Mount Vernon Contracting Corp. v. State

52 Misc. 2d 781, 276 N.Y.S.2d 1009, 1967 N.Y. Misc. LEXIS 1820
CourtNew York Court of Claims
DecidedJanuary 30, 1967
DocketClaim No. 45379
StatusPublished
Cited by6 cases

This text of 52 Misc. 2d 781 (Mount Vernon Contracting Corp. v. State) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mount Vernon Contracting Corp. v. State, 52 Misc. 2d 781, 276 N.Y.S.2d 1009, 1967 N.Y. Misc. LEXIS 1820 (N.Y. Super. Ct. 1967).

Opinion

Alexander Del Giorno, J.

This is a motion made by the State of New York for an order directing that the claim herein be dismissed upon the ground that it has not been timely filed.

On August 25, 1958, the claimant entered into a contract with the State known as Contract Nos. FICWE 58-1, FIHT 58-2 and FARC 58-67, for the construction of a portion of the Cross Westchester Expressway and New York State Thruway in Westchester County. Claimant completed this contract and the work was officially accepted by the New York State Department of Public Works on February 27, 1963. Normally, at this juncture, allowing for a period of time required to assemble facts and figures, the State issues its final estimate certifying the amount which it deems to be the balance due under the terms of the contract. It is the State’s contention that such an estimate was issued on February 21, 1964, and since the claim was not filed until June 24, 1965, a period in excess of six months from the claimed date of accrual, and no notice of intention to file a claim was ever filed, the' claim should be dismissed. Claimant, on the other hand, contends that the notice of February 21, 1964 was not a final estimate, and that it has never received a final estimate from the State.

A final payment under the terms of this contract was received by the claimant on June 3, 1965. Shortly thereafter, on June 24, 1965, the claim here in question was filed. Thus, a question is presented as to when claimant’s cause of action accrued. If, [783]*783as the State contends, the communication of February 21, 1964 was indeed a final estimate, then the time within which claimant had to file its claim or its notice of intention would begin to run at that point of time. (Terry Contr. v. State of New York, 51 Misc 2d 545.) If however, the document of February 21, 1964 was not a final estimate, thereby giving the contractor notice as to the amount the State intended to pay for the work performed, but merely constituted a revision prior to the issuance of the final estimate, the claim would not have accrued at that time, and if no final estimate had been issued prior to the forwarding of final payment, the present claim would be timely. The question presented to the court, therefore, is whether a final estimate was prepared and issued to claimant on February 21, 1964. It is the court’s opinion that it was not.

This court only recently, in the case of Rosenman Corp. v. State of New York (51 Misc 2d 773) had occasion to set forth its view as to what constituted a final estimate. We there, in essence, stated that the final estimate was the certification by the State that it had made a final check of the work performed and periodical payments made, and agreed or disagreed as to the balance due the claimant on the contract.

It is in the light of this standard that the true fabric of the document of February 21, 1964 which the State asserts constituted a final estimate, must be determined. Although the document itself is entitled final agreement, the covering letter accompanying it bears the legend proposed final agreement. At the very outset, then, a contradiction in terms is presented to the claimant. The word proposed given its normal meaning would indicate that a figure or figures are being offered for consideration and study by the recipient as to accuracy, while the word final would indicate that the enclosure is conclusive of the matter. Further, although the State ’.s motion is properly grounded upon the service of the final estimate as being the time of accrual of the claim, both sides, at the time of oral argument, referred to the service of a final agreement or final estimate interchangeably, as though these documents were one and the same. They are not, as we shall discuss subsequently.

Despite the fact that the State’s motion is grounded upon the lack of timely filing of the claim after the receipt of the final estimate, and the State’s acceptance in its memorandum of law of similar rulings of this court in Terry Contr. v. State of New York (supra) and Rosenman Corp. v. State of New York (supra) as regards the final estimate, it now appears to be taking the position, as indicated by a letter-memorandum submitted after argument of the motion, that the receipt of the final [784]*784agreement by the contractor is the time when the canse of action accrues.

The court is not unsympathetic to the dilemma in which the Attorney-General’s office finds itself regarding this problem of accrual of the claim; it also finds difficulty at times in resolving that very question. Nonetheless, a final estimate is the conclusive, albeit unilateral, interpretation by the State of the performance of the various items of the contract, wherein it indicates that the contract has been completed to the percentual extent set forth therein for each item, the amount agreed to and paid by the State and balance due, if any, from the State. This being .so, the court finds it necessary to again remind the State that motions of this nature, which seek the dismissal before trial of substantial claims, should rest securely upon a foundation of compliance by it with the requisites and formalities of a final estimate as mandated in the public works specifications and the standard public works agreement, which we find to be the only provisions which would apply in this controversy.

The public works specifications of January 2, 1957 provide at pages 60-61, as follows:

“ The final estimate will not be completed until all work required under the contract has been satisfactorily completed, all claims presented and all accounts for extra work and materials have been rendered, considered, and, if agreed to, made a part of such final estimate.
“ The Superintendent will approve a voucher for final payment based on the final estimate as prepared and approved by the District Engineer, less previous payments and any and all deductions authorized to be made by the Superintendent under the contract. Payment pursuant to such final voucher less any deductions authorized to be made by the Comptroller under the contract shall constitute the final payment and shall be made by the Comptroller.”

Article 10 of the standard public works agreement (p. 25) provides as follows:

‘ ‘ ARTICLE 10. FINAL PAYMENT.
“After the final acceptance of the work, the Engineer shall prepare a final estimate of the work done from actual measurements and computations relating to the same, and he shall compute the value of such work under and according to the terms of the contract. This estimate shall be certified to as to its correctness by the Engineer. Upon approval of such final estimate by the District Engineer, it shall be submitted to the Superintendent for final approval. The right, however, is hereby [785]*785reserved to the Superintendent to reject the whole or any portion of the final estimate, should the said certificate of the Engineer be found or known to be inconsistent with the terms of the agreement or otherwise improperly given. All certificates upon which partial payments may have been made being merely estimates, shall be subject to correction in the final certificate or estimate.”

It cannot be said that this claim accrued on February 21, 1964, since the claimant herein has not even to this date received a final estimate.

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Bluebook (online)
52 Misc. 2d 781, 276 N.Y.S.2d 1009, 1967 N.Y. Misc. LEXIS 1820, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mount-vernon-contracting-corp-v-state-nyclaimsct-1967.