DLA Piper successfully represents Cemusa for right to New York City’s street furniture franchise
(NEW YORK) – LAWFUEL – Law News, Law Jobs – DLA Piper US LLP has secured an important victory for Cemusa Inc. before the New York County Supreme Court, in a decision upholding Cemusa’s contract for a 20-year franchise to install and operate bus shelters, newsstands, automatic public toilets and other “street furniture” in New York City.
The $1.2 billion contract is the largest procurement ever by New York City and the largest contract that a Spanish company has ever been awarded outside of Spain.
Cemusa, a U.S. subsidiary of FCC Corp., one of Spain’s largest conglomerates, won the contract in 2005, following a lengthy municipal bidding process. In exchange for the right to sell advertising on the street furniture structures, Cemusa will pay New York approximately $1.2 billion over the life of the contract. Two of the unsuccessful bidders – Clear Channel Adshel and NBC Decaux – challenged the award and sued Cemusa and the city in New York State Supreme Court. They charged that the city’s bidding process was fatally flawed and that the city had illegally shown favoritism to Cemusa.
Following extensive briefing and motion practice and two court hearings, the court denied the contract challenges and upheld the franchise award to Cemusa. The court roundly rejected claims that Cemusa was given unfair advantages and that the process was illegal.
Tony Coles, a partner in DLA Piper’s New York City office and the lead attorney for Cemusa, said, “The court’s ruling represents an early Christmas present for Cemusa and for the City. The City can now move ahead with an important initiative, and do it with a terrific company. Cemusa was justly awarded this significant contract due to its outstanding qualifications and capabilities. The decision reinforces that.”
In addition to Coles, the New York-based team from DLA Piper included Robert Gold, Howard Schrader, Peter Sharp, Stacy Yeung and Bonny Zajac.
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