Frank's Auto Body, Inc. v. New York State Thruway Authority

164 Misc. 2d 1, 623 N.Y.S.2d 478, 1995 N.Y. Misc. LEXIS 51
CourtNew York Court of Claims
DecidedJanuary 20, 1995
DocketClaim No. 82783
StatusPublished

This text of 164 Misc. 2d 1 (Frank's Auto Body, Inc. v. New York State Thruway Authority) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frank's Auto Body, Inc. v. New York State Thruway Authority, 164 Misc. 2d 1, 623 N.Y.S.2d 478, 1995 N.Y. Misc. LEXIS 51 (N.Y. Super. Ct. 1995).

Opinion

OPINION OF THE COURT

Leonard Silverman, J.

The amended claim in this action was filed with permission of the court. The amended claim contains 50 causes of action. Each cause of action seeks payment for the towing and storage of an abandoned vehicle from the New York State Thruway at the direction of the defendant.

On January 1, 1990 claimant was a garage authorized by defendant to provide towing and emergency repair services from an assigned section of the Thruway. An original authorization pertained to trucks. Subsequently it became authorized to service cars. The letters of authorization established procedures and requirements for claimant when called by defendant to service disabled vehicles on the Thruway. An addendum to the letters provides additional duties and includes a schedule of rates for towing and rental rates for equipment.

It is clear from these documents that claimant was obligated to provide services as directed by Thruway personnel or agents. One paragraph specifically requires claimant to cooperate with the Authority and police personnel at all times in clearing the roadside. Defendant had the power to revoke its authorization at any time without cause.

It is undisputed that claimant was summoned by defendant on 50 separate occasions between January 10, 1990 and December 19, 1990 to tow vehicles from the Thruway. The vehicles were abandoned and thereafter not claimed by the registered owners. On those occasions when claimant provided repair, towing and/or storage for vehicles that were claimed by the owner, the owner paid for the services rendered. If the vehicle was unclaimed and the value was in excess of $750, the evidence indicated that defendant would take the car after paying the towing and storage fees. In the 50 instances which are the subject of this action claimant was never paid for [4]*4towing or storage of the vehicles since the vehicles were never claimed by the last registered owner or taken by defendant.

In each instance the defendant knew that claimant was in possession of the unclaimed vehicles. In some instances defendant was obligated by statute (Vehicle and Traffic Law § 1224 [3]) and regulation (15 NYCRR part 18) to notify the last registered owner that it recovered the vehicle and was going to dispose of the vehicle. While defendant fulfilled this obligation claimant stored the vehicle on its premises. In other instances claimant retained possession while defendant processed the necessary paperwork to transfer title of the vehicle to claimant. In each instance the vehicle was never claimed. Because each vehicle was valued at less than $750, title and a salvage certificate were given to claimant.

Claimant was obligated to store the vehicles which are the subject of this claim for as few as 12 days or as many as 171 days before he received title to the cars. The average storage period was approximately 77 days. The authorized storage charge was $15 per day. The damages sought in each cause of action, with one or two exceptions, clearly exceed the value of the vehicle.

Defendant argues that this claim must be dismissed since claimant failed to establish an implied or quasi contract. Defendant argues that claimant performed the services in question for almost a year and never sought payment. Defendant also relies upon the fact that none of the other authorized tow operators are compensated for their services under these circumstances and claimant knew it would not be paid for this work.

Prior to claimant’s demand for payment the parties never had any written or oral communications regarding the towing and/or storage charges attributable to those vehicles claimant towed from defendant’s property at defendant’s direction. There was no express contract. However, an implied contract may arise as an inference from facts and circumstances even though it is not formally stated in words (Jemzura v Jemzura, 36 NY2d 496). An implied contract rests upon the conduct of the parties. In evaluating the conduct we must determine whether a reasonable person would think a contract was intended.

Generally when a party requests the performance of services from another and the other performs those services the law implies a promise by the party to pay for those services (Homemakers, Inc. v Williams, 100 AD2d 505). The Thruway Authority would have us believe they are an excep[5]*5tion to this proposition. Defendant suggests that the authorized tow operators are so grateful for being allowed on the Thruway to service those vehicles whose owners pay for services rendered that they will work for the Thruway Authority for nothing. Nobody can expect to gratuitously receive services from a business on an ongoing basis. There is no evidence that claimant performed these services voluntarily.

Claimant provided services in good faith. The defendant accepted the benefits of claimant’s services and the services had a value. The only question is whether claimant had an expectation of compensation (Umscheid v Simnacher, 106 AD2d 380). We do not believe claimant would render towing and storage services without an expectation of compensation. That is not the way a business operates. When a vehicle was claimed by its owner or the defendant took the vehicle, claimant was paid. Claimant would not know at the time it answered a call for towing whether the owner or defendant would take a vehicle or whether defendant would give claimant title to the vehicle. In all of these options, however, claimant expected compensation in one form or another.

The documentary evidence and the relative statutes also indicate that claimant had a right to expect compensation for the services rendered and defendant was expected to pay for those services if the last registered owner failed to do so. Defendant’s own documents support this conclusion and contradict the testimony of defendant’s employees regarding the intent of the parties.

The letter authorizing claimant to provide services sets the rates for towing and storage. There is no distinction drawn between services provided to an individual motorist or the defendant or between services provided to a valuable car or a worthless vehicle. Only one paragraph in the entire letter addresses the situation where the owner of a vehicle is absent. That provision permits claimant to retain the vehicle until accrued charges are paid. Clearly defendant, by its own letter, intended for claimant to be paid for towing and storage.

The same intent, i.e., that the garage operator be compensated for towing and/or storage, is evinced by defendant’s own procedures for handling impounded vehicles. In those instances where a vehicle has number plates affixed or has a wholesale value in excess of $250,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jemzura v. Jemzura
330 N.E.2d 414 (New York Court of Appeals, 1975)
Homemakers, Inc. v. Williams
100 A.D.2d 505 (Appellate Division of the Supreme Court of New York, 1984)
Umscheid v. Simnacher
106 A.D.2d 380 (Appellate Division of the Supreme Court of New York, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
164 Misc. 2d 1, 623 N.Y.S.2d 478, 1995 N.Y. Misc. LEXIS 51, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franks-auto-body-inc-v-new-york-state-thruway-authority-nyclaimsct-1995.