Belmar Contracting Co. v. State

110 Misc. 429
CourtNew York Court of Claims
DecidedFebruary 15, 1920
DocketClaim No. 15187
StatusPublished
Cited by3 cases

This text of 110 Misc. 429 (Belmar Contracting Co. 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
Belmar Contracting Co. v. State, 110 Misc. 429 (N.Y. Super. Ct. 1920).

Opinion

Smith, J.

Claimant is a highway contractor and the claim is for damages for alleged breaches by the state of a contract for highway construction entered into between the claimant and the state. The contract was for the construction of a section of a state highway one and seventeen one-hundredths miles in length entirely within the city of Hudson upon and over city streets. Under an arrangement with the city of Hudson, to which claimant was not a party and with which claimant had nothing to do, almost all of the moneys which were to be paid for the work to be done under the contract were to be furnished by the city of Hudson. The claimant’s total or gross sum bid for the performance of the work was $31,786.30, and the portion thereof to be furnished by the city was $30,400. The contract, however, as above stated, was between the claimant and the state, which latter undertook by the terms of the contract to pay the contractor the entire cost of the work, the matter of the city’s contribution to such cost being a matter of arrangement between the state highway commissioner and the officials of the city. It seems that it was a policy of the highway department [431]*431of the state not to obligate the state to pay the cost of this improvement until such time as the city of Hudson should file with the state highway department a certificate of deposit certifying that the amount of the city’s contribution toward the cost of the work had been made available.

However, without waiting for the filing of such certificate of deposit the highway commission advertised for bids for the performance of the work and on August 24, 1915, claimant submitted its bid, which proved to be the lowest bid at the public letting.

On August 25, 1915, the highway department by its secretary telegraphed claimant: “You were low bidder for Highway 5574. Make arrangements to execute contract at once,” and on the same day confirmed the telegram by a letter, also under the hand of the secretary, addressed to claimant saying: “ Confirming my telegram of today I beg to advise you that you were low bidder on the Hudson City-Columbia County Highway 5574 at the letting of August 24th. Will you kindly make arrangements to execute the contract agreement and report on this highway at once.”

On September 1, 1915, claimant’s president called at the highway department and signed and acknowledged the formal contract, which was dated August 31, 1915, and left with said department the contract together with surety company bonds, the form and sufficiency of which have not been questioned.

By virtue of the provisions of section 16 of the State Finance Law it was necessary before this contract could be executed by the state commissioner of highways, or become effective, that it be approved by the state comptroller. For the reason that the city of Hudson had not yet filed the certificate of deposit above referred to the state highway commissioner [432]*432delayed transmitting the contract to the comptroller for his approval until on or about September 14, 1915, on which date the contract was approved by the comptroller. At the time'of the transmittal of the contract to the comptroller for his approval the commissioner wrote upon the contract the letters O. K. and his own initials E. D., for the purpose of indicating to the comptroller the approval of the contract by the commissioner of highways and his intention, if approved by the comptroller, to execute it.

The state highway commissioner, however, did not sign the contract until October 20,1915, for the reason that it was not until that date that the city of Hudson filed with the highway department the certificate of deposit showing that the moneys to be contributed by it for this work had been made available.

On the same day, October 20, 1915, claimant was notified of the fact of such filing and of the signing of the contract by the commissioner of highways by a letter, which also stated, “ work upon the same can be started at once by you after notice to the Division Engineer ” and that “ a copy of the contract will be sent you for your files as soon as the same can be prepared.”

In the meantime and on or about September third or fourth, claimant’s president called at the highway department and had a conversation with Mr. Morris, the secretary of the highway commission, whose authority to speak for the commission so far as he has done so has not been questioned, in the course of which conversation claimant’s president, to use his words, “asked for my contract and told them I was ready to go to work * * * I asked Mr. Morris if I could not have the contract so as I could start at once; we didn’t have very much time to allow to do [433]*433that work that season,” to which Secretary Morris replied: “We will get it ready for you shortly; we will do the best we can for you but the city of Hudson is holding us up.” The claimant’s president asked, “ How are they holding you up,” to which Secretary Morris replied, “ Why the money has not been appropriated, the city of Hudson’s part. ’ ’ Claimant’s president then complained that he had two plants and a force of men which he was holding for this job, that He had figured the work very low in order to get enough work for the full summer, to which Secretary Morris again replied: “ We will do the best we can. I will let you know in a few days.” On two subsequent occasions within a few days thereafter similar conversations were had between claimant’s president and Secretary Morris.

After receiving the letter of October twentieth, notifying the claimant that the city of Hudson had deposited its moneys and that the contract had been signed by the commissioner of highways, claimant’s president called at the highway department and in a conversation with Secretary Morris, complained that it was “ too late to start in with the job at that time because the city of Hudson would not stand for a street tearing up some of the streets during the winter.” After some further conversation between the claimant’s president and Secretary Morris the former was referred to a Mr. Wait, division engineer of the highway department in whose division the site of the work was located, and at a conference between claimant’s president and the division engineer held within a few days after the above interview with Secretary Morris it was mutually agreed that the work should go over until the following spring. In conformity to this arrangement the work was not started until April, 1916, and was completed by claimant in December of [434]*434that year and was paid for by the state at contract prices.

It was established on the trial that had claimant commenced the performance of the work covered by the contract immediately after the contract had been approved by the comptroller on September 14, 1915, it would have been able to complete the work in a period of six weeks with the plant and force then at its command, and at a cost of $10,166.05 less than the cost of an uninterrupted and undelayed performance in 1916. This amount claimant seeks to recover from the state upon the theory that the construction contract became effective and in force upon its approval by the comptroller on September 14, 1915, without the signature thereto of the state commissioner of highways and that the delay of that officer in signing the same prevented the contractor from performing the-contract in the year 1915 when he could have done so advantageously and constituted a breach of the contract.

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Cite This Page — Counsel Stack

Bluebook (online)
110 Misc. 429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/belmar-contracting-co-v-state-nyclaimsct-1920.