Anrad Construction Corp. v. State

47 Misc. 2d 998, 263 N.Y.S.2d 454, 1965 N.Y. Misc. LEXIS 1452
CourtNew York Court of Claims
DecidedOctober 7, 1965
DocketClaim No. 42846
StatusPublished
Cited by5 cases

This text of 47 Misc. 2d 998 (Anrad Construction Corp. v. State) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anrad Construction Corp. v. State, 47 Misc. 2d 998, 263 N.Y.S.2d 454, 1965 N.Y. Misc. LEXIS 1452 (N.Y. Super. Ct. 1965).

Opinion

Alexander Del Giorno, J.

This is a claim to recover for work, labor and services performed by claimant and for materials furnished by it, pursuant to the terms of a contract entered into between claimant and the State, which contract was cancelled by the State during its performance by claimant.

The contract was for the rehabilitation of the Spillway, walls and other miscellaneous work at New London, and work thereunder was commenced by claimant on August 28, 1961. In preparation for the project, claimant transported from Albany to New London concrete forms, bars, rip-rap, back hoe, compressor, storage shack and office shack.

Prior to the execution of the contract, as testified by Mr. Earl W. Scothon, associate civil engineer in charge of canal operation under the Department of Public Works, an inspection was made of the whole system, and damage at the Spillway was noted. Mr. Scothon testified that usually concrete deteriorates on the outside, remaining firm on the inside. Using a hammer, [1000]*1000he tapped from the outside, finding that there was no indication the concrete had deteriorated on the inside, and that consequently there could be rehabilitation. He stated that there are better ways to determine the conditions, such as the use of test borings, but that these borings are very expensive and were not used in this instance. During the course of the work involved herein, it was found that contrary to the normal situation, the concrete was weaker on the inside than it was on the outside. The engineer ascribes this situation to the use of inferior concrete in the first instance, although he admitted that the Spillway had existed since 1912. He testified that although he had employed this hammer test in five or six previous operations along the system, this was the first time the test proved inaccurate. On September 25, 1961, he notified the claimant to stop work because the hazardous condition of the Spillway made it inadvisable to continue. Claimant agreed to stop work temporarily, but asked for a letter confirming the instruction to stop. By letter of September 26, 1961, of the Department of Public Works, by Henry A. Cohen, director, claimant was ordered to stop work and notified that the contract was can-celled as of September 27, 1961 on the ground that the best interests of the State would be so served. The State later planned reconstruction of the project.

The State conceded that claimant was honest and did good work under the contract.

For work actually performed, materials furnished, delay time, moving on job, moving and holding EFCO forms, closing and moving from the job and general job overhead, claimant demands payment of $11,791.45, less $3,131.32 paid by the State, or a total of $8,660.13. Estimate No. 1, dated December 1, 1961, shows the amount of the contract to have been $22,825, with a percentage of completion of 15.24, or a total of $3,479.25, less 10% retained, or $347.93, leaving a balance of $3,131.32. Estimate No. 2, dated August 23, 1962, shows the amount of the contract to have been $3,479.25, percentage of completion 100% by termination, or a total of $3,479.25, less payment of $3,131.32 with a balance due of $347.93. The final estimate was issued on January 8,1963. A check for the latter amount dated January 10,1963 was sent by State to claimant, who has retained it, having neither deposited nor cashed it.

In its notice of intention, filed January 19, 1963, claimant alleges that the contract “ was terminated by the State of New York, Department of Public Works, effective September 27, 1961 and that the amounts set forth in said Alteration No. 1 and Final Estimate both are inadequate to’ compensate the [1001]*1001claimant for its loss resulting from said termination of its contract.” Damages were demanded in the sum of $12,500. The claim, filed September 19, 1963, more than eight months after accrual, alleges that ‘ ‘ the aforesaid cancellation of claimant’s contract was a breach of contract by the State of New York and claimant thereby was illegally and wrongfully prevented from fulfilling said contract to its loss and damage.” Damages were demanded in the sum of $12,500. ®

The State contends that the claim must be dismissed because it was filed more than six months after accrual and sets forth a different cause of action from that asserted in the notice of intention. The notice of intention, timely filed 11 days after accrual of the claim, was sufficient to give the officers of the State prompt notice of the damages and the surrounding circumstances in order that the matter might be investigated and the State’s liability determined. A substantial compliance with the statute is all that is required. If the claim or notice of intention is technically imperfect or inaccurate in some respects but is sufficiently definite to inform the officers of the State of the time and cause of claimant’s injuries or damages, it should be upheld. The only statutory distinction between the notice of intention and the claim itself is that in the former it is unnecessary to allege the items of damage and the amounts claimed. (Chalmers & Son v. State of New York, 271 App. Div. 699, affd. 297 N. Y. 690; Emanuele v. State of New York, 43 Misc 2d 135; Fraser v. State of New York, 26 Misc 2d 992.) The court holds that the notice of intention as filed contains all the items required to be stated in a claim under the provisions of section 11 of the Court of Claims Act and constitutes substantial compliance with that section so far as the contents of a claim are concerned. The court will deem the notice of intention as a claim, and will deem the claim, filed within two years of the date of accrual (Court of Claims Act, § 10), as an amendment which under all of the circumstances is not inconsistent with the notice of intention.

The State asserts also that claimant, by the terms of the contract, released its claim when it accepted the last payment on the contract, and that the failure of the contractor to reject the check can be construed as an acceptance of the final payment. In support of its argument, the State cites Brandt Corp. v. City of New York (14 N Y 2d 217) and Buffalo Elec. Co. v. State of New York (14 N Y 2d 453). In both of those cases the contractors had accepted the last payment proffered and thereby were held to have released any claims they possessed. The instant case is distinguishable in that the final estimate was [1002]*1002not executed and the check which was tendered as final payment was not cashed. Moreover, the fact that the notice of intention was filed within 11 days of the issuance of the final estimate is construed by the court to constitute rejection of the final payment, with the result that claimant cannot be held to have released its claim. The provisions of section 102 of the State Finance Law, cited by the State to the effect that a check still in the hands of a contractor may be cashed at any time within three years from the date of its making, thus do not apply, for the reason that the filing of the notice of intention is an affirmative act of rejection of the proffered check.

Section 3 of article XV, of the State constitution provides that 6‘ if, from any unforeseen cause, the terms of the contract shall prove to be unjust and oppressive, the superintendent of public works may, upon the application of the contractor, cancel such contract.” The State invokes this section as authority for its statement that

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Brunn v. Dowdye
59 V.I. 899 (Supreme Court of The Virgin Islands, 2013)
G & R Electrical Contractors, Inc. v. State
130 Misc. 2d 661 (New York State Court of Claims, 1985)
Schwartzberg v. State
121 Misc. 2d 1095 (New York State Court of Claims, 1983)
McBean v. Government of the Virgin Islands
19 V.I. 383 (Supreme Court of The Virgin Islands, 1983)
Pickering v. Government of the Virgin Islands
19 V.I. 271 (Virgin Islands, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
47 Misc. 2d 998, 263 N.Y.S.2d 454, 1965 N.Y. Misc. LEXIS 1452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anrad-construction-corp-v-state-nyclaimsct-1965.