This could result in huge costs for taxpayers.
The towing companies claim that “bribery and corruption” by city officials and rival towing companies caused them to lose lucrative city contracts and operating licenses, according to a newly filed $150 million lawsuit naming the city.
Runway Towing alleges in a lawsuit filed Thursday in Manhattan Supreme Court that disgraced Building Commissioner Eric Ulrich accepted cash and gifts from rival towing company magnate Michael Mazzio and then pressured another agency to put the company out of business.
The bribes were part of a $150,000 bribery scheme for which Ulrich has already been criminally charged. Accepted a bribe From Mazzio: Owner of Mike's Heavy Duty Towing, Inc.The items included cash and Mets season tickets, according to the indictment.
“Eric Ulrich accepted bribes from Michael Mazzio in exchange for supporting Michael Mazzio's towing company, damaging Runway Towing, Inc., ensuring an investigation by DCWP and revocation of its license, and enabling Michael Mazzio to regain control of New York City's highways,” the lawsuit alleges.
The lawsuit alleges that when Runway sought to renew its towing license in 2021, the Department of Consumer and Worker Protection issued a subpoena seeking extensive financial records.
Authorities found that the trucking company overcharged 237 customers a total of just under $6,000, or about $25 each.
Typically, such minor discrepancies would be dealt with with a simple fine, Runway's lawyers argue in the lawsuit.
However, Mazzio bribed Ulrich, and the agency refused to renew its contract.
A Manhattan judge ruled that the sentence was “too harsh or disproportionate to the crime so as to undermine fairness,” but the authorities appealed and the dismissal was upheld.
Runway had a fleet of 40 trucks and numerous contracts to provide towing services to the NYPD and other public agencies, but ultimately “lost $10 million in annual business and ceased operations,” court documents state.
“Government agency decisions should not be the product of corruption,” the lawsuit states.
The DCWP argues that their decision was not the result of corruption and that the unanimous decision of the Court of Appeals upheld their decision for good reason.
“DCWP is committed to holding companies like Runway Towing and Mike's Heavy Duty Towing accountable for preying on New Yorkers, and we have taken steps to prevent both companies from violating the law,” spokesman Michael Lanza said.
Many of the allegations in Runway's lawsuit are strikingly similar to those made by the Manhattan District Attorney's Office in its 2023 indictment of Ulrich, Mazzio and five others, who they say gave Ulrich money, gifts and other bribes to obtain special favors from up-and-coming politicians.
“Rather than serving the public, he used his office to benefit himself and his friends,” Bragg said at the time.
Ulrich, who pleaded not guilty earlier this month to 16 felony charges stemming from five indictments dating back to his time as a Queens borough councilman, asked the judge for a taxpayer-funded attorney, saying he could no longer afford one.
The gambler and former politician stepped down from office in November 2022.
Lawyers for the two rival towing companies did not respond to requests for comment. Ulrich could not be reached at press time, and the city's law department declined to comment on the new lawsuit.
