Kornblut v. Chevron Oil Co.

88 Misc. 2d 651, 389 N.Y.S.2d 232, 1976 N.Y. Misc. LEXIS 2717
CourtNew York Supreme Court
DecidedNovember 3, 1976
StatusPublished
Cited by1 cases

This text of 88 Misc. 2d 651 (Kornblut v. Chevron Oil Co.) 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
Kornblut v. Chevron Oil Co., 88 Misc. 2d 651, 389 N.Y.S.2d 232, 1976 N.Y. Misc. LEXIS 2717 (N.Y. Super. Ct. 1976).

Opinion

Irving S. Aronin, J.

In this death action, the jury rendered a verdict in favor of the plaintiff and the defendants move to set the verdict aside and for the dismissal of the complaint contending, inter alia, that as a matter of law the complaint fails to state a cause of action as the lease and sublease herein did not create a third-party beneficiary contract entitling plaintiffs to a recovery.

This is at issue with plaintiff’s contention that the third-party beneficiary rule spelled out in the field of nonpublic contracts (Lawrence v Fox, 20 NY 268) applies to this public contract between the New York State Thruway and the Chevron Oil Co. which was assigned by Chevron Oil Co. to the defendant Ettinger. For the purpose of simplification, the prime lease will be referred to herein. The facts are as follows:

On August 2, 1970 at approximately 3:00 p.m. plaintiff’s [652]*652decedent was operating his motor vehicle on the New York State Thruway when his automobile became disabled with a flat tire at or about the vicinity of Mile Post 26 near the Village of Sloatsburg, New York. He was in the company of his wife and 12-year-old son.

Approximately one hour later a New York State trooper stopped and radioed to obtain assistance for the decedent by requesting a service truck from the defendant Ettinger who had the exclusive franchise for service along the Thruway at this location as the assignee of the defendant Chevron. This call was noted in the disabled vehicle log maintained by the New York State Thruway Authority. The trooper testified that when he made this call he was advised that some officer had previously reported this disabled vehicle. Calls for assistance were made by State troopers on two other occasions up to approximately 6:00 p.m., and each time decedent was advised that help would be forthcoming in approximately 20 minutes.

The day this occurrence took place was extremely hot with the temperature throughout the afternoon in the 90’s. After waiting up to approximately 6:30 p.m. decedent himself undertook to change the tire.

Decedent, an accountant, 50 years old, was described as a heavy man, unaccustomed to physical exertion, who had never before changed a flat tire. In undertaking this task, decedent displayed little familiarity with the procedure and on several occasions the jack slipped. After much effort, he succeeded in changing the tire. However, during the process, decedent became very ill, pale, and experienced chest pains to the point that he was unable to place the disabled tire in the trunk of his automobile, which task was performed by his wife and son.

In pain and in obvious physical distress, decedent, his wife and son entered the automobile, drove a short distance to a service area, where decedent was removed from the car in a near collapsed state. An ambulance was called and decedent was removed to a hospital where he became comatose and his condition was diagnosed as a myocardial infarction. He succumbed approximately 20 days later.

The evidence disclosed that calls for road service for other vehicles in distress received subsequent to the calls made on behalf of the decedent were responded to by the defendant Ettinger.

The proof further showed that the troopers who called on behalf of the decedent were advised of a service truck number [653]*653that was being dispatched to assist the decedent, but no service truck ever responded, nor was a truck ever dispatched to assist the decedent.

Received in evidence were the logs of the New York State Thruway Authority, the contracts between the State Thruway Authority and Chevron, and the contract between Chevron and Ettinger.

At the trial it was stipulated that the primary action between the plaintiff and the defendants was to be tried by court and jury and that the third-party action of Chevron against Ettinger should be decided by the court.

The complaint sets forth causes of action in contract and in negligence. The cause of action relating to negligence was dismissed and the court ruled, as a matter of law, that a third-party beneficiary contract existed entitling the plaintiff to standing before the court. Submitted to the jury were the issues of breach of contract, if any, proximate cause, foreseeability and damages. The jury rendered a verdict in favor of the plaintiff in the sum of $360,000 for wrongful death and $10,000 for pain and suffering. Presented for reconsideration in this posttrial motion is the court’s original determination that there existed a valid third-party beneficiary contract as a matter of law, and the jury’s finding that there was a breach of such contract that proximately resulted in decedent’s death.

It is well settled that a municipality or an agency or an authority of a municipality may enter into a contract for the benefit of a third party (10 NY Jur, Contracts, § 249, p 176; International Ry. Co. v Rann, 224 NY 83). While no case depicting a similar fact pattern in the case sub judice has come to light, there are, however, sufficient authorities to establish that for a public contract to be cast as one for the benefit of third parties, two essential elements are requisite. The first is that the municipality or authority must owe the beneficiary a legal duty in a primary sense and not incidentally, and the second is that the contract must clearly intend to have the members of the general public as third-party beneficiaries.

In New York Jurisprudence (10 NY Jur, Contracts, § 249, p 176, supra; citing, inter alia, New York Pneumatic Co. v Cox Constr. Co., 201 App Div 33, affd 235 NY 567; Little v Banks, 85 NY 258, 263), the rule as to third-party beneficiaries of a public contract is stated thusly: "The rule permitting a third-party beneficiary to sue upon a contract has been applied to [654]*654certain public contracts. Thus, contractors with the state or a municipality who assume, for a consideration received from the sovereign power, by covenant expressed or implied, to do certain things, are liable in case of neglect to perform such covenant, to a private action in a suit of a private party injured by such neglect, although the state or municipality might not be liable to such party, and such contract inures to the benefit of the individual who is interested in its performance. This rule has been based upon the theory that the contractor, having received a consideration from the sovereign power for performing a public duty, is liable for neglect to discharge that duty to anyone who thereby sustains special damages.”

In Moch Co. v Rensselaer Water Co. (247 NY 160, 164) the court observed: "The benefit, as it is sometimes said, must be one that is not merely incidental and secondary. * * * It must be primary and immediate in such a sense and to such a degree as to bespeak the assumption of a duty to make reparation directly to the individual members of the public if the benefit is lost. The field of obligation would be expanded beyond reasonable limits if less than this were to be demanded as a condition of liability.”

In the case at bar, the defendants presented no evidence or testimony, but relied solely on the subject contract to negate the third-party beneficiaries rule.

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Bluebook (online)
88 Misc. 2d 651, 389 N.Y.S.2d 232, 1976 N.Y. Misc. LEXIS 2717, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kornblut-v-chevron-oil-co-nysupct-1976.