Express Industries & Terminal Corp. v. New York State Department of Transportation

252 A.D.2d 376, 676 N.Y.S.2d 62, 1998 N.Y. App. Div. LEXIS 8130
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 9, 1998
StatusPublished
Cited by10 cases

This text of 252 A.D.2d 376 (Express Industries & Terminal Corp. v. New York State Department of Transportation) 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
Express Industries & Terminal Corp. v. New York State Department of Transportation, 252 A.D.2d 376, 676 N.Y.S.2d 62, 1998 N.Y. App. Div. LEXIS 8130 (N.Y. Ct. App. 1998).

Opinions

—Judgment, Supreme Court, New York County (Herman Cahn, J.), entered on or about June 3, 1997, which, inter alia, granted respondents’ motion and cross-motion to dismiss the CPLR article 78 petition, reversed, on the law, without costs, and the petition granted to the extent of declaring the permit issued to petitioner to be valid and enforceable.

Petitioner Express Industries and Terminal Corp. has been the lessee of space situated at Pier 40 since the mid-1970s. This matter arises out of negotiations for petitioner’s continued use of the pier following the expiration of its lease on December 31, 1996. On November 15, 1996, respondent New York State Department of Transportation (DOT) sent petitioner four copies of a permit for use of the premises until December 31, 2000. The permit provides for a total fee of $3.5 million and is cancel-able only for violation of its terms and conditions. An accompanying letter to petitioner notes that the DOT “and the Hudson River Conservancy have been in negotiations with you for some time and the terms and conditions as stated in the permit are the Department’s final determination.” It continues, “Once the permits are signed by the Department a fully executed copy will be sent to you.”

Henry Mandel, president of petitioner, signed the permits on November 18, 1996 and returned them to respondent on November 26. It is uncontested that no alterations or deletions were made to the permits, which were returned with a cover letter signed by Ricky Mandel, petitioner’s vice president. This letter is the basis of respondents’ contention that the permit is unenforceable. It relates, in material part, “In conversations with Mr. Vince McGowan of the Hudson River Conservancy, certain aspects of the permit were under discussion”, specifically, the exclusion of 70,000 square feet in the truck yard and the necessity for a security deposit. The letter concludes, “Hopefully, when Mr. McGowan returns, we can resolve these two (2) issues.”

Rather than approve petitioner’s permit, Richard J. Morris, [377]*377DOT’s director of real-estate operations, replied by letter dated December 4, that the DOT “has received another offer to enter into a permit for the Pier 40 complex that is substantially higher than the amount set forth in the proposed permit you submitted November 26, 1996.” The letter gave petitioner until 5:00 p.m. on December 5 to submit a “new offer”. When Henry Mandel, petitioner’s president, responded with a demand that DOT honor the permit, DOT executed a second permit for use of the premises in favor of respondent Pier 40 Operating, LLC, which was approved by Mr. Morris on December 5, 1996 at 5:08 p.m. The second permit contains the same essential terms but provides for a total fee of $4.5 million, instead of $3.5 million. Petitioner thereafter commenced this proceeding on December 12, 1996 by way of order to show cause and petition seeking to enforce the agreement formed with respondent. Respondent DOT then brought a motion to dismiss the petition predicated on a defense based upon documentary evidence, lack of jurisdiction and failure to state grounds upon which relief may be granted (CPLR 7804 [f]; 3211 [a] [1], [2], [7]), claims also advanced by respondent Pier 40 Operating, LLC by way of cross motion. Supreme Court granted the respective motions and dismissed the petition, ruling, “The November 26, 1996 letter was not an acceptance of DOT’s offer, but instead constituted a counteroffer.”

Resolution of this controversy turns on basic contract law, specifically, the concepts of offer and acceptance. At issue is whether the signing of the permit form and its return to respondent resulted in the formation of a valid agreement, thereby entitling petitioner to use the premises during the specified permit period.

A contract is simply a promise supported by consideration (Curtis Props. Corp. v Greif Cos., 212 AD2d 259, 264), which arises, in the normal course of events, when the terms of an offer are accepted by the party to whom it is extended (see, Calamari and Perillo, Contracts § 11, at 13). “The offeror is the master of his offer” (Calamari and Perillo, Contracts § 30, at 45) and may specify what constitutes acceptance.

Two cases illustrate the scope of this doctrine. In Fairmount Glass Works v Grunden-Martin Woodenware Co. (106 Ky 659, 51 SW 196, 197 [1899]), a quotation of prices by a vendor was designated “ ‘for immediate acceptance’ ”. While a price list, circular or advertisement usually does not operate as an offer (e.g., Schenectady Stove Co. v Holbrook, 101 NY 45 [catalogue]), the court held that the quoted language evinced the intent to make an offer, which became binding upon acceptance by the [378]*378vendee. By contrast, in the case of International Filter Co. v Conroe Gin, Ice & Light Co. (277 SW 631 [Tex Commn App 1925]), a letter offering a filtration system stated that a contract would arise upon approval of the order by a corporate officer. While communication of acceptance is normally required to bind the parties to a contract (e.g., White v Corlies, 46 NY 467), the court ruled that notice of acceptance was not necessary under the terms of the offer, which ripened into a contract upon signature by the plaintiff’s president.

It is settled that where a contract is straightforward and unambiguous, its interpretation presents a question of law for the court, to be made without resort to extrinsic evidence (West, Weir & Bartel v Mary Carter Paint Co., 25 NY2d 535, 540; Eden Music Corp. v Times Sq. Music Publs. Co., 127 AD2d 161, 164). Unless the intention of the parties to be bound cannot be ascertained from the four corners of the permit, examination of the correspondence exchanged between petitioner and the DOT is unwarranted.

There seems to be no dispute that the permit itself constitutes an offer (the contention being whether petitioner has accepted it or made a counteroffer), and the terms of the permit support this construction. Above the signature of petitioner’s president is the language: “acceptance: In consideration of the granting of this permit, the undersigned accepts all of the above terms, conditions and provisions.”

Two points deserve emphasis. First, petitioner’s execution of the permit is expressly designated as an acceptance, supporting the consensus that the permit constitutes an offer. Second, should there be any doubt of petitioner’s power to bind respondent to the terms of the offer, the provision recites that the grant of the permit is the consideration supporting petitioner’s assumption of its obligations. Thus, the clear import of the language employed is that the permit has been granted and that petitioner, upon signing, accepts its terms and conditions.

In opposing petitioner’s application for preliminary relief,, respondent maintained that its permit does not become effective until signed by an official of the DOT. On appeal, it asserts that it “was not required, as Express argues, to spell out in the permit that execution by both parties, much less acceptance of all the terms, was a prerequisite for enforceability.”

This argument is devoid of merit. As the master of its offer, respondent was free to condition the effectiveness of the permit upon signature by a DOT official (see, International Filter Co. v Conroe Gin, Ice & Light Co., supra). This it did not do. Instead, it sent petitioner a permit for its acceptance (see, Fairmount [379]*379Glass Works v Grunden-Martin Woodenware Co., supra), which thereby became binding upon signature.

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Cite This Page — Counsel Stack

Bluebook (online)
252 A.D.2d 376, 676 N.Y.S.2d 62, 1998 N.Y. App. Div. LEXIS 8130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/express-industries-terminal-corp-v-new-york-state-department-of-nyappdiv-1998.