Parkway Windows v. River Tower Associates

108 A.D.2d 660, 485 N.Y.S.2d 755, 1985 N.Y. App. Div. LEXIS 43009
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 21, 1985
StatusPublished
Cited by6 cases

This text of 108 A.D.2d 660 (Parkway Windows v. River Tower Associates) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parkway Windows v. River Tower Associates, 108 A.D.2d 660, 485 N.Y.S.2d 755, 1985 N.Y. App. Div. LEXIS 43009 (N.Y. Ct. App. 1985).

Opinion

Order of the Supreme Court, New York County (Grossman, J.), entered August 17, 1983, which granted defendants’ motion to dismiss the complaint to the extent, inter alia, of dismissing all causes of action against Tishman Construction Corporation, is unanimously modified, on the law, to the extent of denying defendant Tishman’s motion to dismiss as to the fourth, sixth, eleventh and twelfth causes of action, with leave to plaintiff to replead the tenth cause of action, and otherwise affirmed, without costs.

Appeal from the order of the Supreme Court, New York County (Grossman, J.), entered January 18, 1984, which, inter alia, denied plaintiff’s motion for reargument and granted defendants’, River Tower Associates and Tishman Construction Corporation, cross motion to dismiss the amended complaint in action No. 1, with leave to plaintiff to serve a proper amended complaint, is dismissed as nonappealable in part, and abandoned as to the balance, without costs.

Order of the Supreme Court, New York County (Gammerman, J.), entered July 17,1984, which granted defendant River Tower Associates’ motion for an order dismissing the repleaded eighth and ninth causes of action of plaintiff’s second amended complaint, is reversed, on the law and facts, without costs, the order vacated and the third amended complaint of March 20, 1984 deemed properly served.

By agreement dated December 22, 1980, Parkway Windows contracted to install windows at the building being constructed at 420 East 54th Street in Manhattan, for $1,250,000. The owner of the building, River Tower Associates, and the construction manager, Tishman Construction Corporation of New York, specifically acting “as agent for owner”, were signatories and named parties to the contract. Due to disputes over the performance of the contract, Tishman, “[a]s agent * * * for river tower associates”, served a notice of termination on Parkway on August 4, 1981, and in December 1981, owner River Tower [661]*661Associates commenced an action for breach of contract, breach of warranty, misrepresentation and fraud against Parkway (known herein as action No. 2).

In February 1983, Parkway Windows commenced a separate action (as opposed to counterclaiming in action No. 2) against River Tower Associates and Tishman. The first and second causes of action in the complaint were asserted against River Tower alone and were for the contract’s balance and for foreclosure of a lien; the last 11 causes of action were against both defendants.

The third through sixth causes of action, each for $75,000 compensatory damages and between $3 million and $5 million punitive damages, alleged defendants’ interference with plaintiff’s performance of the contract — the third for failing to give plaintiff access to the worksite at the designated commencement date of the job, February 1981, until mid-March; the fourth for active interference and harassment; the fifth for willful and gross negligence; and the sixth for intentional and malicious conduct.

The seventh cause of action asserted the unconscionability, and thus unenforceability, of the December 22, 1980 contract, such that plaintiff was entitled to the reasonable value of its work as opposed to the lesser contract price, and sought damages of $421,196.

The eighth cause of action for the same amount was based upon allegations that defendants compelled plaintiff to make so many changes in the work called for under the contract that defendants had repudiated and abandoned that contract (and apparently the original contract price) so that plaintiff could recover the greater, reasonable value of its work.

The ninth cause of action, for $1 million compensatory and $3 million punitive damages, asserted defendants withheld payments from plaintiff for the purpose of compelling plaintiff to perform extra work.

The tenth cause of action, for $1 million compensatory and $5 million punitive damages, alleged defendants’ payment of moneys due to plaintiff to third parties, without authorization from plaintiff, depriving plaintiff of its right to pay creditors and adversely affecting plaintiff’s credit standing.

The eleventh cause of action, for $1 million compensatory and $5 million punitive damages, asserted defendants’ refusal to allow plaintiff access to the worksite on August 4, 1981 and thereafter.

[662]*662The twelfth cause of action sought $10,000 compensatory and $10 million punitive damages based upon defendants’ conversion of plaintiff’s tools and materials between August 1 and 31, 1981.

And, finally, the thirteenth cause of action, for identical damages as the twelfth cause of action, is based upon allegations of defendants’ conspiracy to convert plaintiff’s property in August 1981.

Defendant Tishman moved to dismiss all causes of action against it pursuant to CPLR 3211 (a) (1), (7) and River Tower cross-moved to dismiss the second, third, fifth through seventh, and ninth through thirteenth causes of action against it pursuant to CPLR 3211 (a) (1), (7), (10). The reference to CPLR 3211 (a) (10) was based upon plaintiff’s failure to name a lienor, Hudson-Shatz Painting Company, as a party defendant in its second, foreclosure of lien, cause of action. Thus, plaintiff cross-moved for leave to serve a supplemental summons naming said entity as a party and to have the complaint deemed amended.

Special Term granted the motion to dismiss pursuant to CPLR 3211 (a) (7) only as to all claims against Tishman, all punitive damages claims as to both defendants and the seventh, ninth, tenth and thirteenth causes of action as against defendant River Tower, with leave to replead the ninth and tenth causes, and also granted plaintiff leave to serve an amended summons and complaint adding the additional lienor, correcting the defect of the second cause of action.

The court found Tishman was an agent for a disclosed principal and thus could not be liable under the contract and that all plaintiff’s purported tort claims were in truth of a contractual nature, or at least arose out of the contractual relationship of the parties, and therefore could not be maintained. Punitive damages were found not to be available as a remedy for a breach of contract. The seventh cause of action for unconscionability was found insufficient, as plaintiff failed to allege what clauses of the contract were unconscionable and failed to allege any oppression or lack of meaningful choice in the negotiation of the contract. Special Term found plaintiff was entitled only to interest lost on moneys wrongfully withheld or wrongfully paid to third-party creditors of plaintiff, and thus dismissed the ninth and tenth causes of action with leave to replead. The thirteenth cause of action for conspiracy was found to be nonexistent and to add nothing to the twelfth cause of action for conversion.

On August 29, 1983 plaintiff Parkway Windows obtained an order tolling the 20-day period in which it had to replead pending determination of a motion to reargue. Parkway Windows also sought for the first time to consolidate actions Nos. 1 [663]*663and 2 and for summary judgment dismissing certain causes of action against it in action No. 2.

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Cite This Page — Counsel Stack

Bluebook (online)
108 A.D.2d 660, 485 N.Y.S.2d 755, 1985 N.Y. App. Div. LEXIS 43009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parkway-windows-v-river-tower-associates-nyappdiv-1985.