F. Garofalo Electric Co. v. New York University

270 A.D.2d 76, 705 N.Y.S.2d 327
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 14, 2000
StatusPublished
Cited by11 cases

This text of 270 A.D.2d 76 (F. Garofalo Electric Co. v. New York University) 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
F. Garofalo Electric Co. v. New York University, 270 A.D.2d 76, 705 N.Y.S.2d 327 (N.Y. Ct. App. 2000).

Opinion

—Order, Supreme Court, New York County (Barry Cozier, J.), entered June 23, 1998, insofar as it denied the motion of defendant and third-party plaintiff New York University (NYU) for partial summary judgment dismissing the third and fifth causes of action in the complaint, denied the motion for summary judgment of defendants Morse Diesel International (MD International), Morse/Diesel, Inc. (Morse/ Diesel) and Amec Projects, Inc. (Amec) (collectively referred to as MDI) to dismiss portions of the fourth cause of action and the fifth cause of action, denied that branch of third-party defendant Interstate Industrial Corporation’s (Interstate) cross-motion for summary judgment dismissing NYU’s third-party claim for common law indemnification, and order, same court and Justice, entered April 20, 1999, insofar as upon renewal, it adhered to the prior order denying NYU’s motion for summary judgment, unanimously reversed, on the law, without costs, the motions for partial summary judgment and the cross-motion for summary judgment granted, the third and fifth causes of action dismissed against NYU, the fourth and fifth causes of action dismissed against MDI and the third-party complaint dismissed in its entirety. The Clerk is directed to enter judgment in favor of third-party defendants dismissing the third-party complaint in its entirety.

This action arises out of a dispute concerning the construction of NYU Medical School’s Skirball Institute of Biomolecular Medicine and Residential Tower, a mixed-use 23 story building located in Manhattan at 540-560 First Avenue. Construction of the building began in 1990, and a temporary certificate of occupancy was issued in 1993.

Plaintiff F. Garofalo Electric Co., Inc. was the electrical contractor for the construction project. Pursuant to an agreement, dated November 20, 1990, with NYU, plaintiff agreed to install the electrical systems. Plaintiff alleged that from the outset the project was plagued by delays and that the delays were the result of significant changes in the construction [77]*77methodology. In that regard, plaintiff complained that MDI, as the construction manager for the project, failed to coordinate plaintiffs work and the work performed by Interstate and other contractors. As a consequence, Interstate’s construction work allegedly damaged work that plaintiff had already performed, and imposed other unanticipated delays on plaintiff. In order to remedy such damages and ensuing delays, plaintiff alleged that NYU and MDI required and directed it to perform certain extra work, labor, and services, and to furnish certain extra materials and equipment, both of which plaintiff claimed were not required under the terms of the contract. Plaintiff alleged that NYU and MDI agreed to pay for such extra work and material, and that in reliance on their oral representation, it performed the additionál work and furnished the additional materials.

On November 17, 1993, plaintiff allegedly abandoned the project, and, as a consequence, NYU terminated the contract. Extensive completion and corrective work on the electrical systems by different contractors continued into 1995. This action ensued.

Plaintiffs complaint sets forth seven causes of action against NYU and MDI for breach of contract, and recovery of damages for delays and extra work performed. NYU moved for partial summary judgment to dismiss plaintiffs third cause of action for extra work performed, and the fifth cause of action seeking delay damages. The basis of the motion was that plaintiff had failed to provide the contractually required contemporaneous written notice and documentation of these claims, and that they were therefore barred. NYU also argued that the Statute of Frauds (General Obligations Law § 15-301 [1]) barred the claims inasmuch as plaintiff failed to demonstrate partial performance of an alleged oral modification which was unequivocally referable to same.

MDI moved to dismiss the second, fourth, and fifth causes of action. The second cause of action, which was also asserted against NYU, sought recovery for extra work. The fourth cause of action sought recovery of damages claimed in the first, second and third causes of action on the theory that such damages resulted from MDI’s conduct that allegedly exceeded the scope of its authority. The fifth cause of action (also asserted against NYU) sought to recover delay damages arising out of MDI’s purported misrepresentations. MDI argued that plaintiff had no basis upon which it could assert its claims against MDI for damages because MDI’s role as the construction manager for the project was to act as agent for NYU. In that capacity, [78]*78MDI negotiated contracts with, and supervised the work of, trade contractors and vendors who performed construction work on the project. MDI contended that nothing in its construction management contract with NYU made it responsible for the costs of construction. Further, like NYU, MDI argued that plaintiff waived its claim for extra work by failing to comply with the notice requirements set forth in the contract.

MDI also moved to dismiss the sixth and seventh causes of action which sought to recover damages due to MDI’s alleged negligence. MDI contended that it could not be held liable in negligence because New York law did not recognize a cause of action for economic loss caused by allegedly negligent performance of contractual duties. In any event, MDI had no duties with regard to plaintiffs contract other than those arising out of its contract with NYU, of which plaintiff was not a third-party beneficiary.

In opposition to the motions, plaintiff did not claim that it complied with the notice requirements or that the contract was modified by a signed writing, but, instead, argued that NYU, through MDI, its agent, either abandoned, waived or modified those requirements. In support of its argument, plaintiff relied principally on the deposition testimony of its employees to demonstrate that MDI’s project manager orally instructed plaintiff to perform the extra work and keep track of hours and materials, and said “it would be taken care of at the end of the job”. Plaintiff asserted that although the contract required that documentation be sent to both NYU and the architect (as well as to MDI), MDI directed plaintiff to deal exclusively with MDI and not to correspond with NYU or the architect. Further, plaintiff pointed to the deposition testimony of MDFs vice president, wherein he stated that MDI basically instructed plaintiff to “proceed with the work” without the paperwork required by the contract. Lastly, plaintiff maintained that its foreman and sub-foreman prepared Foreman’s Daily Labor Reports and submitted them to MDI on a daily or weekly basis and that these reports were sufficient to meet the contract requirements. In addition, plaintiff argued that NYU’s and MDFs motion should be denied because it was entitled to recover for theft, vandalism and damages.

Third-party defendant Interstate Industrial Corporation cross moved for summary judgment to dismiss the third-party action. It contended that the contractual indemnification clause was unenforceable since it never came into being; that common law indemnification was not applicable in actions where mere [79]*79economic losses were claimed; and, that contribution was not an available remedy because NYU was being sued on a contract and not in tort.

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Cite This Page — Counsel Stack

Bluebook (online)
270 A.D.2d 76, 705 N.Y.S.2d 327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/f-garofalo-electric-co-v-new-york-university-nyappdiv-2000.