C. & C. Blaschka, Inc. v. Frazer

32 A.D.2d 774, 302 N.Y.S.2d 443, 1969 N.Y. App. Div. LEXIS 3856
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 2, 1969
StatusPublished
Cited by2 cases

This text of 32 A.D.2d 774 (C. & C. Blaschka, Inc. v. Frazer) 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
C. & C. Blaschka, Inc. v. Frazer, 32 A.D.2d 774, 302 N.Y.S.2d 443, 1969 N.Y. App. Div. LEXIS 3856 (N.Y. Ct. App. 1969).

Opinion

In an action to recover damages for breach of a contract for the sale of land, plaintiff appeals from so much of a judgment of the Supreme Court, Nassau County, dated May 11, 1967, as dismissed the complaint as to respondents, on the merits, after a non-jury trial. Judgment reversed insofar as appealed from, on the law and the facts, with costs; and action as between appellant and respondents severed and remitted to the trial court for further proceedings not inconsistent with the views expressed herein. Findings of fact which are inconsistent herewith are reversed and new findings are made as indicated herein. Paragraph “3” of the rider to the contract between appellant (the buyer) and respondents (the sellers) required respondents to install a water supply line by May 15, 1960. Paragraph “1” thereof required respondents, in our opinion, to construct, by April 1, 1960, an access road not merely substantially similar to the 700-foot road from Stewart Avenue to the north side of the Long Island Railroad right of way, but one which would be acceptable for dedication; and we so find. That such was the intention of the parties is amply demonstrated by the facts that said paragraph contained a provision that the road, “upon completion, will be offered for dedication to the Town of Hempstead ”; -that provision for such a road was prerequisite to obtaining a building permit (see Town Law, § 280-a); and that respondents ultimately constructed such a road at their own expense. Moreover, the construction of such a road would be beneficial to the development of respondents’ other nearby land holdings. “ There is no surer way to find out what parties meant, than to see what they have done. Self-interest stimulates the mind to activity, and sharpens its perspicacity ” (Insurance Co. v. Dutcher, 95 U. S. 269, 273; see, also, Old Colony Trust Co. v. Omaha, 230 U. S. 100, 118; Natco Corp. v. United States, 240 F. 2d 398, 402-403; cf. Brown v. McGraw-Hill Book Co., 25 A D 2d 317, affd. 20 N Y 2d 826). Contrary to the contract provisions, the water line was not completed until April, 1961, and a road acceptable for dedication was not substantially completed until February 23, 1961. Accordingly, we find that respondents breached their contract with appellant in these two respects. The contract provisons were absolute in terms and, as stated in Wheeler v. Connecticut Mut. Life Ins. Co. (82 N. Y. 543, 550), “ when a person by express contract engages absolutely to do an act not impossible or unlawful at the time, neither inevitable accident, nor other unforeseen contingency not within his control, will excuse him, for the reason that he might have provided against them by his contract.” Relying upon the foregoing breaches of the contract, appellant seeks to recover of respondents consequential damages consisting of lost rent, rent concessions and legal and temporary water supply expenses. Since these damages were occasioned by special circumstances (namely, appellant leased the subject property to a tenant a short time after execution of the contract of sale and thereby obligated itself to erect thereon a building meeting certain specifications, to have the access road “ completed in accordance with municipal requirements for dedication ” and to make the premises available for occupancy by the tenant "not later than June 1, 1960”), respondents are liable therefor only if it be shown that said circumstances were within the contemplation of the parties at the time of or prior to the making of the contract (see Czarnikow-Rionda Co. v. Federal Sugar Refining Co., 255 N. Y. 33; Chapman v. Fargo, 223 N. Y. 32; 13 N. Y. Jur., Damages, §§ 46-48). Although the .testimony on this issue was in sharp conflict, we find incredible respondents’ claim of ignorance to the point that they were not even aware of the purpose for which plaintiff was purchasing the land. The brokers to whom respondents paid a commission knew of the contemplated lease. Moreover, the contract of sale itself, in addition to the [775]*775requirements that respondents construct the access road and install a water supply line, contained a representation hy respondents that “ the zone affecting the premises herein described will permit the erection of a factory or warehouse type building, to be used for light industry” and specifically authorized “the Purchaser herein * * ”, prior to closing, [to] enter upon the property for the purpose of erecting an improvement thereon”. Additionally, within two months after the contract of sale was executed, respondent Frazer testified before the Zoning Board of Appeals as follows: “ I feel morally bound to the applicant here for having sold him a very substantial and very expensive piece of real estate which would be of no value whatsoever if he couldn’t build on it.” Under the circumstances, we credit appellant’s evidence to the effect that the subjects of the lease and the importance of compliance with the dates set forth in the contract were discussed with respondents prior to the actual execution of the contract. We conclude, therefore, that appellant is entitled to recover such damages as are the natural and direct consequences of the breach of contract. It may not be allowed damages which are remote and not directly traceable to the breach or which result from intervening causes. For the purpose of fixing the amount of such damages, we remit the action to the trial court. In connection therewith, the court may reopen the trial for further proof on the issue of damages only. In connection with appellant’s claim for lost rent, we note that it seeks to recover the period between June 1, 1960 and about December 15, 1960 (as well as for the period thereafter, as hereinafter indicated), despite the fact that the building was not substantially complete until the latter date. It is undisputed that the building was constructed within a period of four months. Thus, had appellant been successful in obtaining a building permit at the time it originally applied therefor (namely, on February 1, I960), the building would, in all probability, have been substantially completed on or about June 1,1960, in accordance with the terms of the lease. Appellant’s inability to obtain the building permit until August 16, 1960 was the direct consequence of respondents’ delay in complying with section 280-a of the Town Law and section 334-a of the Real Property Law. That delay was caused by respondents’ desire to avoid filing a development map, which was prerequisite to the town’s acceptance of the road for dedication and to the issuance of a building permit. Compliance with these statutes should and must be presumed to have been within .the contemplation of the parties at the date of contract. Nevertheless, we find the record, in its present state, insufficient to determine whether the lease modifications and concessions in rent and other respects were due to causes which naturally flowed from the breach. On the record before us, it would appear that appellant is entitled to recover the rent lost for the period from June 1, 1960, the date when the building would have been completed but for the breach, to February 23, 1961, the date upon which the certificate of occupancy was issued. However, it is uncertain whether the loss of rent (including the rent concessions for the period during which the building was occupied) from February 23, 1961 to April, 1961, when the water line was completed, and thereafter was a direct and natural consequence of respondents’ breach. The same is true of the attorney’s fees claimed. The sums expended by appellant for temporary water supply were in mitigation of damages and are clearly recoverable.

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Bluebook (online)
32 A.D.2d 774, 302 N.Y.S.2d 443, 1969 N.Y. App. Div. LEXIS 3856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-c-blaschka-inc-v-frazer-nyappdiv-1969.