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New York Supreme Court rejects appeal by CEMUSA's rivals against street furniture franchise award 

21/12/2006

New York Supreme Court rejects appeal by CEMUSA's rivals against street furniture franchise award 

New York State Supreme Court Justice William A. Wetzel has rejected an appeal by Clear Channel, NBC and Decaux against the award of New York City's 20-year street furniture franchise to CEMUSA.

The plaintiffs alleged that CEMUSA is a small company, that it received favourable treatment in the definition of guaranteed monetary compensation from the scrolling panels, and that its contribution in kind was overvalued.

The judge found that the award to Cemusa was neither arbitrary nor capricious and that the City had a rational basis for its decision. The court's decision added that the New York City Department of Transport treated all parties fairly and equally and made an effort to gain the maximum input from other city agencies and interested parties.

"The hallmark of the process was its fairness and its devotion to obtaining the best possible terms for the city," the court found.

In consequence, the Court denied the petitions.

See court decision in PDF format (700KB)