HTRF Ventures, LLC v. Permasteelisa N. Am. Corp.

2021 NY Slip Op 00388
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 26, 2021
DocketIndex No. 655970/16 Appeal No. 12026 Case No. 2019-5555
StatusPublished
Cited by1 cases

This text of 2021 NY Slip Op 00388 (HTRF Ventures, LLC v. Permasteelisa N. Am. Corp.) 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
HTRF Ventures, LLC v. Permasteelisa N. Am. Corp., 2021 NY Slip Op 00388 (N.Y. Ct. App. 2021).

Opinion

HTRF Ventures, LLC v Permasteelisa N. Am. Corp. (2021 NY Slip Op 00388)
HTRF Ventures, LLC v Permasteelisa N. Am. Corp.
2021 NY Slip Op 00388
Decided on January 26, 2021
Appellate Division, First Department
Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.
This opinion is uncorrected and subject to revision before publication in the Official Reports.


Decided and Entered: January 26, 2021
Before: Webber, J.P., Mazzarelli, Oing, Shulman, JJ.

Index No. 655970/16 Appeal No. 12026 Case No. 2019-5555

[*1]HTRF Ventures, LLC, Plaintiff-Respondent,

v

Permasteelisa North America Corporation, Defendant-Appellant.


Wasserman Grubin & Rogers, LLP, New York (Michael T. Rogers of counsel), for appellant.

Wilmer Cutler Pickering Hale and Dorr, LLP, Washington, DC (Brent Gurney of the bar of the District of Columbia, admitted pro hac vice, of counsel), for respondent.



This appeal involves the Inter Active Corporation Building (IAC Building), located in Manhattan's Chelsea, which is the first building in New York City designed by the legendary architect Frank Gehry. It is the global headquarters of IAC/InterActive Corp (IAC), a leading media and internet company, and owner of Angie's List, Care.com, Handy, HomeAdvisor, Investopedia, Match.com, OkCupid, The Daily Beast, Tinder, Vimeo, and dozens of other top internet businesses. What sets the IAC Building apart from the City's other skyscrapers is its defining feature — a distinctive glass curtain wall faÇade.

Plaintiff, HTRF Ventures LLC (HTRF), owns the building. On October 6, 2005, HTRF, through its agent Georgetown 19th Street Development, LLC, entered into a construction management agreement (CMA), dated April 1, 2003, with nonparty Turner Construction Company (Turner) for the construction of the IAC Building. As is relevant to the issue herein, the CMA requires Turner to obtain from subcontractors and manufacturers "warranties which meet or exceed the requirements of the Contract Documents."

On November 30, 2004, Turner entered into a design build agreement (DBA) with defendant, Permasteelisa North America Corporation (Permasteelisa), to construct and install the glass curtain wall faÇade. In addition, the parties incorporated into the DBA the "Curtain Wall Performance Specification," (Specification), dated August 13, 2004, which sets forth the requirements relating to the construction of the curtain wall. The glass curtain wall system consists of double-glazed units (DGUs) made up of two or more windowpanes sealed with a polyisobutylene (PIB) sealant as a primary sealant. Nonparty Zadra Vetri, S.p.A. (Zadra) manufactured the DGUs. A structural weather-tight silicone, applied as the secondary sealant, was supplied by nonparty Dow Corning Company. The exterior work for the IAC Building reached substantial completion on November 22, 2006. In accordance with the Specification's warranty provision, Permasteelisa submitted its 5-year warranty for materials and labor workmanship on January 1, 2007. Permasteelisa also provided a 10-year warranty from Zadra, on January 20, 2008, and a 20-year warranty from Dow Corning, on February 5, 2008.

In October 2015, HTRF discovered drip marks within the DGUs. HTRF retained the firm Wiss, Janney, Elstner Associates, Inc. (WJE) to conduct surveys and an analysis of the PIB sealant. According to Daniel Lemieux of WJE, the PIB sealant lacked the necessary fillers, antioxidants, and UV stabilizers to protect it from sunlight and heat. As a consequence, WJE determined that the PIB sealant was defective. HTRF informed Permasteelisa of the issue of the migrating PIB on October 6, 2015. By letters, dated November 17, 2015 and January 15, 2016, HTRF again informed Permasteelisa of the PIB sealant defect and demanded that Permasteelisa honor its guarantees and warranties contained in the contract documents. Permasteelisa did not comply [*2]with the demand. HTRF commenced this action on November 15, 2016.[FN1]

Permasteelisa moved for summary judgment dismissing the complaint. It argued, inter alia, that the Specification only required it to submit for itself a 5-year warranty for materials and labor for the curtain wall system. For support, Permasteelisa sought to introduce extrinsic evidence to show that the parties intended Zadra, the manufacturer of the DGUs, to provide a 10-year warranty set forth in the Specification. That said, Permasteelisa argued that the accrual date for the breach of contract and warranty claims occurred on November 22, 2006, the substantial completion date, and that HTRF's commencement of this action on November 15, 2016, well beyond its 5-year warranty, was untimely.

Supreme Court rejected Permasteelisa's arguments, finding the relevant documents unambiguous, and thus eliminating the need to resort to extrinsic evidence. The court found that the language of the DBA established that not only did Permasteelisa agree to provide a 5-year warranty for its workmanship, but it also agreed to be bound by the 10-year warranty period for the PIB sealant. Thus, Supreme Court held that HTRF's action was not time-barred, and denied Permasteelisa's motion for summary judgment to dismiss the breach of contract and breach of express warranty claims.[FN2]

As to the threshold issue of whether HTRF is an intended third-party beneficiary of the DBA between Permasteelisa and Turner, we find that it is, and adopt the dissent's analysis on this issue. We turn to the more material issue on appeal — whether the Specification and Article XXI of the DBA obligate Permasteelisa to address the DGU panels' alleged PIB sealant failure based on the 10-year warranty period for that sealant. In deciding this issue, we agree with the dissent's view that the contractual provisions implicated in this appeal are unambiguous.

Permasteelisa continues to argue on appeal that it agreed only to issue a 5-year warranty, that Zadra's 10-year warranty and Dow Corning's 20-year warranty were merely "pass-thru warranties," and that Supreme Court erred in imposing on it Zadra's 10-year warranty. Specifically, Permasteelisa argues that the Specification required it to "submit" a 5-year warranty for its workmanship and to obtain warranties from others, and that, as is relevant here, it did "provide" a 10-year warranty for the PIB sealant from Zadra and a 20-year warranty for structural sealants from Dow Corning. Permasteelisa further argues that nothing in the Specification or the DBA identifies and imposes on it further or additional warranties other than those set forth in these agreements, pointing for support to the disclaimer set forth in its warranty. Thus, according to Permasteelisa, the DBA and Specification demonstrate that it agreed only to warranty its work in installing the DGUs on the curtain wall system for five years and that the suppliers of the different components that make up the DGUs [*3]would warranty the products they supplied. In addition, Permasteelisa contends that even if there were an ambiguity, the extrinsic evidence unequivocally confirms that the project participants intended Permasteelisa to submit only a 5-year warranty that was independent of the additional warranties provided by Zadra and Dow Corning. For the reasons that follow, we find these arguments unavailing.

Article XXI of the DBA, entitled "Guarantees," provides, in relevant part:

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HTRF Ventures, LLC v. Permasteelisa N. Am. Corp.
2021 NY Slip Op 00388 (Appellate Division of the Supreme Court of New York, 2021)

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2021 NY Slip Op 00388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/htrf-ventures-llc-v-permasteelisa-n-am-corp-nyappdiv-2021.