Ferrante Equipment Co. v. Lasker-Goldman Corp.

258 N.E.2d 202, 26 N.Y.2d 280, 309 N.Y.S.2d 913, 1970 N.Y. LEXIS 1382
CourtNew York Court of Appeals
DecidedApril 15, 1970
StatusPublished
Cited by64 cases

This text of 258 N.E.2d 202 (Ferrante Equipment Co. v. Lasker-Goldman Corp.) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferrante Equipment Co. v. Lasker-Goldman Corp., 258 N.E.2d 202, 26 N.Y.2d 280, 309 N.Y.S.2d 913, 1970 N.Y. LEXIS 1382 (N.Y. 1970).

Opinion

Scileppi, J.

Defendant Lasker-G-oldman Corporation (hereinafter referred to as Lasker) was the general contractor for the construction of buildings at New Paltz State College. Defendant Commercial Union Insurance Company, as surety, guaranteed the performance of Lasker’s contract and payment to suppliers of labor and material. Lasker subcontracted demolition, site and excavation work to third-party defendant Anchor Construction Co., Inc. (hereinafter referred to as Anchor) and required a performance bond.

Although no bond was obtained at the execution of the contract, Anchor was allowed to begin excavation. Plaintiff Ferrante Equipment Company, a closely held corporation in which Anthony J. Ferrante (hereinafter referred to as respondent) is a substantial shareholder, leased to Anchor more than $200,000 worth of equipment to be used in connection with the performance of Anchor’s subcontract. Respondent personally guaranteed certain Anchor notes to a bank in connection with that transaction, but there is no indication in the record as to where this was done.

Since Anchor had not furnished a performance bond, Lasker withheld payments to Anchor. Respondent then approached the Hanover Insurance Company (hereinafter referred to as appellant) and requested a performance bond on behalf of Anchor. All negotiations occurred in New Jersey and as an inducement to the issuance of the bond, respondent and Angelo Sorrentino, president of Anchor, personally agreed to indemnify appellant for all losses which it might incur in connection with its issuance of the bond. The bond was executed in New Jersey and apparently delivered to Lasker in New York. Anchor obtained a modification of its contract, whereby payments were to be jointly paid to Anchor and respondent. At all times, respondent was a New Jersey domiciliary

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Bluebook (online)
258 N.E.2d 202, 26 N.Y.2d 280, 309 N.Y.S.2d 913, 1970 N.Y. LEXIS 1382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferrante-equipment-co-v-lasker-goldman-corp-ny-1970.