Extruded Louver Corp. v. McNulty

34 Misc. 2d 566, 226 N.Y.S.2d 220, 1962 N.Y. Misc. LEXIS 3828
CourtNew York Supreme Court
DecidedFebruary 16, 1962
StatusPublished
Cited by8 cases

This text of 34 Misc. 2d 566 (Extruded Louver Corp. v. McNulty) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Extruded Louver Corp. v. McNulty, 34 Misc. 2d 566, 226 N.Y.S.2d 220, 1962 N.Y. Misc. LEXIS 3828 (N.Y. Super. Ct. 1962).

Opinion

Anthony M. Livoti, J.

This action was tried before this court without a jury. It consists of four causes of action: the first cause of action is for goods sold and delivered to defendant Gerald Russell McNulty, doing business as McNulty Brothers (hereinafter called McNulty ”); the second cause of action is for an account stated against defendant McNulty; the third cause of action is against defendants John T. Brady & Company, Inc. (hereinafter called “ Brady ”) and Fidelity & Deposit Company of Maryland (hereinafter called “ Fidelity ”) based upon a labor and material payment bond furnished and executed by defendant Brady, as principal, and defendant Fidelity, as surety, delivered to the County of Nassau pursuant to the [567]*567requirements of a certain contract entered into by and between the County of Nassau and defendant Brady, and the fourth cause of action is against defendants Brady and Fidelity based upon a construction performance bond executed by defendant Brady, as principal, and defendant Fidelity, as surety, and delivered to the County of Nassau pursuant to the requirements of a certain contract entered into by and between the County of Nassau and defendant Brady.

In the construction of a public improvement defendant Brady had an agreement, as general contractor, with the County of Nassau for the construction of the Nassau County Office Building, No. 3. Defendant Fidelity had executed and delivered to the County of Nassau a construction performance bond and a labor and material payment bond in the amount of $2,437,000 guaranteeing defendant Brady’s prompt payment of moneys due to persons supplying labor and/or materials in carrying out the contract. The plaintiff is such a materialman. McNulty, a defendant, held a subcontract for certain roofing work and materials required under the general contract. Plaintiff had supplied the subcontractor, defendant McNulty, with building materials consisting of extruded aluminum louvers complete with bird screens and all necessary clips, etc., at an agreed price of $4,954, which materials were necessary for the performance of the contract with Nassau County. When defendant McNulty defaulted on its subcontract, the work was completed by the general contractor at a cost exceeding any balance due to the subcontractor, defendant McNulty.

The credible testimony and documentary evidence establish that all of the materials here involved were ordered by and delivered to defendant McNulty and used upon said project with the knowledge of the defendants. It is thus readily apparent that there is no defense to the first and second causes of action.

On December 23, 1958, plaintiff sold and delivered to defendant McNulty at Nassau County Office Building, No. 3, Old Country Road and County Seat Drive at Mineóla, Long Island, New York, 12 sets of model FH 44 aluminum louvers complete with bird screens, etc., at a total agreed price of $4,890.

Thereafter, on June 25, 1959, and on several prior occasions, plaintiff communicated by mail with defendant Brady demanding payment for said building materials, for which defendant McNulty failed to pay, and, at the request of defendant Brady, additional materials were sold and delivered by plaintiff on July 2,1959, at an additional price of $64, with the assurance by defendant Brady that plaintiff would be paid the entire unpaid balance without further delay.

[568]*568On July 16, 1959, plaintiff again sent a letter to defendant Brady advising of the sum due it from defendant McNulty and demanding payment. On July 22, 1959, plaintiff received a reply, dated July 21,1959, from defendant Brady which stated:

“ This is to acknowledge receipt of your letter dated July 16, 1959 relative to the McNulty Brothers indebtedness of approximately $5,000.00 due you for materials furnished them in re: the above project.

‘1 Please be advised that we have a payment which has accrued to the credit of McNulty Brothers. If you will get their authorization for us to release payment to you we will be glad to release payment of $1,200.00 to you at this time and henceforth as payments accrue if authorized to do so by McNulty Brothers.”

On November 2, 1959, the plaintiff filed a mechanic’s lien for the materials furnished to the defendants pursuant to section 12 of the Lien Law of the State of New York. On November 18, 1959, plaintiff’s attorney wrote to the home office of defendant Fidelity notifying them that the plaintiff filed the said mechanic’s lien and demanding payment due plaintiff from defendants McNulty and Brady. On November 25,1959, defendant Fidelity acknowledged receipt of plaintiff’s attorney’s communication of November 18, 1959, regarding balance due plaintiff and informed him that the home office was forwarding a copy of plaintiff’s attorney’s letter to Mr. A. K. Bennett, manager and claim attorney for defendant Fidelity at its New York office which was assigned to handle such claim, and that plaintiff’s attorney may expect “to hear from Mr. Bennett during the course of the next few days. ’ ’

On December 2,1959, defendant McNulty, pursuant to defendant Brady’s letter to plaintiff dated July 21,1959, forwarded an authorization to defendant Brady to release $4,954 to plaintiff for materials furnished, delivered and installed on the Nassau County Courthouse from moneys accrued from defendant McNulty’s account. On December 9, 1959, defendant Brady’s attorney informed plaintiff that due to the plaintiff having filed a mechanic’s lien and defendant McNulty having left the job uncompleted, defendant Brady would not, under and circumstances, honor such assignment as was given to plaintiff by defendant McNulty.

When, however, more than three months elapsed without a further reply from defendant Fidelity, plaintiff’s attorney on March 10,1960, addressed another letter to defendant Fidelity’s home office informing them that he had not heard from Mr. A. K. Bennett. On March 15, 1960, plaintiff’s attorney received a response from W. D. Bollinger, manager and attorney for [569]*569defendant. Fidelity’s home office stated that he had talked hy telephone with Mr. Bennett and that Mr. Bennett would “ write you promptly, advising of our position.” On March 16, 1960, plaintiff’s attorney received a letter from defendant Fidelity’s A. K. Bennett which stated, in part: “ This Company as surety looks to its principal John T. Brady & Go., Inc. to indemnify it against any loss under the bonds referred to. We assume you have been informed as to the position of our principal regarding this claim. Under the circumstances, I do not believe there is any further action we can take in this matter at the present time.”

On March 25, 1960, plaintiff’s attorney forwarded proof of claim duly verified by plaintiff’s president on March 19, 1960, to defendant Fidelity’s home office. On April 2,1960, plaintiff’s attorney received an acknowledgement of his claim letter from defendant Fidelity’s W. D. Bollinger stating in part: “ In view of the dispute between principal in the bond and its subcontractor, our hands, as surety, are tied, and we cannot take position different from that of the Brady Company which has the primary liability. ’ ’

The only objection interposed by defendants Brady and Fidelity to the third cause of action is that plaintiff did not comply with the conditions prescribed in the said labor and material payment bond in that proper and timely notice was not given before the commencement of this action. [See 28 Mise 2d 85.] The court fails to find any basis for this claim.

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Extruded Louver Corp. v. McNulty
18 A.D.2d 661 (Appellate Division of the Supreme Court of New York, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
34 Misc. 2d 566, 226 N.Y.S.2d 220, 1962 N.Y. Misc. LEXIS 3828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/extruded-louver-corp-v-mcnulty-nysupct-1962.