrical inspections in the Village.
The services are especially important now since, like most municipalities, Lynbrook requires property owners having construction, remodeling and/or renovation work done to provide inspection certificates to its Building Department verifying that any electrical work has been completed safely and properly. With the surge in recent years within the home improvement industry, as well as many business modifications and additions in the village, the number of inspections has been on the rise.
The lawsuit specifically questions the wording of several sections of village law, dating back to 1967, which call for only one firm to perform electrical inspections, and designates the New York Board of Fire Underwriters Electrical Bureau as that firm.
Lynbrook Village Attorney Peter Ledwith agrees that the wording of the ordinances is well outdated, and says that motions have been made to change them. He explains that at the time the laws were first introduced, the predecessor ordinance mandated only one inspection company because there was only one such company in 1967.
However, in response to the other charges levied in the lawsuit, Mr. Ledwith defends Lynbrook's practice of having only one inspection company at a time. Referring to the issue as "quality-enforcement", he explained that, with only one company permitted to perform inspections, "it is they, and only they" who must then answer to both consumers and the Village Board regarding their procedures and inspections, thereby reducing confusion as to whose inspection work is being questioned.
However, Electrical Inspectors, Inc. considers the laws to be "in bad faith" without intention to authorize competition. The company has applied numerous times since 1994 to perform inspections in Lynbrook, most recently last Spring, all without success. They complain that the current legislation "compels it's residents to hire and pay for services without the benefit of open competition." The court papers cite a similar ordinance which was declared unfair and repealed by the Town of Islip.
Electrical Inspectors, Inc. further states that the current legislation poses a restriction of the public's right to choose from and contract with equally competent electrical inspection agencies. Electrical Inspectors, Inc. has been authorized by more than ninety municipalities in Nassau and Suffolk Counties, including the Towns of Babylon, Brookhaven, Hempstead, North Hempstead, Huntington, Oyster Bay, and Smithtown; the Cities of Glen Cove and Long Beach. Electrical Inspectors is also unsatisfied with the Village's selection process. In it's petition, the company accuses Lynbrook of not properly soliciting for or inviting proposals from area competitors. Lynbrook Village published a legal notice on February 24th requesting proposals from competitors for the appointment of a single agency to a two-year term, to begin July 1, 2000. According to the Village attorney, only two companies responded to the advertisement.
Electrical Inspectors, Inc. applied and appeared before the board on April 3rd. According to Village Attorney Peter Ledwith, Lynbrook's selection panel consisted of three electrical inspectors and Buildings Superintendent Louis Bello. But in appointing the Superintendent to participate in the recommendation, Electrical Inspectors claims that the Village ignored notification that the Superintendent allegedly made "violent" threats against the company in 1996. According to Electrical Inspectors, Inc., the threats were made "without just cause or rational basis", and that Mr. Bello had also threatened other electrical companies having commercial interest who previously complained against Lynbrook.
Superintendent of Buildings Louis Bello would not comment on these matters or the case, due to the pending litigation.
In response to charges that the Village and Department of Buildings Superintendent conspired with each other, Village Attorney Peter Ledwith calls the allegations "frivolous", and refers to the lawsuit as unfortunate. Believing each company had a fair opportunity, Mr. Peter Ledwith insists that the applicants were analyzed according to price and experience, and that Lynbrook's latest decision was actually drawn from a tie.
However, Electrical Inspectors, Inc. remains unsatisfied, noting that ,to date, it has not been issued a formal response explaining reasons for rejection or basis of opinion for authorization. The agency views this lack of procedure on behalf of the Village as a denial of due process rights that inhibited its company the opportunity to seek judicial review.
The case will also address the Village's allowance for the New York Board of Fire Underwriters NY Boards to use municipal office space. Such use requires public compensation according to Village Law.
In addition to the Village, the suit names Mayor Eugene Scarpato, as well as Deputy Mayor William Hendrick, and Trustees Thomas Miccio, J. Kevin Kelly and Morrey A. Forman as defendants.
