Rusciano & Son Corp. v. State

201 Misc. 690, 110 N.Y.S.2d 770, 1952 N.Y. Misc. LEXIS 2457
CourtNew York Court of Claims
DecidedFebruary 24, 1952
DocketClaim No. 30274
StatusPublished
Cited by26 cases

This text of 201 Misc. 690 (Rusciano & Son 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
Rusciano & Son Corp. v. State, 201 Misc. 690, 110 N.Y.S.2d 770, 1952 N.Y. Misc. LEXIS 2457 (N.Y. Super. Ct. 1952).

Opinion

Ryan, J.

By written agreement dated August 20,1947, known as contract No. FA-VWE 47-2, claimant corporation agreed to construct for the State of New York a section of the Van Wyck Expressway in the borough of Queens on an itemized proposal totaling the sum of $2,558,748 of which sum nearly one half or $1,162,280 was bid for the construction of a trunk sewer including the sewer proper, which was about one and one-half miles in length, and also including various chambers, manholes, a parkway crossing, and an item for maintaining traffic. The contract provided that the quantities of materials to be furnished and the amount of work to be done as indicated in the proposal and on the plans were approximate only and that the State of New York was not to be held responsible that any of such quantities and amounts should obtain and that if during the construction of the work conditions should be encountered which ■ required the use of quantities in excess of quantities shown or indicated on the plans the contractor would be paid for the quantities at the prices bid for such items. The contract also provided that claimant agreed to accept the “ unit bid ” prices in compensation for any additions or deductions caused by variation in quantities due to more accurate measurement, [693]*693or by any changes or alterations in the plans or specifications of the work. Accordingly, as the work progressed, monthly estimates showed additions and deductions of quantities and ultimately the claimant was paid the sum of $2,264,241.99 as shown by estimate No. 23. This estimate was a statement of work done and materials in place up to May 21, 1949, the date of completion of the job which was accepted by the State of New York on June 20, 1949. On March 29, 1950, claimant received from the State of New York its final estimate wherein the State of New York admitted that it still owed claimant $71,060.49. This estimate was accompanied by a proposed agreement covering the final account. Claimant, however, advised the State of New York that it declined to execute the final agreement and by letter dated March 30, 1950, reminded the district engineer that it had previously claimed that it was entitled to payment for the excavation for the trunk sewer under item 5 of its itemized proposal and to payment for Portland and natural cements under items 15 and 15D respectively. The final estimate made no provision for payment of these items and claimant’s right to recover on them is now in issue before this court. In its letter to the district engineer claimant stated that it had been advised by counsel that, under the provisions of its contract, if the claimant corporation executed said final estimate it might be waiving its rights to recover on said items as claimed. This advice of counsel was apparently based upon the release clause in claimant’s contract. Of this we shall have more to say later.

On May 4,1950, claimant sued the State of New York demanding judgment on twenty-four separate causes of action in the total amount of $368,855.82 less the sum of $75.33 which claimant said had been overpaid by the State on one item. These demands included the amount which the State, by its final audit, admittedly owed claimant. By order dated May 24,1950, entered upon application of the claimant, this court directed a severance of the claim and a separate trial of that portion thereof relating to certain moneys retained by the State and on May 29, 1950, a consent judgment was entered in favor of the claimant and against the State in the amount of $60,006.32, without interest. By order dated February 19, 1951, entered upon application of the Attorney-General, this court further directed a severance of the claim and a separate trial of that portion thereof relating to moneys retained by the State and on February 21, 1951, a consent judgment was entered in favor of the claimant and against the State of New York in the amount of $11,054.17, with[694]*694out interest. Each consent judgment directed that payment and acceptance thereof was without prejudice to claimant’s right to prosecute the remainder of its claim. Each further directed that the question of interest on the amount awarded be reserved until the final determination of this claim. The two consent judgments reduced claimant’s causes of action to three and, with the aid of some slight revision in figures, reduced the amount demanded thereon to $297,722.40. The reserved question of claimant’s right to recover interest on those sums which the State admittedly owed it will he discussed hereinafter.

The dispute over payment for the excavation for the trunk sewer under item 5 of claimant’s itemized proposal and for Portland and natural cements under items 15 and 15D thereof arose soon after claimant commenced work on the contract. By letter dated December 12, 1947, addressed to the district engineer claimant informed the State of New York of its position in the following words: Under Estimate No. 3, we received payment for 672 linear feet of trunk sewer, Item 520C-D, installed under the above contract, but find that you have made no provision for payment under Item 5, Trench Excavation, required for trunk sewer, nor for payment under Items 15 and 15D for the Portland and Natural Cement used. Please see to it that payment for the above items is provided for in the next estimate.”

The reply of the District Engineer was dated December 16, 1947, and was as follows: To my mind, your letter of December 12th relative to payments under Estimate No. 3 is an obvious attempt to misconstrue the plans and specifications. I quote from the specifications: ‘ Items 520A, B, G and D, Trunk Sewer. The quantity of trunk sewer to be paid for shall be the number of feet of each size of sewer, measured along the center line of the work between payment lines of chambers and including the length through manholes, unless otherwise specified. The price bid per foot shall cover the price of all material, equipment, labor and incidental expense necessary to complete the work, except that Timber Sheeting and Bracing ordered left in place will be paid for under Item 83E and that separate payments for foundation timber and piles will be made under Item 520Q, 520R and 87S respectively.’ ”

The two letters above quoted were not offered and received as exhibits upon the trial but were read into the record by claimant’s counsel. Upon comparing the transcript of the stenographer’s minutes of trial with the contract document which is exhibit 7 before us we find that the quotations in the [695]*695district engineer’s letter are correct except that the word immediately preceding 520Q in the last line appears in the contract document as “ Items ” whereas the singular is used in the district engineer’s letter, if counsel’s reading thereof and the stenographer’s transcript of his minutes are both correct. This easy transposition of the singular with the plural, which is again manifested in the Attorney-General’s Requests to Find may be recalled a little later. The district engineer did not quote in his letter the following clause from the contract document which appeared on mimeographed sheet 39 of exhibit 7 immediately preceding the clauses which he did quote: ‘ ‘ measurement and payment Payment for the various parts of the trunk sewer will be made at the various prices bid for the items hereinafter listed. Reference made to items other than Item No. 520 in this specification is for the purpose of defining methods and materials only, in all such cases payment shall be included in Item No. 520 unless specified otherwise.”

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Bluebook (online)
201 Misc. 690, 110 N.Y.S.2d 770, 1952 N.Y. Misc. LEXIS 2457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rusciano-son-corp-v-state-nyclaimsct-1952.