Benowski v. Track Dr., LLC

CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 16, 2026
DocketCV-25-0305
StatusPublished

This text of Benowski v. Track Dr., LLC (Benowski v. Track Dr., LLC) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benowski v. Track Dr., LLC, (N.Y. Ct. App. 2026).

Opinion

Benowski v Track Dr., LLC - 2026 NY Slip Op 04466
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Law Reporting
Bureau
Thomas J.K. Smith, State Reporter

Benowski v Track Dr., LLC

2026 NY Slip Op 04466

July 16, 2026

Appellate Division, Third Department

Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.

This decision is uncorrected and subject to revision before publication in the Official Reports.

John Benowski, Doing Business as Sprague Electric Co., Appellant,

v

Track Drive, LLC, et al., Respondents.

Decided and Entered:July 16, 2026

CV-25-0305

Calendar Date: June 1, 2026

Before: Clark, J.P., Fisher, Powers, Mackey And Corcoran, JJ.

The Law Office of Alfred Paniccia, Jr., Endwell (Alfred Paniccia Jr. of counsel), for appellant.

Hinman, Howard & Kattell, LLP, Binghamton (Jeffrey A. Jaketic of counsel), for respondents.

[*1]

Clark, J.P.

Appeal from an order of the Supreme Court (Joseph McBride, J.), entered January 17, 2025 in Broome County, which, among other things, partially granted defendants' motion for summary judgment dismissing the complaint.

Plaintiff is an electrical contractor engaged in the business of installing and maintaining electrical systems in residential and commercial properties. In 2019, plaintiff began installing electrical systems at a renovated commercial property located in Broome County that is jointly owned by defendants Track Drive, LLC and PSM Limited Partnership. Due to plaintiff's longstanding business relationship with Track Drive's owners, no formal written agreement was executed to memorialize the scope of the work or the terms of the project. However, plaintiff provided Track Drive's owners with a written project proposal at the outset of the project that detailed the nature of the work and the expected total price, which amounted to approximately $1.14 million. Although not specifically delineated in the project proposal, the amount listed therein also reflected a 10% retainer fee plaintiff expected to be paid at the end of the work.

Over the course of the project, plaintiff submitted invoices and payment applications to Track Drive's representatives, which underwent an approval process. After the project encountered several delays, one of Track Drive's owners purportedly asked plaintiff to forgo his retainer fee as a way of compensating defendant L3Harris Technologies, Inc., which was leasing space at the project site. On January 7, 2020, after plaintiff had been paid approximately $800,000 for his work, he signed a written release in which he agreed to waive all claims pertaining to the project upon the receipt of an additional $233,797.23, which was listed as the "entire unpaid balance" due and owing to plaintiff and which did not include the 10% retainer fee.

In May 2021, plaintiff commenced this action seeking to recoup $140,738.47 from defendants, which encompassed the 10% retainer fee plus an additional sum of money he claimed was owed for his work. In January 2022, Supreme Court (Tait, J.) denied defendants' pre-answer motion to dismiss the complaint. Following joinder of issue and discovery, defendants moved for, among other things, summary judgment dismissing the complaint based upon the January 2020 release. Plaintiff opposed the motion and cross-moved for partial summary judgment dismissing defendants' affirmative defense of waiver and release, arguing that he did not sign the release, it was not fairly and knowingly made, and it pertained only to the release of liens against defendants' property and not claims against defendants for money owed under the project. Supreme Court (McBride, J.) granted defendants' motion for summary judgment, denied plaintiff's cross-motion and dismissed the complaint, finding that the clear and unambiguous language of the release barred plaintiff's claims and that plaintiff failed to establish a genuine [*2]issue of material fact as to whether he signed the release and whether it was fairly and knowingly made. Plaintiff appeals.

We affirm. "Generally, a valid release constitutes a complete bar to an action on a claim which is the subject of the release. If the language of a release is clear and unambiguous, the signing of a release is a jural act binding on the parties" (Centro Empresarial Cempresa S.A. v AmÉrica MÓvil, S.A.B. de C.V., 17 NY3d 269, 276 [2011] [internal quotation marks and citations omitted]; see Salewski v Music, 150 AD3d 1353, 1353-1354 [3d Dept 2017]). "Nevertheless, a release must be fairly and knowingly made and thus, like any other contract, may be set aside on the basis of fraud or mutual mistake" (Ford v Phillips, 121 AD3d 1232, 1234-1235 [3d Dept 2014] [internal quotation marks and citations omitted]). The defendants bear the initial burden to demonstrate that there has been a signed release, after which the burden shifts to the plaintiff to demonstrate "that there has been fraud, duress or some other fact which will be sufficient to void the release" (Centro Empresarial Cempresa S.A. v Ame rica Mo vil, S.A.B. de C.V., 17 NY3d at 276 [internal quotation marks and citation omitted]; see Cames v Craig, 181 AD3d 851, 852 [2d Dept 2020]).

In support of their motion for summary judgment, defendants submitted, among other things, deposition testimony, paid invoices pertaining to the project, payment applications submitted by plaintiff during the course of the work, his response to defendants' interrogatories, and the January 2020 release. As reflected in plaintiff's payment application from December 9, 2019, plaintiff had been paid $794,349.00 for the work he performed as of that date. A sum of $233,797.23, plus a 10% retainage fee (amounting to $114,238.47), remained outstanding at that time. During a deposition, one of Track Drive's owners testified that, at a meeting held on January 7, 2020, plaintiff agreed to forgo the 10% retainer fee listed in the December 2019 payment application due to delays in completing the work and he signed the January 2020 release during the meeting for that purpose.FN1 An individual who handled billing for the subject project and signed the release as a witness also gave sworn deposition testimony to that effect, affirming that she observed plaintiff sign the document.

The January 2020 release states, in relevant part, that "the undersigned [c]ontractor hereby waives, discharges, and releases any and all liens, claims, and rights to liens against the above-mentioned project, and any and all other property owned by or the title to which is in the name of" Track Drive and "acknowledges that the sum of . . . $233,797.23 constitutes the entire unpaid balance due. . . in connection with such project" (emphasis omitted). The release further provides that "the payment of said sum to the [c]ontractor will constitute payment in full and will fully satisfy any and all liens, claims, and demands which the [c][*3]ontractor may have or assert against the [o]wner in connection with said . . .

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Bluebook (online)
Benowski v. Track Dr., LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benowski-v-track-dr-llc-nyappdiv-2026.