Carder Realty Corp. v. State

172 Misc. 498, 15 N.Y.S.2d 604, 1939 N.Y. Misc. LEXIS 2436
CourtNew York Court of Claims
DecidedNovember 13, 1939
DocketClaim No. 23994
StatusPublished
Cited by1 cases

This text of 172 Misc. 498 (Carder Realty 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
Carder Realty Corp. v. State, 172 Misc. 498, 15 N.Y.S.2d 604, 1939 N.Y. Misc. LEXIS 2436 (N.Y. Super. Ct. 1939).

Opinion

Murphy, J.

December 17, 1931, the claimant entered into a contract with the State of New York, Department of Mental Hygiene, for the construction work of seven buildings and service tunnels at the Hudson River State Hospital, Poughkeepsie, N. Y. The work of the contract was to be performed in the order directed, and under the supervision of the chief engineer, in accordance with the drawings and specifications prepared by the Commissioner of Architecture. The proposal, the general conditions and specifications were made a part of the contract and the contractor agreed to conduct the work provided for in compliance with all the laws of the State of New York. With definite exceptions, the contractor further agreed that no laborer, workman or mechanic in its employ or in the employ of a subcontractor or other person doing or contracting to do the whole or part of the work should be permitted or required to work more than eight hours in any one calendar day, and that the wages to be paid for a legal day’s work as defined in the Labor Law to all classes of laborers, workmen or mechanics upon such work should not be less than the prevailing rate for a day’s work in the same trade or occupation in the locality within the State where such work was being performed.

[500]*500The contract is such as is called a lump sum contract. The price fixed for the work was $1,047,700; payments were to be made monthly provided the work was progressed diligently and to the satisfaction of the Department of Public Works. The payments were to be made in accordance with the terms specified in article 36 of the general conditions. They were to be made on the application of the contractor and the payments requested were to be supported by such vouchers or receipts as might be required by the chief engineer to substantiate the payments requested. Article 36 of the general conditions, referred to, is extracted from the Labor Law; it provides for the hours and wages of laborers; it makes violations of the provisions of the law a misdemeanor; it states the penalties for such violations, among which is the forfeiture of the contract following a second violation. By statutory command these stipulations and provisions relative to hours of ,labor and prevailing rate of wages are incorporated in the contract.

So far as the record discloses, the work of the contract proceeded without unpleasant incident until March, 1933; successive monthly payments were made, fourteen in number, the last being paid March 4, 1933, and, this payment included, the payments aggregated $816,584.83.

March 29, 1933, the claimant contractor, in accordance with the contract provisions, made application for a further payment. The application for this payment was approved by the State Department of Public Works under date of April 17, 1933. But prior to this payment being approved, and on April 10, 1933, the State Comptroller wrote the claimant informing it of a letter of advice received by that officer from the Attorney-General, stating that in view of such advice there would be withheld from the payment an amount sufficient to cover certain labor claims referred to in the Attorney-General’s letter. In the same letter the State Comptroller requested the claimant to forward an affidavit executed under the provisions of Section 220-b of the Labor Law certifying the maximum amount that may become due these laborers,” meaning those laborers on whose account payment would be withheld.

Through its counsel, the claimant, on April 13, 1933, made reply to this letter. It took the position that the provisions of sections 220-a and 220-b of the Labor Law did not apply or affect the claimant’s contract; it protested the right of the State to withhold any of the moneys due the contractor for the reason set forth in the part of the letter of the Attorney-General quoted in the letter of the State Comptroller to the claimant, the letter of April 10, 1933, and it gave notice that failure to make the payment requested would be determined by it as a breach of contract on the part of the State.

[501]*501By a letter of April 20, 1933, the claimant by its counsel wrote to the State Comptroller and again protested the State’s right to withhold payment; it demanded immediate payment to its assignee, The Carleton Realty Co., Inc., and restated that if payment were not immediately made it would conclude that the State had breached the contract, and it added that it would not proceed further with the work.

On the same day Carleton Realty Co., Inc., as assignee, by its counsel, made demand in writing upon the State for the immediate payment to it of the sum of $28,400, claiming the said sum under its assignment. Subsequent to April 20, 1933, the State receded from its position, and on April 25, 1933, it paid Estimate No. 15, amounting to $32,700, by paying therefrom to the Carleton Realty Co., Inc., the sum of $28,400 and retaining under the provisions of a court order the sum of $4,300. With this estimate, which was No. 15, paid, the total payments received by the claimant or made upon its account amounted to $849,284.83.

During the above-narrated controversy the claimant continued in the performance of the work of its contract, and on April 25, 1933, made requisition upon the State for further payment, and on May 4, 1933, the Department of Public Works approved the requisition to the amount of $24,650. On the day following, May 5, 1933, the State Comptroller by letter informed the claimant of an opinion rendered by the Attorney-General relative to chapter 472 of the Laws of 1932, sections 220-a and 220-b of the Labor Law, quoting from the opinion the following: “ It is, therefore, my opinion that you should require all contractors or subcontractors engaged in public improvements under existing contracts to file the statement of unpaid wages as provided for in Section 220-a of the Labor Law both as to contracts entered into prior to and after July 1st, 1932.” r? !

The letter then continued with a request that claimant furnish certificate regarding unpaid wages and informed claimant that the Estimate No. 16 would not be advanced for payment until the necessary affidavit might be’ received.

On May 6, 1933, a similar letter was sent by the Department of Public Works to the claimant and it inclosed forms of affidavit adopted by the Department for use in such cases and requestedj their execution. It stated: “ Until such affidavits are received, your application for payment is being held up.”

To the letter of the State Comptroller reply was made by claimant’s counsel May 5, 1933. The letter reads in part as follows: “ Under date of April 13, 1933, when our previous estimate was [502]*502being withheld on the same grounds, you were advised, through our attorney, that the above-entitled contract was entered into between Carder Realty Corporation and the State of New York on December 17, 1931, more than six months prior to the date when the above amendments to the Labor Law became effective. Your attention is again called to the fact that the above amendments do not apply to or affect this contract.”

This is followed with a demand for the immediate payment of the estimate to The Carleton Co., Inc., claimant’s assignee, and the demand for payment is coupled with a notice that the failure to make immediate payment shall be deemed a breach of contract on the State’s part and that the claimant will not proceed further with the Work.

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Related

Keehn v. S. & D. Motor Lines, Inc.
180 Misc. 91 (New York Supreme Court, 1943)

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Bluebook (online)
172 Misc. 498, 15 N.Y.S.2d 604, 1939 N.Y. Misc. LEXIS 2436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carder-realty-corp-v-state-nyclaimsct-1939.