Sears, Roebuck & Co. v. Enco Associates, Inc.

54 A.D.2d 13, 385 N.Y.S.2d 613, 1976 N.Y. App. Div. LEXIS 13085
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 12, 1976
StatusPublished
Cited by10 cases

This text of 54 A.D.2d 13 (Sears, Roebuck & Co. v. Enco Associates, Inc.) 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
Sears, Roebuck & Co. v. Enco Associates, Inc., 54 A.D.2d 13, 385 N.Y.S.2d 613, 1976 N.Y. App. Div. LEXIS 13085 (N.Y. Ct. App. 1976).

Opinion

Hawkins, J.

The question to be determined is whether the three-year Statute of Limitations governing actions in negligence applies, or whether either, or both, of the causes of action, sounding respectively in breach of contract and implied warranty, accord the plaintiff the benefit of the six-year statute.

The appeal by the plaintiff is from an order (and the judgment entered thereon) granting the defendant’s motion to dismiss the complaint on the ground that the action is time-barred and that the second cause of action pleading breach of implied warranty fails to state a cause of action.

On May 15, 1967 the parties entered into a contract [15]*15whereby the defendant architects were to design a system of ramps to be integrated into the parking facilities of the plaintiff’s new store located in the City of White Plains. The ramps were to provide a system of ingress and egress to several parking decks located above the store premises. The facility was also to be connected with an adjoining municipal multi-level parking structure. Consequently, the structure’s plans required an elaborate system of ramps and heating units designed so as to permit removal of snow by mechanical means, thus reducing maintenance costs.

The contract was the standard American Institute of Architects form. Work was commenced in 1967 and completed in the spring of 1968. In April, 1970 the plaintiff observed cracks in the ramps. The action was initiated on June 23, 1972, with the complaint alleging damages in excess of $1,350,000, the cost of reconstruction and the consequential loss of business during the repairs amounting to $1,000,000 and $350,000, respectively.

The complaint alleges reliance upon the defendant’s competence properly to design the ramp and snow-melting pipes. The first cause of action is in negligence, the cracks in the ramp allegedly resulting from the defendant’s negligent design and engineering. The second cause of action pleads breach of implied warranty in that the defendant warranted that the structure built from the plans would be reasonably fit for the purposes intended. The third and concluding cause of action alleges that the defendant breached its contract by improperly designing the ramps.

The Special Term observed that it initially had to determine whether the claim, irrespective of labels, was essentially a claim for professional malpractice. If so found, the three-year Statute of Limitations would apply (citing Carr v Lipshie, 8 AD2d 330, affd 9 NY2d 983; Brick v Cohn-Hall-Marx Co., 276 NY 259, 264; Glens Falls Ins. Co. v Reynolds, 3 AD2d 686). As amplified by the bill of particulars, the Special Term concluded that the complaint pleaded an action tortious in nature, sounding in malpractice; hence the three-year limitations statute was held to apply.

After so determining, the corollary question to be considered was when the action accrued and the time began to run under CPLR 214. Citing and quoting from our holding in Sosnow v Paul (43 AD2d 978, affd 36 NY2d 780) that an action against an architect accrues upon the completion of the build[16]*16ing, and not upon the discovery of the building’s defects, the Special Term concluded (83 Mise 2d 552, 556): " '[t]he rule in cases where the gravamen of the suit is professional malpractice is now and has always been that the cause of action accrues upon the performance of the work by the professional (Gilbert Props, v Millstein, 40 AD2d 100, 102; Seger v Corn-well, 44 Misc 2d 994)’.”

The Special Term further noted that in Sosnow v Paul we had rejected the "discovery of the defect” approach of Flanagan v Mount Eden Gen. Hosp. (24 NY2d 427) as applicable only in foreign object medical malpractice cases; and further, that if the "continuous treatment theory” of Borgia v City of New York (12 NY2d 151) were to be applied, nevertheless, it would not avail plaintiff. The Special Term stated (p 557): "In the case at bar, whether the Statute of Limitations is held to begin to run on the performance of the work by the professional—sometime in 1967—or upon the completion of work in April, 1968 when the certificate of completion by defendant was issued, or even upon the date of the final inspection by the department of buildings in June 1968, it is clear that the date on which the cause of action accrued was more than three years before this action was commenced on June 28, 1972. Thus, it must be concluded that the cause of action for professional malpractice is barred by the New York Statute of Limitations.” (Sears, Roebuck & Co. v Enco Assoc., 83 Misc 2d 552, 557.)

In considering the second cause of action, breach of implied warranty of fitness for the purposes intended, the Special Term held that no such cause of action lies under New York Law against an architect, stating (p 557): "Thus, in Aegis Prods, v Arriflex Corp.of Amer. (25 AD2d 639), the court noted that implied warranties are limited to sales of goods and no warranty attaches to the performance of a service. (See Perl-mutter v Beth David Hosp., 308 NY 100; Galletta v Cataneo, NYLJ, Dec. 13, 1973, p 17, col 7.) If the service is performed negligently, the cause of action is based on negligence only. More recently, in Schenectady Steel Co. v Trimpoli Gen. Constr. Co. (43 AD2d 234), the court noted that the provisions of the Uniform Commercial Code do not apply to a contract for the rendition of services, but are limited to contracts for the sale of goods.”

Subsequent to the rendition of Special Term’s opinion herein on June 4, 1975, the Court of Appeals, in February, [17]*171976, decided the case of Matter of Paver & Wildfoerster (Catholic High School Assn.) (38 NY2d 669), in which it considered whether allegations that architectural services improperly rendered came within the category of professional malpractice or whether, under certain circumstances, architects were subject to contractual responsibility as against liability in tort. If the latter, the three-year Statute of Limitations applied. As the most recent expression by the Court of Appeals on the question, it behooves us to determine whether it is dispositive of the appeal at bar.

The issue centered upon the timeliness of the owner’s notice of arbitration for if "the reality” of the action was ex delicto, the arbitration proceeding would be time-barred. That contract, as at bar, was the standard A. I. A. contract, which provides for arbitration. (Neither party here has invoked the arbitration clause.) It posed the question: if an action is time-barred under a particular Statute of Limitations (CPLR 214), is it necessarily time-barred in arbitration under CPLR 7502 (subd. [b]). The Court of Appeals held (p 672): "In determining whether a claim for property damage is barred by the Statute of Limitations, however, the court should not be constrained by the special rules developed largely in personal injury actions and which depart from the general principle that time limitations depend upon, and are confined to, the form of the remedy.” The opinion then continues (p. 672): "The remedies available in arbitration are, of course, not confined to traditional forms at law. Thus, if a claim is substantially related to matters encompassed by the substantive agreement, it is immaterial, in applying the Statute of Limitations, whether it lies in 'contract’ or 'tort’.

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Bluebook (online)
54 A.D.2d 13, 385 N.Y.S.2d 613, 1976 N.Y. App. Div. LEXIS 13085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sears-roebuck-co-v-enco-associates-inc-nyappdiv-1976.