Mitchell v. Dunmore Realty Co.

141 N.Y.S. 89, 156 A.D. 117
Procedural entryThis page is a short order in Mitchell v. Dunmore Realty Co.. Read the opinion of the Court — 156 A.D. 117

Opinion

CLARKE, J.

This was an action to foreclose a mechanic’s lien. This court having determined on an interlocutory appeal that the notice of lien was invalid, (126 App. Div. 829, 111 N. Y. Supp. 322), a jury was waived upon the trial, and the case proceeded as an action for a personal judgment. By consent the claim between the Dunmore [90]*90Realty Company and the plaintiff was settled and discontinued, so that •the controversy is between the plaintiff and John L. Murray, the other ■■■defendants, subcontractors, having stipulated that their right to a re- ■ covery depended wholly upon the success of the plaintiff.

, The Dunmore Realty Company was the owner of a certain lot with "the building thereon in the city of New York. It made a long-term lease thereof to the defendant Murray. The plaintiff and Murray on August 16, 1906, executed a contract under seal, by which the plaintiff agreed to provide all the. materials and perform all the work for the ■construction, alteration, improvement, completion, and equipment of the building according to and as shown on the drawings and described in the plans and specifications prepared by Messrs. Buckman & Fox, -architects.

It was agreed:

“That the work included in this contract is to be done under the direction ■~o£ the said architects and that their decision as to. the true construction and meaning o£ the drawings and specifications shall be final;’’ that “no. alterations shall be made in the work, except upon written order' of the architects; the amount to be paid by the lessee or allowed by the contractor by virtue of such alterations to be stated in said order. Should the lessee and contractor not agree as to the .amount to be paid or allowed, the work shall go on under the order' required above, and in case of failure to agree, the determination of said amount shall be referred to arbitration as hereinafter provided.”

The contract contained the usual provisions as to diligence, aban-donment, delay, etc. The work was to be completed on or before De■cember 1, 1906. The contract also contained the following clauses:

“It is hereby mutually agreed between the parties hereto that the sum "to be paid by the lessee to the contractor for said work and materials shall be $84,500, upon the understanding that the following items included in said •specifications shall not exceed the sum set opposite thereto respectively," to wit: Steam heating and ventilation, $10,000; elevator work, $3,000; piumoing work, $8,000; electrical work, $8,000. And in the event that said items shall be done for less than said sums, then the contractor shall allow deductions to the lessee accordingly, and if such items should exceed the said -amounts then such additional payments shall be due to the contractor, subject to additions and deductions as hereinbefore provided, and that such sum shall be paid by the lessee to the contractor; only upon certificates of the architects, as follows: In cash, the sum of $57,250, and the balance in two • equal negotiable promissory notes at 6% interest and dated the day of final payment, upon completion of said work as certified by the architects, executed "by said Murray to the order of said contractor and due in three and six months after date respectively. The Dunmore Realty Company, the landlord of said premises, has agreed in its lease of said premises, to expend towards the alterations thereof the sum of at least $65,000, and in compliance therewith the sum of at least $30,000 shall be applied towards the payments ■ of work hereunder and shall he disbursed in accordance with an agreement •of even date herewith between said company and Murray. The cash payment hereunder shall be made in installments as the work progresses, upon "the presentation to the lessee of the written certificate of the architects to the effect that such work has been done and of the proportionate value thereof. Fifteen per centum of the value of all work done and materials furnished siiall be held back, however, and not certified until the contractor has received, less such fifteen per centum, the total cash payable hereunder, when, upon a certificate from the architects of further amounts due, the contractor shall receive further cash payment out of such fifteen per centum :So held back until he shall have received all the cash payable hereunder. [91]*91No such certificate furnished by the architects shall be payable until all subcontractors and materialmen have been paid for work done at the time of the architects’ last certificate. The final payment shall be made upon fulfillment of this contract and shall consist of two promissory notes, which notes shall be taken as and be full payment hereunder. * * * "And before the final payment shall be made hereunder by the delivery of said notes, the contractor shall produce and file with the architects duly acknowledged receipts of full payment from every subcontractor and materialman engaged upon said work and also the county clerk’s certificate that no liens exist of record against said building and premises and said contractor. « * * The final payment shall be made as above stated upon the completion of the work included in this contract, and all payments shall be due when certificates for the same are issued.”

There was a further provision for arbitration in case of a disagreement.

The complaint alleges that the amount of the contract price for the work and labor included in said contract was $100,121.70;

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Mitchell v. Dunmore Realty Co., 141 N.Y.S. 89, 156 A.D. 117 (N.Y. Ct. App. 1913).

141 N.Y.S. 89 (Mitchell v. Dunmore Realty Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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