Section 2877. Removal of disqualification of public contractors by petition

1.  Any firm, partnership or corporation which has become subject to the
  cancellation  or  termination  of  a  contract  or  disqualification  to
  contract  on  account  of  the refusal of a member, partner, director or
  officer thereof to waive immunity when called to testify, as provided in
  sections twenty-eight  hundred  seventy-five  and  twenty-eight  hundred
  seventy-six  of  this  title, may, upon ten days' notice to the attorney
  general and to the officer who conducted the  investigation  before  the
  grand  jury  or  other  body  in  which the refusal occurred, commence a
  special proceeding at a special term of the supreme  court  held  within
  the  judicial  district  in  which  the  refusal occurred for a judgment
  discontinuing the disqualification. Such application  shall  be  in  the
  form of a petition setting forth grounds, including that the cooperation
  by  petitioner  with  the  grand  jury  or other body at the time of the
  refusal was such, and the amount and degree  of  control  and  financial
  interest, if any, in the petitioning firm, partnership or corporation by
  the  member,  partner, officer or director who refused to waive immunity
  is such that it will  not  be  in  the  public  interest  to  cancel  or
  terminate petitioner's contracts or to continue the disqualification, as
  provided  in sections twenty-eight hundred seventy-five and twenty-eight
  hundred seventy-six of this title.
    A copy of the petition and accompanying papers shall  be  served  with
  the notices to be given pursuant to this subdivision.
    2.  Upon  the  filing  of  such  petition  the  court  may  stay as to
  petitioner, pending a decision upon the petition,  the  cancellation  or
  termination of any contracts resulting from such refusal upon such terms
  as to notice or otherwise as may be just.
    3.  At  least  two  days  prior  to  the  return  day, the officer who
  conducted the investigation before the grand jury or other body and  the
  attorney  general may file answers to the petition or apply for judgment
  dismissing the petition as a matter of law. On or before the return  day
  the petitioner may file a reply to the answer.
    4. Upon the return day the court may, upon the petition and answer and
  other papers filed, forthwith render such judgment as the case requires,
  or  if  a  triable  issue  of fact is duly raised, it shall forthwith be
  tried before a court sitting without a jury or  before  a  referee.  The
  provisions  of  statute  or rule governing references in an action shall
  apply to a reference under this subdivision.
    5. The court shall render judgment  dismissing  the  petition  on  the
  merits  or  discontinuing  the disqualification upon the ground that the
  public interest would be served by its discontinuance, and granting such
  other relief as to the cancellation or termination of contracts  as  may
  be appropriate, but without costs to petitioner.