Updates

Buffalo, NY - In a decision that will send shock-waves throughout New York State, the Third Department Appellate Division today revived a citizens' lawsuit that seeks to outlaw billions of dollars in cash grants to private firms for alleged "economic development."

The plaintiffs will hold a press conference to discuss the victory today at 5pm in front of Erie County Hall in downtown Buffalo and will gather at the Pearl St. Grille at 6pm to celebrate this rare victory of taxpayers over the political class.

The Court agreed with the plaintiffs' main contention that the State may not funnel its funds through public benefit corporations such as Empire State Development Corporation as a means to avoid the Constitution's ban on gifts to private firms.

The case now goes back to Supreme Court, Albany County where the defendants must file an answer. Should the plaintiffs win the case, the current practice of giving billions of dollars of tax money to private firms, many of which then kick back campaign donations to politicians, will abruptly end.

The case also has implications for New York State's chronic budget deficits since eliminating these illegal grants could possibly lead to a balanced budget.

James Ostrowski, a solo practitioner and tea party activist from Buffalo, New York, is counsel for the plaintiffs. Andrew Cuomo is the attorney for the numerous state defendants including Governor Paterson and Speaker Sheldon Silver. Cravath, Swain and Moore represented defendant IBM on appeal.

Ostrowski said his group will now file a class action suit against every municipality in the state that provides cash grants to private firms under a similar but separate clause in the state constitution.

Labels: Legal Issues