General Supply & Construction Co. v. Goelet

207 A.D. 646, 202 N.Y.S. 721, 1924 N.Y. App. Div. LEXIS 9840

This text of 207 A.D. 646 (General Supply & Construction Co. v. Goelet) 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
General Supply & Construction Co. v. Goelet, 207 A.D. 646, 202 N.Y.S. 721, 1924 N.Y. App. Div. LEXIS 9840 (N.Y. Ct. App. 1924).

Opinion

Finch, J.:

A mechanic’s lien was filed by the plaintiff as contractor for S114,269 against premises owned by the defendant Goelet (hereinafter referred to as the “ owner ”). Mechanics’ liens also were filed by the other defendants as subcontractors. By stipulation it was- agreed that the subcontractors were entitled to judgments for certain stipulated amounts out of any recovery by the plaintiff.

It appears that the plaintiff and the owner entered into a contract whereby the plaintiff undertook to erect a building for the owner, [648]*648to be completed by July 1, 1907. Said building was not completed as provided by the contract, and the progress of the work was so unsatisfactory to the owner that on March 21, 1908, he took over the work and carried it to completion. The plaintiff sued to recover the value of the work and material furnished up to the time the owner took over the work. The owner counterclaimed the damages sustained by him by reason of the plaintiff’s delay in proceeding with the work.

Upon a former appeal this court reversed a judgment for the plaintiff and certain of the defendants (149 App. Div. 80) and ordered a new trial, holding that, while the termination of the contract, whether rightful or wrongful, by the owner created a liability to the plaintiff, because not in accordance with the terms of said contract, nevertheless, the plaintiff, by bringing his action on the theory of quantum meruit, thereby elected to treat the contract as canceled and to bring his action on that theory rather than for damages for a breach of the contract. (Jones v. Judd, 4 N. Y. 411, 414; Wright v. Reusens, 133 id. 298, 306; Borup v. Von Kokeritz, 162 App. Div. 394.) The referee in the present trial also has found that the action is in quantum meruit. The contract, therefore, no longer governed except as a means for determining how long the plaintiff was in default in completing the work. This court also held that there was no evidence to sustain a finding that the owner was responsible for any of the delay in the prosecution of the work by the plaintiff, and that the owner was entitled to" offset against the claim of the plaintiff the actual or general damages which he sustained between the time when the building should have been completed and when he took over the work'. Also that the plaintiff’s claim being unliquidated and not susceptible of ascertainment by computation, the plaintiff was not entitled to interest upon the amount recovered.

The record now presented is substantially the same as upon the former appeal, with some additional testimony, adduced by the plaintiff for the purpose of showing delay on the part of the owner. The learned referee has found that the owner and contractor were mutually responsible for the delay, and dismissed the counterclaim of the owner, upon the ground that when the owner allowed the plaintiff to continue with the work after the time for completion had passed, the owner thereby waived the right to make any claim for damages for delay. By permitting the work to proceed as aforesaid, the most that the owner might lose would be the right to cancel the contract because of delay without notice to the plaintiff and an opportunity to complete within a reasonable time thereafter. The owner, however, did not lose the right to recover [649]*649damages by reason of the delay which had already accrued. The rule applicable is stated clearly in the case of Shute v. Hamilton (3 Daly, 462, 470) where the court said: “ The referee has found, that by these payments the defendant merely treated the contract as still in force, and that they constituted no waiver of the defendant’s claim for damages, by reason of the delay. The finding was correct. The acts here relied upon as amounting to a waiver took place after the plaintiff’s failure to complete the building within the stipulated time, and in respect to the waiver of such a condition or of all claim for damages under it, there is a very material distinction between a party’s acts before and after the breach of a condition; for after a breach, as a general rule, there is no waiver of the claim for damages, unless by the making of anew agreement.” Nor can the owner’s counterclaim for delay be defeated even if the plaintiff should have shown (which, as noted, it failed to do) that the delay in part was caused by the fault of the owner, since the contract specifically provided that the contractor should be entitled to an extension of time for completing the building equivalent to any delay caused by the act of the owner, but that “ no such allowance shall be made unless a claim therefor is presented in writing to the architect and consulting architects within twenty-four hours of the occurrence of such delay.” No such claim was presented in the case at bar. There is no substantial distinction between a claim for extension of time in which to perform the work because of delays by the owner, and an excuse for failure to perform the work within the required time because of delays alleged to have been caused by the owner. In either case it is an allowance sought by the contractor. It is not a case where the contractor is seeking to recover damages upon the theory of a Breach of the contract by the owner because of unreasonable or willful delay, but clearly is a contingency which the parties undertook to provide against in their contract so as to avoid the uncertainty of disputes upon this question long after the occurrence of -the alleged delays. (Phelan v. Mayor, etc., 119 N. Y. 86, 90; Gearty v. Mayor, 62 App. Div. 72; Van Buskirk v. Board of Education, 78 N. J. L. 650.) In the case last-cited the reason for the rule is clearly shown, the court stating: “ Testimony was also tendered to show a delay in the work because of inability to get cheese cloth to close the windows while the plastering was being done; and delay in tearing out a stairway because of variations from the plans; and delay of the architect in furnishing details; and delay because of the architect’s unreasonable insistence that the plaster was too green to proceed with the work. In none of these instances, however, was there [650]*650any claim for an extension presented to the architect in writing, and of course there was no period of extended time fixed by the architect. * * * The provisions in question were introduced into the contract for the security of the Board of Education for the purpose of limiting its liability against uncertain claims resting upon parol testimony. No one could waive those provisions save the Board of Education, or someone authorized by that Board to do so."

' Because of the foregoing reason a decision as to the weight of the evidence on the finding of undue delay on the part of the owner is not necessary to the determination of this appeal. This record discloses, however, that such a finding is clearly against the weight of the evidence if indeed it may not be said to lack any evidence to support it. All the delay which the plaintiff complains of occurred in connection with the approval of plans which the plaintiff was obligated to furnish and have approved by the owner’s architects. The plans first furnished were approved, but within six weeks it was discovered that said plans did not comply with the requirements of the contract and new plans were requested. It was conceded that the plans were defective, and no objection was made to furnishing new plans.

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Related

Phelan v. Mayor of New York
23 N.E. 175 (New York Court of Appeals, 1890)
Jones v. . Judd
4 N.Y. 411 (New York Court of Appeals, 1850)
Gearty v. Mayor of New York
62 A.D. 72 (Appellate Division of the Supreme Court of New York, 1901)
General Supply & Construction Co. v. Goelet
149 A.D. 80 (Appellate Division of the Supreme Court of New York, 1912)
Borup v. Von Kokeritz
162 A.D. 394 (Appellate Division of the Supreme Court of New York, 1914)
Shute v. Hamilton
3 Daly 462 (New York Court of Common Pleas, 1871)

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Bluebook (online)
207 A.D. 646, 202 N.Y.S. 721, 1924 N.Y. App. Div. LEXIS 9840, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-supply-construction-co-v-goelet-nyappdiv-1924.