Valleylab, Inc. v. New York City Health & Hospitals Corp.

The issue on these cross-motions for summary judgment in a breach of contract action involves the liability of defendant-appellant New York City Health and Hospitals Corporation ("HHC”) on a contract which was entered into by an employee in an amount well in excess of her authority pursuant to HHC’s rules.

There is no dispute that defendant’s own rules limited the authority of its employee to enter into the subject contract or that, if those rules were properly promulgated and therefore in effect, the resulting lack of authority in the employee with whom plaintiff contracted would render the…