Dember Construction Corp. v. P & R Electric Corp.

76 A.D.2d 540, 431 N.Y.S.2d 586, 1980 N.Y. App. Div. LEXIS 12168
CourtAppellate Division of the Supreme Court of the State of New York
DecidedSeptember 2, 1980
StatusPublished
Cited by16 cases

This text of 76 A.D.2d 540 (Dember Construction Corp. v. P & R Electric Corp.) 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
Dember Construction Corp. v. P & R Electric Corp., 76 A.D.2d 540, 431 N.Y.S.2d 586, 1980 N.Y. App. Div. LEXIS 12168 (N.Y. Ct. App. 1980).

Opinion

OPINION OF THE COURT

Titone, J.

The question presented upon appeal is whether a notice of mechanic’s lien, otherwise properly filed, is subject to summary discharge pursuant to subdivision (6) of section 19 of the Lien Law for failure of the lienor to allege, upon the face of the notice of lien, compliance with the provisions of section 15 of the Lien Law. Following are the facts upon which this question arose.

On or about September 3, 1976, Dember Construction Corporation contracted with IBM Corporation to erect for IBM a commercial building in Kings County. The general contract between IBM and Dember obligated the latter to employ and subcontract with minority businesses, in compliance with the President’s Executive Order No. 11246 (US Code, Cong & Admin News, 1965, p 4416), as amended, on the subject of equal employment opportunity. Accordingly, Dember awarded a subcontract for all of the electric work in the project to Berkel Electric Co., Inc., a minority contractor.

In turn, Berkel assigned to P & R Electric Corporation the "benefits and obligations” of its subcontract with Dember, "because P & R would be doing the work.” Paragraph 6 (t) of the subcontract prohibits assignment without the prior written consent of the general contractor, and the record fails to disclose the existence of any written consent to the assignment by Dember. The parties to this appeal dispute whether Dember had ever approved, and actively participated in, the assignment of the subcontract from Berkel to P & R Electric.

P & R contends that it had been the preferred and the intended subcontractor, but that Dember, being required to choose a minority concern, subcontracted to Berkel. Moreover, while Dember alleged that it had dealt only with Berkel, and stated that all requisitions for payment were made by Berkel and that all payments were made to Berkel, P & R asserted that it, and not Berkel, had provided all of the materials and labor in connection with the electrical subcontract.

On November 22, 1978 P & R filed a notice of mechanic’s [542]*542lien in the sum of $243,000 against the IBM property to secure its alleged interest in unpaid sums relating to labor and materials actually furnished to the project and to materials which were manufactured for, but not delivered to the project. By order to show cause dated February 7, 1979, Dember moved for a summary discharge of the mechanic’s lien.

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Bluebook (online)
76 A.D.2d 540, 431 N.Y.S.2d 586, 1980 N.Y. App. Div. LEXIS 12168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dember-construction-corp-v-p-r-electric-corp-nyappdiv-1980.