John J. Creem Co. v. City of New York

188 A.D. 169, 177 N.Y.S. 229, 1919 N.Y. App. Div. LEXIS 7792

This text of 188 A.D. 169 (John J. Creem Co. v. City of New York) 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
John J. Creem Co. v. City of New York, 188 A.D. 169, 177 N.Y.S. 229, 1919 N.Y. App. Div. LEXIS 7792 (N.Y. Ct. App. 1919).

Opinion

Mills, J.:

This action was brought by the plaintiff, a contracting corporation, to recover from the defendant city a balance claimed by the plaintiff to be due for the construction by it of a section of a large trunk sewer in a Brooklyn street, under a written contract between the parties entered into on April 22, 1913, and performed by the plaintiff by April 24, 1915. The work amounted to a large sum, most of which was duly paid, and the controversy in the action relates to only .a few comparatively small items. The first of those items is the only one as to which a decision can be of importance as a [171]*171precedent. The appellant claims that similar items are involved in several cases or instances that await determination. At the conclusion of the trial each party moved for a direction of a verdict in its behalf. By consent of counsel the decision of the motions was reserved and briefs submitted. Subsequently the learned trial justice decided in favor of the defendant upon each claim involved in the action and directed a verdict for defendant accordingly.

At the end of the trial the plaintiff claimed the right to recover four items, viz.: (a) The sum of $1,823.20 withheld by the city for the cost to it of repaving within the so-called railroad area — that is, the space between the street railroad tracks, the rails of the tracks, and two feet in width outside of the tracks; (b) the sum of $580.01 withheld by the city for the cost of restoring pavement outside of the railroad area, which was in a state of disrepair when plaintiff began its work; (c) the sum of $255 for making fifty-one house connections; and (d) the sum of $1,061 for interest upon moneys unreasonably withheld by the city from the plaintiff — that is, the payment of which had been unreasonably delayed.

After examining the briefs submitted by the respective learned counsel I have concluded that there is no real, meritorious question here as to any of those items, except the first. As to the second item, plaintiff’s claim is that as matter of law, where a pavement which it was by the contract required to replace, was when it began its work, in a state of disrepair, it was not bound in restoring such pavement to put it in good condition, but apparently at the most only in the condition in which the plaintiff found it. That view appears to me forced and unnatural. At least I think that it was within the power of the city representative under the contract to construe the material provisions thereof as he did in that respect. I think, moreover, that the same view properly sustains the city’s action as to the third item, and that the trial court, being by the mutual motions to direct a verdict substituted for the jury as to the facts, acted within the fair compass of his authority in determining that there was no reasonable delay in payment, at least not except as to the withholding the amount of the first item, and, therefore, in denying the general claim for interest.

[172]*172The validity of the plaintiff’s claim as to the first item appears to depend, at least in the first instance, upon the proper construction to be given to section 39 of the contract, under the heading “ Specifications. General.” The appellant claims that the clause “ on account of any act or omission on the part of the Contractor, his agents, servants or employees, in the prosecution of the work,” qualifies or limits both of the preceding clauses, viz.: the clause “ shall be removed, destroyed or injured by the construction of the sewer and its appurtenances,” and the clause “ or which may be injured by traffic; ” while the respondent claims that it is perfectly plain that such clause limits or qualifies otily the latter prior clause. The learned trial justice in the commencement of his opinion adopted the view of the respondent as to this question of construction. He did that, however, by merely summarizing the provision of the first main clause with the limitation omitted and without at all discussing the opposing views upon the question of construction. His opinion rests substantially upon two propositions, namely, (a) that under the Railroad Law the street railroad company is not bound to restore the pavement within the railroad area after it has been removed to enable the city to build a sewer in the street beneath; and (b) that. the opinions of the corporation counsel to the contrary, which are in evidence, were given after the contract herein had been made and, therefore, could not have influenced the plaintiff to its prejudice in making its bid, Those opinions indicate clearly that during at least the early part of the work performed under this contract the corporation counsel distinctly advised that such duty of restoration did rest upon the railroad company. The opinion herein at Special Term (N. Y. L. J. April 11, 1918) cites the case of City of New York v. Whitridge (N. Y. L. J. Sept. 16, 1916; affd., without opinion, 187 App. Div. 882), wherein it was held that such duty of restoration did not rest upon the railroad company, and the pertinent provision of the Railroad Law, namely, section 178, was construed to that effect. (See Consol. Laws, chap. 49 [Laws of 1910, chap. 481], § 178, as amd. by Laws of 1912, chap. 368.) Much of the discussion of counsel here has been addressed to the question of the correctness of that decision or construction. While no doubt that is of great importance as [173]*173affording a reason why the city should have desired to have its contract mean what its counsel now claims that it does mean, yet it appears to me to be of no controlling force. Indeed it may fairly be inferred from the above-recited opinions of the corporation counsel, although of a later date, that when this contract was made the law department of the city considered that the true construction of that section of the Railroad Law did place upon the railroad company that duty of restoration; and the respondent’s counsel upon the argument here admits that that department did not change its such view until after the decision of the court in the Whitridge case above cited.

In the instant case the tracks and the pavement in question were actually removed by the railroad company, after notice by the city, to enable the appellant contractor to perform its work. Under the doctrine of City of New York v. Whitridge (supra) the railroad company was under no obligation to make such removal at its own expense, but in fact it did so. I am strongly impressed that the appellant’s construction of section 39 of the specifications is correct, and that the limiting clause “ on account,” etc., should be construed as limiting the clause “ removed, destroyed or injured by the construction of the sewer,” etc., as well as the later clause which may be injured by traffic.” I am also impressed that the construction so formerly made by the corporation counsel of section 178 of the Railroad Law is also correct, and that where a street railroad company’s tracks and the pavement between them in a given street have been removed in order to permit the city to lay a sewer in the street beneath, the work of restoring the tracks and such pavement after the construction of the sewer is a duty resting upon the railroad company within its obligation under that section 178 to keep in permanent repair.” The precise question here presented does not appear to have been decided in any other case than that of City of New York v. Whitridge (supra), and a later case at the New York Special Term, viz., Guaranty Trust Co. v. Second Ave. R. R. Co. (N. Y. L. J. Nov.

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Bluebook (online)
188 A.D. 169, 177 N.Y.S. 229, 1919 N.Y. App. Div. LEXIS 7792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-j-creem-co-v-city-of-new-york-nyappdiv-1919.