Duffy Bros. v. Bing & Bing, Inc.

217 A.D. 10, 215 N.Y.S. 755, 1926 N.Y. App. Div. LEXIS 7729
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 14, 1926
StatusPublished
Cited by3 cases

This text of 217 A.D. 10 (Duffy Bros. v. Bing & Bing, Inc.) 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
Duffy Bros. v. Bing & Bing, Inc., 217 A.D. 10, 215 N.Y.S. 755, 1926 N.Y. App. Div. LEXIS 7729 (N.Y. Ct. App. 1926).

Opinion

Martin, J.

The defendant applied for judgment on the pleadings, consisting of the complaint and the amended answer. This motion was denied at Special Term.

The agreement out of which the action arises is set out in full as an exhibit attached to the complaint. It may be referred to as the contract for the plastering work in an addition to the Hotel St. George in Brooklyn. It provides that plaintiff shall be paid therefor the sum of $72,000; and it also provides:

“It is understood that the general progress of the building is behind that scheduled and contractor agrees to cooperate with builder in handling his work in such a manner as will hasten, not only the completion of the plastering work, but also that of other trades.
“ Should contractor complete the Work Within the times specified above, and should quality of contractor’s work be satisfactory to the builder; and should contractor cooperate with builder to the latter’s satisfaction, builder agrees to pay contractor, as a bonus, the sum of Five Thousand ($5,000) Dollars, in addition to the contract price stated above. Builder is to be the sole judge of the quality of work and the degree of cooperation displayed by the contractor, and builder’s decision as to this is to be final.”

The complaint alleges:

Fifth. That thereafter plaintiff proceeded with the performance of its said contract, furnished the extra Work and extra material agreed upon, performed the work in a manner and of a quality equal to [12]*12the best of that done anywhere in New York City in similar class buildings; giving the personal attention of its President to the supervision of the work and duly performed all the terms and conditions of said agreement on its part to be performed except in so far as plaintiff was prevented from so doing by the acts of defendant in failing to have and keep said premises in such a condition as to enable plaintiff to expeditiously carry on and perform the work therein.
“ Sixth. That defendant has refused to pay the Five Thousand ($5,000) Dollar bonus provided to be paid in said agreement, to plaintiff.
Seventh. That the defendant’s refusal to consider the quality of plaintiff’s work and the degree of cooperation as satisfactory to it is unwarranted; capricious and unreasonable and the bonus of Five Thousand ($5,000) Dollars is unwarrantedly, capriciously and unreasonably withheld thereon.”

The amended answer sets up as a first defense that the quality of work and the degree of co-operation afforded by plaintiff were not at all to the builder’s satisfaction, as plaintiff was notified and informed; that not only did it fail to co-operate to defendant’s satisfaction, but it caused inconvenience and invited numerous controversies instead of properly co-operating, so that it did not become entitled to the bonus.

This pleading also sets up as a second defense that the bonus was to be entirely gratuitous and without consideration; that its payment depended solely on defendant’s judgment, which was made final; that defendant had decided and notified plaintiff that the quality and degree of co-operation afforded were not satisfactory; and that accordingly plaintiff was not entitled to the payment of the bonus.

We believe that plaintiff must allege and prove facts entitling it to the bonus, that it has, in this respect, set forth mere conclusions and that the complaint is defective.^ Due performance as to the plastering work entitled it to be paid $72,000 for completing that work, but it must allege and prove something more before it can obtain a judgment for the additional $5,000. This is indicated by what is expressly made conditional to the further payment: That (1) the contractor should complete within the time specified; that (2) the quality of the work should be satisfactory to the builder; that (3) the contractor should co-operate with the builder to the latter’s satisfaction; and that (4) the builder is to be the sole judge of the quality of work and the degree of co-operation displayed by the contractor, the builder’s decision as to this to be final.

We do not agree with defendant that the so-called bonus was to [13]*13be a mere gratuity or that the agreement to pay it, on stated conditions, is not supported by consideration. All of the undertakings and promises of one contracting party were exchanged for those of the other.

In Kenicott v. Supervisors (83 U. S. [16 Wall.] 452, 471) the court said: “ But, secondly, the meaning of the word bonus is not that given to it by the objection. It.is thus defined by Webster: ‘A premium given for a loan or a charter or other privilege granted to a company; as, the bank paid a bonus for its charter; a sum paid in addition to a stated compensation.’ It is not a gift or gratuity, but a sum paid for services, or upon a consideration in addition to or in excess of that which would ordinarily be given.”

If it be more acceptable, the offer to pay the additional $5,000 may be regarded as contemplating service in addition to mere performance of the work of plastering the walls of the building. If such service should be rendered, defendant became obligated to pay the further sum stated.

Whichever view be taken, it is clear plaintiff would not make out a case for the recovery of the extra $5,000 by showing that the plastering work was duly completed. The pleading should set forth that the contractor completed the work within the time specified or, in lieu thereof, facts must be alleged showing that the delay was caused by the builder and was not due to the fault of plaintiff. It must also allege that the quality of the work performed under the contract was satisfactory to the builder, or, in lieu thereof, it must be shown that the work was as called for by the contract :and that the builder should have been satisfied, that its failure to be satisfied was unfounded, urged in bad faith, arbitrary and capricious. Similarly the pleading must cover the necessary element of satisfactory co-operation with the defendant and show •that there was no failure in this respect on the part of the contractor.

The contract having provided that the builder is to be the sole judge of the quality of the work and degree of co-operation displayed by the contractor, and that the builder’s decision on the right to the bonus is to be final, the plaintiff must allege a decision by the builder in his favor, or if there has been a decision by the builder against the plaintiff, then the plaintiff must allege facts showing that the decision is erroneous or was made in bad faith and under a misconstruction of the contract as pointed out in the numerous decisions where the certificate of the architect or engineer is final.

In Camden Iron Works v. City of New York (104 App. Div. 272) a somewhat similar question was presented. In that case a contractor with the city, who was to furnish pipe and castings for certain work, the quality to be determined by inspectors appointed [14]*14by the city, was held bound by the rejection of pipe by such inspectors, in the absence of any proof of bad faith on the part of the latter. To the same general effect are Becker v. Woarms (72 App. Div. 196); Jones v. City of New York (60 id. 161; affd., on opinion below, sub nom. O'Connor v. City of New York, 174 N. Y. 517), and Mahoney v.

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Bluebook (online)
217 A.D. 10, 215 N.Y.S. 755, 1926 N.Y. App. Div. LEXIS 7729, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duffy-bros-v-bing-bing-inc-nyappdiv-1926.