Manshul Construction Corp. v. Dormitory Authority of New York

111 Misc. 2d 209, 444 N.Y.S.2d 792, 1981 N.Y. Misc. LEXIS 3250
CourtNew York Supreme Court
DecidedJune 1, 1981
StatusPublished
Cited by12 cases

This text of 111 Misc. 2d 209 (Manshul Construction Corp. v. Dormitory Authority of New York) 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
Manshul Construction Corp. v. Dormitory Authority of New York, 111 Misc. 2d 209, 444 N.Y.S.2d 792, 1981 N.Y. Misc. LEXIS 3250 (N.Y. Super. Ct. 1981).

Opinion

OPINION OF THE COURT

Jules L. Spodek, J.

Plaintiff, Manshul Construction Corp. (Manshul), brings this suit against the Dormitory Authority of the State of New York (Dormitory Authority). The dispute arises out of the construction of the physical education building of Kingsborough Community College. The complaint contains three causes of action.

The first is an action essentially for “retainage” and contract balances in the amount of $441,009.90, which the defendant Dormitory Authority claims to have held on account to offset the value of claims asserted against the plaintiff Manshul. During trial, the defendant Dormitory Authority stipulated that it was holding the amount of $441,009.90 and that in computing any judgment said amount should properly be credited to the plaintiff Manshul.

The second cause of action is for compensation for “extras,” or for work done by the plaintiff, Manshul, not contemplated by the original agreement between the parties. Defendant Dormitory Authority maintains that what plaintiff considers extras were either called for in the original agreement or necessitated by plaintiff’s own failure to properly perform its obligations pursuant to the original agreement. Many items of extras were resolved by the parties before and during the course of this lengthy trial; some were credited to the plaintiff Manshul and others were withdrawn. Additionally, defendant Dormitory Authority’s counterclaims against plaintiff Manshul were also resolved by stipulation of the parties all resulting in a credit to the Dormitory Authority in the amount of $27,000.

The remaining items of the second cause of action, not resolved by the parties, were submitted to the jury by 20 [211]*211separate interrogatories each pertaining to a single remaining claim for an extra. The interrogatories did not contemplate overhead or profit.1 A stipulation was entered into by the parties to the effect that overhead and profit would be added by the court.

Plaintiff’s third cause of action was for additional expenses for field and home office overhead, the increased costs of “labor inefficiency” and for the loss of anticipated revenues, each resulting from the defendant Dormitory

[212]*212Authority’s alleged breach of contract in improperly delaying the completion of plaintiff Manshul’s. contractual obligations and from what plaintiff claims was an unwarranted acceleration order.

The defendant Dormitory Authority claims that the acceleration order was necessitated by delays caused by the plaintiff and by plaintiff’s subcontractors and was required in order to complete the contract on time. Defendant further contends that delays in timely completion of the contract were the fault of plaintiff, particularly as it regards the purported failure of plaintiff Manshul to properly perform its early pile-driving operations and to complete a relatively small number of “punch list” items. Defendant further contends that even if plaintiff was entitled to recovery for these items, plaintiff did not suffer real and/or measurable damages in the amounts claimed. The items of claim from the third cause of action were posed to the jury in interrogatories No. 21 through No. 24.2

After allowing for the ministerial addition of amounts for overhead and profit pursuant to the stipulation of the parties, the verdict was as follows:

Plaintiff’s case:

First cause of action $ 441,009.90

Second cause of action 463,341.45

Third cause of action 1,687,477.00

$2,591,828.35

Less:

Defendant’s counterclaim 27,400.00

AMOUNT OF VERDICT $ 2,564,428.353

Defendant Dormitory Authority moves to set aside the jury verdict as against the weight of the credible evidence. Defendant also seeks to set aside the verdict on the second cause of action as being the result of a jury compromise and seeks to set aside the jury award on interrogatories No. 21 through No. 24 as being legally insufficient and improper. [213]*213Plaintiff Manshul, of course, adamantly opposes each of defendant’s motions.

COMPROMISE VERDICT

The testimony adduced at trial was voluminous. Each side produced a parade of experts. Vast volumes of records and correspondence were entered into evidence. The trial itself stretched some nine weeks.

It is clear that the jury had a monumental task before it. Despite the highly technical nature of much of the evidence, the questions posed to the court from the deliberating jury evidenced an understanding of the issues involved and at no time did the jury suggest to the court that it was having difficulty reaching a verdict. Nor was there any pressure put upon the jury to return a verdict. It is therefore impossible to conclude that time pressures forced jurors to give up honestly and sincerely held convictions.

The law is clear that “[a] verdict that is the result of compromise and is not supported by the evidence cannot stand” (Tickner v Allen, 71 AD2d 835, 836; Parlato v Semmes Motors, 38 AD2d 844; 4 Weinstein-Korn-Miller, NY Civ Prac, par 4404.23). However, where the jury is presented with a range of testimony on damages it may believe that portion which it finds credible or worthy of belief. The fact that the verdict is in an amount equal to a percentage of the claim is not sufficient for proof of a compromise verdict under such circumstances. (Tickner v Allen, supra; also Camp v Camp 24 App Div 866.)

“[T]he test appears to be whether or not in the instant case there was surrender of conscientious convictions on one material issue by some jurors in return for a relinquishment of matters in their like settled opinion on another issue.” (Boudreau v Damas Food Mart Corp., 49 Misc 2d 913, 915, revd on other grounds 52 Misc 2d 930.) Practically restated, if “[b]y a tit-for-tat process jurors favoring no liability will yield to those favoring high damages by agreeing to liability with a reduced award,” or where liability is found but damages awarded are clearly inadequate, then an improper compromise verdict has resulted. (De Luca v Wells, 58 Misc 2d 878, 879; Geisel v Flushing Hosp. & Med. Center, 70 AD2d 927.)

[214]*214Where it appears “that the proof on the issues was inextricably interwoven or that error on some issues tainted findings on others,” then there must be a new trial on both liability and damages. (De Luca v Wells, supra, p 879.)

The mere fact that the dispute is sharp as to liability is not sufficient to show a compromise verdict. Nor is the inadequacy of the verdict alone sufficient to show an improper compromise.

“Inadequacy can come from niggardly 12 men as well as from compromising ones.” (De Luca v Wells, supra, p 879.)

However, when the dispute as to liability is sharp and the resulting verdict is clearly inadequate, and the findings are against the weight of the evidence, “it is only then that the stigma of compromise should be attached to [the jury’s] work.” (De Luca v Wells, supra, p 880.) This is only true, however, when “it is clear that under no rational process could the jury have arrived at the amount of damages they found” and the verdict they reached. (Klein v Eichen, 63 Misc 2d 590, 591.)

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Bluebook (online)
111 Misc. 2d 209, 444 N.Y.S.2d 792, 1981 N.Y. Misc. LEXIS 3250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manshul-construction-corp-v-dormitory-authority-of-new-york-nysupct-1981.