Slate v. Schiavone Construction Co.

10 A.D.3d 1, 780 N.Y.S.2d 567, 2004 N.Y. App. Div. LEXIS 9413
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 8, 2004
StatusPublished
Cited by3 cases

This text of 10 A.D.3d 1 (Slate v. Schiavone Construction Co.) 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
Slate v. Schiavone Construction Co., 10 A.D.3d 1, 780 N.Y.S.2d 567, 2004 N.Y. App. Div. LEXIS 9413 (N.Y. Ct. App. 2004).

Opinion

OPINION OF THE COURT

Tom, J.

Plaintiff John Slate, an employee of nonparty G.M. Crocetti, Inc., sustained injury in a fall from a scaffold affixed to a flatbed truck while working within the Lincoln Tunnel on September 3, 1997. On September 1, 2000, two days prior to the expiration of the statute of limitations, plaintiff commenced this action by filing the summons and complaint, listing defendant Schiavone’s [3]*3mailing address as “40th Street & 11th Avenue, New York, New York 10018.” The complaint states claims under Labor Law §§ 200, 240 (1) and § 241 (6), alleging that the truck-mounted scaffold was not safely secured, as the result of which, plaintiff fell, sustaining injury to his right knee.

On October 5, 2000, at 1:43 p.m., plaintiff served the summons and complaint upon the corporate defendant by personally delivering a copy to one “ ‘John’ Thomas” at 40th Street and 11th Avenue. Mr. Thomas is identified as a “managing agent” of Schiavone and described as a male Caucasian, 40 years of age, brown hair, 165 pounds, standing 5 feet, 11 inches in height. Defendant failed to appear in answer to the summons and complaint and, on January 10, 2001, plaintiff mailed Schiavone a certified letter alerting it of a potential default. The delivery receipt was returned by the post office unsigned. A default judgment was subsequently entered against defendant on January 15, 2002. Shortly thereafter, the parties, by stipulation dated March 8, 2002, agreed to extend Schiavone’s time to answer to April 9, 2002. However, defendant never appeared and, instead, filed a motion to dismiss the complaint on the ground that plaintiff lacked in personam jurisdiction over defendant (CPLR 3211 [a] [8]).

Defendant conceded that it had performed construction work at 40th Street and 11th Avenue but denied having a business office in New York. It denied any knowledge of any employee named “ ‘John’ Thomas” purportedly serving as a “managing agent” at the construction site. Defendant therefore contended that personal service had not been properly effected upon an officer, director, managing agent or cashier of Schiavone pursuant to CPLR 311 (a) (1), or upon the Secretary of State or a registered agent, as provided in Business Corporation Law § 306 (b).

In opposition, plaintiff stated that counsel had recently assumed his representation from a previous attorney, who had brought a workers’ compensation claim on his behalf. The address used in serving process was found in the previous attorney’s notes and assumed to be correct. The affidavit indicating that personal service had been made upon defendant’s managing agent led counsel to believe that all was in order. Plaintiff, in his opposition papers, also informally requested relief in the form of a traverse hearing to resolve the issue of service or, in the alternative, sought an extension of time to make late service upon Schiavone pursuant to CPLR 306-b.

[4]*4Supreme Court denied defendant’s application to dismiss the complaint, exercising its discretion to extend the time for service in the interest of justice (CPLR 306-b). The court noted that plaintiff would be severely prejudiced by the loss of the opportunity to have his Labor Law claims adjudicated “simply because his attorney made a patently unwise assumption concerning defendant’s address and then failed to pursue even a cursory investigation into the address’s validity when indications that the address might be incorrect arose.”

Since defendant fully addressed the issue of whether plaintiff should be afforded relief pursuant to CPLR 306-b in its moving papers, the absence of a formal motion by plaintiff was not an impediment to the court’s award of such relief upon his informal request (see e.g. Kurtz v American Export Indus., 49 AD2d 557 [1975], affd 39 NY2d 738 [1976]). The relief granted was proper where plaintiffs complaint and affidavit indicated a meritorious Labor Law claim, plaintiffs newly retained counsel made a good faith, though flawed, attempt to serve defendant well within the statutorily prescribed 120-day period, and there was no showing that the grant of the requested extension would prejudice defendant (see Leader v Maroney, Ponzini & Spencer, 97 NY2d 95 [2001]).

The dissent expresses concern that the motion court essentially abdicated applying any standard when it exercised its discretion to grant an extension of time within which plaintiff might properly serve the complaint. Initially, the request in this case invoked the court’s interest of justice jurisdiction, as provided by CPLR 306-b, a more flexible standard than the alternative good cause standard employed in that provision. While the good cause standard requires a showing of due diligence regarding service of the complaint, the interest of justice standard allows the court to consider diligence as “simply one of many relevant factors” (Leader at 104) in determining whether or not to exercise its statutory power “to accommodate late service that might be due to mistake, confusion or oversight” (Leader at 105, quoting NY St Bar Assn Commercial & Fed Litig Section Comm on Civil Practice Law & Rules, Legislation Report No. 88, Bill Jacket, L 1997, ch 476, at 14). In that context, I respectfully disagree with the dissent’s characterization of the court’s exercise of its discretionary power.

The record indicates that the accident occurred in September 1997, and the complaint was filed on September 1, 2000. This was shortly before the expiration of the statute of limitations,' [5]*5but timely nonetheless. A month later, on October 5, 2000, plaintiff served defendant at the job site where plaintiff had been injured. Defendant admits to having performed work at that location, but claimed to have no business office there or elsewhere in New York. On the latter point, it appears that defendant, in fact, does maintain business offices in New York City. Plaintiff points out that a business directory search on the Internet for the business listing of “Schiavones” in New York had produced addresses in both Manhattan and the Bronx.

Although service at the job site was ineffective, the manner and place of service was not manifestly a display of bad faith. The dissent seems to disagree and even seems to suspect that substitute counsel was being duplicitous and that the original faulty service was perhaps intentionally misdirected. However, there is simply no evidence of record to support such a conclusion. By contrast, plaintiff’s apparent good faith was underscored when counsel followed up with a letter to defendant on January 10, 2001, alerting defendant of a potential default. When the certified mail return receipt came back, albeit unsigned, counsel reasonably believed that defendant had received the letter. While the dissent states that it is “hard-pressed to understand how the return of an unsigned return-receipt card could reasonably justify a belief that the letter had been received,” it ignores the fact that the letter itself was not returned as well as plaintiffs counsel’s explanation that, in his experience, it was not an unusual occurrence for the postal service to fail to properly process certified mail return-receipt cards. Thus, while appropriate caution may have warranted a further investigation regarding proper service on defendant, the record does not readily evince bad faith. To the contrary, it indicates a certain diligence, even if it was misplaced and inadequate.

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Bluebook (online)
10 A.D.3d 1, 780 N.Y.S.2d 567, 2004 N.Y. App. Div. LEXIS 9413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slate-v-schiavone-construction-co-nyappdiv-2004.