DiMaria Const., Inc. v. Interarch

799 A.2d 555, 351 N.J. Super. 558
CourtNew Jersey Superior Court Appellate Division
DecidedMay 7, 2001
StatusPublished
Cited by39 cases

This text of 799 A.2d 555 (DiMaria Const., Inc. v. Interarch) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DiMaria Const., Inc. v. Interarch, 799 A.2d 555, 351 N.J. Super. 558 (N.J. Ct. App. 2001).

Opinion

799 A.2d 555 (2001)
351 N.J. Super. 558

DiMARIA CONSTRUCTION, INC., Plaintiff-Respondent,
v.
INTERARCH, Shirley Hill, and Raymond Klumb, Defendants-Appellants.

Superior Court of New Jersey, Appellate Division.

Argued April 4, 2001.
Decided May 7, 2001.

*557 Joel Sterns, Trenton, argued the cause for appellants (Frey, Petrakis, Deeb & Blum, attorneys, L. Oliver Prey and Heather Gelfand Ptasznik, on the brief).

Ellis I. Medoway argued the cause for respondent (Archer & Greiner, attorneys, Mr. Medoway and Arthur H. Jones, Jr., Haddonfield, on the brief).

BEFORE: Judges KING, COBURN and LEFELT.

*556 The opinion of the court was delivered by LEFELT, J.A.D.

Commerce Bank claimed plaintiff DiMaria Construction, Inc. breached its contract as general contractor for a construction project in a large office complex. Commerce terminated DiMaria's contract, and DiMaria sought arbitration. The arbitrators found that DiMaria's contract had been wrongfully terminated and awarded damages. Thereafter, DiMaria brought the instant action, for tortious interference with the Commerce contract, against defendants Shirley Hill, her firm Interarch, the interior designers of the offices, and Raymond Klumb, the architect. The matter came to trial before Judge Chaiet and a jury. The jury awarded DiMaria $750,000 in compensatory damages and $75,075 in punitive damages.

The defendants appeal, raising several points for our consideration. Among the points raised, defendants contend that DiMaria's tortious interference with contract claim was improper because defendants, as *558 agents of Commerce, were parties to the contract, and future lost profits should not have been awarded by the jury because these damages had previously been awarded in the arbitration. Defendants also challenge the judgment based on the entire controversy doctrine, various evidential errors and the failure to vacate the punitive damage award. We reject each of defendants' appeal points and affirm.

I.

In December 1993, Commerce hired DiMaria to do the interior fit-out and the heating, ventilation, and air conditioning ("HVAC") system for the project, a 35,000 square-foot office building, which would house a training facility dubbed Commerce University. Commerce hired Interarch, owned by Hill, to do the balance of the interior, including flooring and wall coverings. Hill is the wife of Vernon Hill, the founder and chairperson of Commerce. Klumb was the architect of the interior fit-out of the project. Klumb had contracted to provide architectural design services to Interarch. Klumb's association with Interarch provided approximately 90% of his business.

Nancy Siefert was the manager of the project for Commerce. Siefert claimed that Hill was actually "in charge" of the project and that Siefert took her orders from Hill, even though Hill was not her supervisor. Hill was described as a "difficult person to work for."

The interior fit-out contract called for DiMaria to "achieve substantial completion" of phase one of the project by January 28, 1994. Phase one consisted of approximately 20,000 square feet of interior space.

During the course of the project, Hill requested fifty-six changes to the planned work for which DiMaria prepared change orders. The orders estimated the cost of the proposed change and how much additional time would be needed to complete the project. Approximately fifty of these orders were approved by Hill. According to Siefert, this was a large number of change orders for a job of this size.

At around the time of change order # 40, Hill told DiMaria that it would be granted no more additional time to complete the project because the project needed to be complete for the May stockholders meeting. According to Dennis DiFlorio, chief retail officer and executive vice president of Commerce, DiMaria had been granted two, one-month extensions, so that the required completion date for phase one was March 31, 1994.

In the middle of March, Commerce received a temporary certificate of occupancy for phase one of the project and began moving tenants into the building in early April. The parties disputed when DiMaria completed phase one. According to Siefert, the completion of phase one was delayed by the poor quality of the plans prepared by Interarch from which DiMaria was working. DiMaria and Siefert testified that DiMaria completed phase one by the end of March. Hill and DiFlorio disagreed and contended that phase one was not completed by the end of March or beginning of April.

In early April, Hill and DiFlorio began discussing terminating DiMaria from the project and soon decided that DiMaria would be fired. Siefert disagreed with DiFlorio's and Hill's decision to fire DiMaria and discussed her opposition with them. Siefert concluded that the change orders extended the contract completion date by approximately fifty working days and that therefore DiMaria was not late. She reported the results of her analysis to Hill, but Siefert had the impression that Hill had already made up her mind.

*559 On April 14, 1994, Klumb signed a certification which stated that DiMaria had breached the contract terms by failing to substantially complete phase one by the required contract date. Klumb also stated that DiMaria's failure to meet the completion date had delayed the project, and that Commerce had suffered as a result. According to DiMaria and Siefert, Klumb was rarely on the project site.

Commerce terminated DiMaria in an April 14, 1994 letter stating that DiMaria had not substantially completed phase one by the required date. The letter also advised DiMaria that the HVAC contract was also terminated and contended that DiMaria had failed "to provide enough properly skilled workers or proper materials to complete phase 1, and to properly supervise and manage the job...."

After Commerce terminated DiMaria, Hill hired DiMaria's subcontractors to continue their work. The project was ultimately completed on time for the May shareholders meeting.

As a result of being fired from the project, DiMaria was unable to obtain a performance bond for its next commercial contract. So, in order to obtain this job, DiMaria acquired two commercial loans for $221,000 and $260,000 secured by mortgages on DiMaria's house. DiMaria's bond company was unwilling to give DiMaria a performance bond until mid-1918. Accordingly, DiMaria could not bid on commercial contracts that required bonding during this period. DiMaria's gross revenues dropped from a high of over $2.7 million in 1996, to a low of $1.6 million in 1998.

The interior fit-out and HVAC contracts between Commerce and DiMaria required that any controversy or claim arising out of the contracts be settled through arbitration. Defendants concede that neither Interarch, Hill, nor Klumb could have been joined in the arbitration under this clause.

On October 21, 1994, DiMaria filed a demand for arbitration against Commerce with the American Arbitration Association ("AAA"). DiMaria claimed it was wrongfully terminated from both contracts and sought damages of $190,000 for the interior fit-out contract breach and $91,000 for the HVAC contract breach. DiMaria also demanded "lost profit[s] for the work the termination prevented the Claimant from performing."

On September 26, 1995, after twenty-two days of evidentiary hearings, the arbitrators found that Commerce had wrongly dismissed DiMaria but that the requirements for punitive damages had not been met.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Richard Schiess v. the Estate of Theresa Weber
New Jersey Superior Court App Division, 2026
Sisters of Charity of Saint Elizabeth v. Township of Morris
New Jersey Superior Court App Division, 2026
Pal Park Boys, LLC v. City of Hoboken
New Jersey Superior Court App Division, 2025
Nature's Touch Med Nj, LLC v. City of Hoboken
New Jersey Superior Court App Division, 2025
Innovation Optics, Inc. v. Corey M. Notis, M.D., P.A.
New Jersey Superior Court App Division, 2025
CHEN v. WANG
D. New Jersey, 2024
Sam Mikhail v. New Jersey Manufacturers Insurance Company
New Jersey Superior Court App Division, 2024
ALBEE v. ALBEE
E.D. Pennsylvania, 2024
THE PROVIDENT BANK v. FARDIN
D. New Jersey, 2023

Cite This Page — Counsel Stack

Bluebook (online)
799 A.2d 555, 351 N.J. Super. 558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dimaria-const-inc-v-interarch-njsuperctappdiv-2001.