Gorsky v. Triou's Custom Homes, Inc.

194 Misc. 2d 736, 755 N.Y.S.2d 197, 2002 N.Y. Misc. LEXIS 1565
CourtNew York Supreme Court
DecidedDecember 1, 2002
StatusPublished
Cited by4 cases

This text of 194 Misc. 2d 736 (Gorsky v. Triou's Custom Homes, Inc.) 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
Gorsky v. Triou's Custom Homes, Inc., 194 Misc. 2d 736, 755 N.Y.S.2d 197, 2002 N.Y. Misc. LEXIS 1565 (N.Y. Super. Ct. 2002).

Opinion

OPINION OF THE COURT

John B. Nesbitt, J.

I. Introduction

Both plaintiffs and defendant move for pretrial relief requiring determination whether the statutory warranties attaching [737]*737to sales of new homes apply where no transfer of real estate accompanies home purchase; that is, where the home is constructed on land already owned by the buyer. This court finds that the transfer of the underlying real estate as an incident of home purchase is not dispositive whether the statutory warranties apply. Notwithstanding this determination, the court finds issues of fact precluding granting either of the pending motions.

II. Facts: Disputed and Undisputed

Plaintiffs, Thomas and Stephanie Gorsky (plaintiffs or Gor-skys), bring suit against the defendant, Triou’s Custom Homes, Inc. (defendant or Triou), for money damages alleging breach of a construction contract. Certain basic facts are undisputed. In 1997, plaintiffs owned unimproved real property adjacent to County Line Road in the Town of Walworth, Wayne County. In April of that year, the plaintiffs and defendant Triou entered into a written contract for defendant to construct a single-family home on plaintiffs’ property for the sum of $85,200. That contract obligated the defendant to provide labor and materials necessary for such construction in accordance with certain plans and specifications. Those plans stipulated the type of roof and its materials, including specific shingles of a particular manufacturer — Owens Corning Roofing, fiberglass, grade 235. The contract further stated that any changes in the plans required a written change order signed by both the plaintiffs and the defendant. The contract also provided that the defendant would “deliver those warranties given under Article 36-B of the General Business Law except as may be contained herein.” The defendant constructed the home in 1997 on plaintiffs’ property and was paid in accordance with the contract. The defendant did not install the Owens Corning shingles as stipulated in the written contract. Rather, defendant installed shingles manufactured by the Tampko Company.

The facts in dispute are equally straightforward. Plaintiffs allege that after the completion of the home problems began developing with the roofing shingles, resulting in some shingles being blown off the roof. They further allege that they contacted the defendant, who refused to address the situation. Upon investigation, the plaintiffs discovered that the shingles installed were not of Owens Corning manufacture, but that of the Tampko Company. They contacted the Tampko Company, which acknowledged that the shingles were defective and refunded plaintiffs the purchase price paid by the defendant. [738]*738Refund of the shingles’ purchase price would not cover installation of a new roof. Plaintiffs seek compensation from the defendant representing the cost of a new roof less the sum reimbursed by the Tampko Company.

Defendant Triou alleges that while Owens Corning shingles were stipulated in the contract “as originally contemplated,” that requirement was “modified” by agreement of the parties “with respect to the type of roofing shingles to be installed by the [djefendant.” Triou alleges that the Tampko shingles used “were of comparable quality to the Owens Corning shingles called for in the agreement.” He also alleges that he received no written notice of any alleged shingle defect until he received a letter from plaintiffs’ attorneys in October 2001.1 Further, defendant states that plaintiffs have alleged that the shingles began to fall in early 2001, almost four years after contract completion.

This action commenced in June 2002. In their complaint, plaintiffs assert a single cause of action for money damages for breach of contract resulting not only from the defendant’s unauthorized deviation from the contract specifications to install a particular manufacture and type of roofing shingles, but also the defective nature of the shingles installed regardless of the source of manufacture. The defendant interposed an answer that denied the contract breach, and asserted four affirmative defenses. One of those defenses asserted that plaintiffs’ action was barred for failure to comply with the requirements of article 36-B of the General Business Law, entitled “Warranties on Sales of New Homes.”2 Specifically, defendant’s affirmative defense alleges that the defect complained of did not arise within the statutory one-year warranty period pertaining to nonmaterial defects due to a failure to construct “in a skillful [739]*739manner (General Business Law § 777-a [l]).”3 As such, defendant alleges that the complaint fails to state a viable cause of action.

Plaintiffs now move to strike defendant’s affirmative defense based upon article 36-B of the General Business Law. They assert that, as a matter of law, the statute has no application to their case because no transfer of real property was involved in the parties’ transaction, a statutory reading not only disputed by the defendant, but the contrary providing the basis of defendant’s cross motion for summary judgment dismissing the complaint. The threshold issue for this court is to determine what, if any, application General Business Law article 36-B has to this case.

III. The Statutory New Home Warranty Law: History and Overview

It has long been cemented in the common law of contracts that, “[a]s a general rule, there is implied in every contract for work or services a duty to perform it skillfully, carefully, diligently, and in a workmanlike manner” (17 Am Jur 2d, Contracts § 627 [1964]). This general rule also has been long understood to apply to housing construction contracts. In Caceci v Di Canio Constr. Corp. (72 NY2d 52, 58 [1988]), a significant case in the history of the statutory new home warranty, a unanimous Court of Appeals speaking through Judge Bellacosa found both seminal and instructive Lutz v Bayberry Huntington (148 NYS2d 762 [Sup Ct, NY County 1956, Christ, J.]), where the home purchaser sought to recover damages because the house constructed for him by the defendant builder was defective. Justice Christ in that decision recognized for repleading purposes that the plaintiff’s cause of action was based upon an implied promise that the house would be constructed in a good and skillful manner:

“It is well established that every contract implies good faith and fair dealing between the parties. A corollary of this principle is the doctrine that in every contract there is an implied covenant that [740]*740neither party will do anything having the effect of destroying or injuring the right of the other party to receive the fruits of the contract. Thus, there was an implied term of the agreement here that the house would be constructed in a good and workmanlike manner * * * ” (id. at 768 [citations omitted]).

In this context, with the covenant of good and skillful construction being implied into the parties’ contract, the remedy for its breach is an action upon the contract. In New York, absent agreement to the contrary, the applicable limitations period for contract actions is six years from the date of breach (CPLR 213 [2]).

The law of contracts engages the law of real property in cases where title to real estate is transferred with the house.

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Cite This Page — Counsel Stack

Bluebook (online)
194 Misc. 2d 736, 755 N.Y.S.2d 197, 2002 N.Y. Misc. LEXIS 1565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gorsky-v-trious-custom-homes-inc-nysupct-2002.