Jones v. Savage

24 Misc. 158, 53 N.Y.S. 308
CourtNew York Supreme Court
DecidedJune 15, 1898
StatusPublished
Cited by1 cases

This text of 24 Misc. 158 (Jones v. Savage) 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
Jones v. Savage, 24 Misc. 158, 53 N.Y.S. 308 (N.Y. Super. Ct. 1898).

Opinion

Spring, J.

On the 25th day of September, 1895, William L. Savage & Company entered into a written agreement with the city of Buffalo to furnish the materials and do the mason-work in the construction of the Hasten Park High School building according to certain plans and specifications which were made a part of the contract. The agreed price to be paid Savage & Company for this work and the requisite materials was $45,999.99. Payments were to' be made as the work progressed upon the certificates of the architects excepting a reservation of 10 per centum, which was not to be paid until the entire fulfillment of the contract. The final payment was to be made upon the final certificate of the architects which was to be conclusive between the parties. The intermediate certificates were designed to furnish a basis for payments upon the contract price, but were evidently not expected to be accurate statements of the progress of the building, and the contract provided these were not to be conclusive. On the 9th of July, 1896, the [160]*160contractors, by a written instrument duly signed and presented to'the board of public works, abandoned the further prosecution of the work. In case of this contingency the city was permitted by the contract to complete the work prescribed therein at the expense of the contractors. The city availed itself of this' privilege^ and the architects have certified the expense incurred by the city in so doing was $6,135.94 in excess of the contract price. This statement of facts must establish that Savage & Company have no right of action against the city. They entered into an agreement which they not only have failed to complete, but its' completion by the city has added largely to the contract price. The’ architects have-so certified, and no fraud, mistake or corruption impeaches or countervails this certificate, and it, therefore, is conclusive as stipulated, in the contract. Sweet v. Morrison, 116 N. Y. 19; Byron v. Low, 109 id. 291; Everard v. Mayor, 89 Hun, 425-428; Dorwin v. Westbrook, 86 id. 363-365; Spink v. Co-operative Fire Ins. Co., 25 App. Div. 484; Stevens v. Met. Life Ins. Co., 13 id. 16; Smith v. Mayor, 12 id. 391, 394, 395; Sewer Commissioners v. Sullivan, 11 id. 472-477.

The plaintiff brought his action the latter part of June, 1896, before the abandonment by the contractors, and, of course, before the completion of the work. He sets forth in his complaint three causes of action:

First. An assigned demand of certain materialmen who had ' furnished brick for Savage & Company, which was used in the construction of the building.

Second. A like claim for materials furnished by plaintiff himself.

Third. A demand for moneys advanced by him to Savage & Company, used in paying laborers and carrying out the contract-,' and which was secured by an assignment of the contract of which the city had notice, and the claims for materials were filed as mechanics’ liens, upon the property.

However meritorious these demands may be against Savage & Company, they are of no higher grade and place plaintiff in no different position than if. pressed by the contractors. The rights of- the parties must still be determined by the agreement, and as the certificate of the architects bars any recovery by the contractors it is of like force in preventing recovery by the .plaintiff..

There are certain propositions urged by the plaintiff requiring some examination.

[161]*1611. He relies upon the fact that the statements from time to time certified to by the architects showed the work nearer completion than indicated by the final certificate, and urges he was deceived thereby. The agreement with which he must be assumed to have been familiar explicitly provided these intervening certificates were not to be conclusive, so the plaintiff and any others who furnished money or sold materials to Savage & Company relying upon these certified statements did so at their peril. The architects were not agents of the city to bind it in these statements, but they were for convenience to furnish some basis, some warrant for payments to be made to Savage & Company by the city. The concluding certificate of the architects with the statements accompanying it shows there was nothing due the contractors when this action was commenced. The payments had been made before they were earned. Savage & Company could not recover if they were plaintiffs in this action, as it would be incumbent upon them to present the final certificate showing completion in accordance with the agreement. D. & H. Canal Co. v. Penn. Coal Co., 50 N. Y. 250; Byron v. Low, 109 id. 291; Phelan v. Mayor, 119 id. 86; cases supra.

. In case of abandonment and consequent completion by the owner the 'contractors are entitled to the surplus, if any, remaining, but the condition precedent is still the architects’ certificate and it operates in favor as well as against the contractors. It is the judgment or award agreed to be final by the parties and has that effect unless impaired or invalidated by fraud or apparent mistake. The ¿act these contractors were paid more than they were eritdtled to receive under the contract could not now be urged in their behalf, and plaintiff possesses no more secure vantage ground than his assignors or debtors.

2. It is claimed at the time the liens were filed and at the time of the abandonment, the city was indebted to tl]e contractors on the contract and the lien of plaintiff attached to that indebtedness. There is no support for the premise. The whole fabric of that argument depends upon the accuracy of the intermediate certificates, and as I have stated, they are not binding against the city. As a matter of fact there was no indebtedness, but Savage & Company had been largely overpaid. ■ The retention of -the 10' per centum was for the benefit of the city (Weisemair v. City of Buffalo, 57 Hun, 48), and the liens could only attach to what was due upon the completion of the contract by Savage & Company. Brainard [162]*162v. County of Kings, 155 N. Y. 538; Van Clief v. Van Vechten, 130 id. 57l-577; Beardsley v. Cook, 143 id. 143; McChesney v. City of Syracuse, 75 Hun, 503.

In defining when liens of subcontractors attach the Court of Appeals in 130 N. Y. 571-577, and again indorsed in 155 id., at page 544, say:,

“ 1. If anything is due to the contractor, pursuant to the terms of the contract, when the lien is filed, it attaches to that extent. * * *

“3. H nothing is due to the contractor pursuant to the contract, when the lien is filed and he abandons the undertaking without just cause, but the owner completes the building according to the contract and under a provision thereof permitting it, the lien attaches to the extent of the difference between the cost of comple-tion and the amount unpaid, when the lien was filed.”

To determine whether anything was due at the time of the filing of the lien it is necessary to consider the situation in view of the abandonment and the subsequent completion of the work by the city, and it is apparent then that nothing was due when the liens were filed, but the city had exceeded its obligations in making payments.

3. The plaintiff with much vigor claims the abandonment-was fraudulently induced by the deputy comptroller. H so, then by his own statement Savage was in the mire with that official.

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Bluebook (online)
24 Misc. 158, 53 N.Y.S. 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-savage-nysupct-1898.