Steven Strong Development Corp. v. Washington Medical Associates

303 A.D.2d 878, 759 N.Y.S.2d 186, 2003 N.Y. App. Div. LEXIS 2493
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 13, 2003
StatusPublished
Cited by7 cases

This text of 303 A.D.2d 878 (Steven Strong Development Corp. v. Washington Medical 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
Steven Strong Development Corp. v. Washington Medical Associates, 303 A.D.2d 878, 759 N.Y.S.2d 186, 2003 N.Y. App. Div. LEXIS 2493 (N.Y. Ct. App. 2003).

Opinion

—Spain, J.

Appeal from a judgment of the Supreme Court (Teresi, J.), entered March 11, 2002 in Albany County, upon a decision of the court in favor of defendants.

On April 26, 1989, plaintiff, a real estate development company, entered a written development agreement signed by its president and sole stockholder, Steven Strong, with defendant Washington Medical Associates (hereinafter WMA), a general partnership which included Strong and defendant James Striker among its partners. WMA was formed for the purpose of developing a parcel of leased real property containing an existing building located at 1365 Washington Avenue in the City of Albany for use as a medical office building. Pursuant to the development agreement, plaintiff agreed that, in cooperation with WMA, it would, inter alia, oversee the conceptual design phase of the project; contract for and obtain approval for preliminary plans and specifications for the approved design; contract for the preparation of final plans; submit budgeting for construction costs; apply for the required governmental approvals; undertake the awarding of the [879]*879construction contract; secure suitable financing; and, finally, supervise the construction and completion of the project. The development agreement provided that plaintiff would receive a developer’s fee to be earned on the “ [d] ate of [substantial [completion” of the project, a phrase specifically defined in paragraph 1.1 of the agreement.

Over the course of the next several years, the scope of the planned project was expanded, WMA leased a larger adjacent parcel, several partners withdrew from WMA and, by 1995, WMA consisted of only Strong and Striker as equal partners who had reached an impasse. In January 1995, using plaintiffs letterhead, Strong sent Striker a letter acknowledging that their efforts on the project had failed, the property had been listed for sale and he had “acquiesced to foregoing [his] fee.” In November 1995, Strong assigned his interest in WMA to defendant Kathy Striker and neither plaintiff nor Strong performed further pursuant to the development agreement. WMA thereafter entered agreements with other development companies which oversaw the completion of two office buildings and a parking garage, during which, in May 1998, Strong sent WMA a demand to be paid his developer’s fee pursuant to their unfulfilled 1989 development agreement.

WMA refused to pay, prompting plaintiff to commence this action for breach of contract and unjust enrichment, claiming that 80% of the work required by the development agreement had been performed when defendants terminated plaintiffs services, thereby breaching that agreement. Following a bench trial, Supreme Court dismissed plaintiffs complaint with prejudice and ordered that judgment be entered in defendants’ favor based upon annexed itemized findings of fact and conclusions of law, concluding that plaintiff had failed to “substantially complete” its obligations under the development agreement so as to be entitled to the developer’s fee and, by 1995, had abandoned and repudiated the contract.

On plaintiffs appeal, we affirm, as a full review of the record provides compelling evidence — much of it not substantially refuted — to support Supreme Court’s findings and conclusions, as well as its underlying credibility determinations. In reviewing the court’s decision rendered after this nonjury trial, we have considered the probative weight of the evidence and the inferences to be drawn therefrom, although we have, as is customary, accorded considerable deference to the court’s findings of fact which rested in large measure on the credibility of witnesses, in view of its superior ability to observe and assess witnesses (see Pyramid Champlain Co. v Brosseau & Co., 267 [880]*880AD2d 539, 540-541 [1999], lv denied 94 NY2d 760 [2000]; Winkler v Kingston Hous. Auth., 259 AD2d 819, 823 [1999]).

Addressing plaintiff’s breach of contract cause of action, it is firmly established that as a general rule, “[t]he written terms and conditions of a contract define the rights and obligations of the parties where the language employed is clear and unambiguous” (Dierkes Transp. v Germantown Cent. School Dist., 295 AD2d 683, 684 [2002]; see W.W.W. Assoc. v Giancontieri, 77 NY2d 157, 162-163 [1990]; Hawkins Home Groups v Southern Energy Homes, 276 AD2d 866, 867 [2000]). Here, the development agreement set forth the exclusive terms under which plaintiff earned and was to be paid a developer’s fee, requiring “[substantial Completion of the [p]roject.” This condition precedent was contractually defined in paragraph 1.1 as the date on which plaintiff delivered to WMA a certificate of an architect stating that (1) the project has been completed subject only to the completion of items costing a total not to exceed $10,000, “which do not materially adversely affect the use of the [p]roject,” and (2) “all building and other required permits have been obtained and all applicable zoning and use laws, ordinances and regulations and agreements permit the occupancy and use of the [p]roject for the purposes contemplated.” No provision was included for partial payment of a developer’s fee based upon partial completion of plaintiff’s obligations under the development agreement.

The proof adduced at trial, including Strong’s testimony, overwhelmingly established that plaintiff never obtained construction financing, signed construction contracts, or began construction of any building and, consequently, that by 1995 plaintiff had not substantially completed its obligations outlined in the development agreement and which were a condition precedent to its entitlement to any developer fee. As such, plaintiff failed to prove its entitlement, under the terms of the agreement, to the developer’s fee. Plaintiff’s claim that it performed “approximately 80%” of the work contemplated by the agreement is both unsupported by the evidence and insufficient to support its claim to any fee provided by the agreement.

Likewise without merit is plaintiffs claim that its nonperformance of contractual obligations was attributable to WMA’s termination and replacement of it as developer — conduct which plaintiff describes as constituting a breach of their agreement. Initially, in the absence of some factor excusing compliance with the contract, plaintiff — in order to maintain an action for damages or specific performance of the agreement based upon [881]*881WMA’s nonperformance — “must demonstrate that a tender of [its] own performance was made” (Madison Invs. v Cohoes Assoc., 176 AD2d 1021, 1021 [1991], lv dismissed 79 NY2d 1040 [1992]; see First Frontier Pro Rodeo Circuit Finals v PRCA First Frontier Circuit, 291 AD2d 645, 645-646 [2002]). With regard to its undisputed nonperformance, plaintiff failed to adduce evidence in support of its claim that either its continued performance was obviated by acts of WMA amounting to an anticipatory breach or that WMA would be unable to perform (see Madison Invs. v Cohoes Assoc., supra at 1021-1022). Rather, as Supreme Court’s findings reflect, WMA’s replacement of plaintiff as the developer in 1996 came only after plaintiff failed to fulfill its contractual obligations; Strong had relinquished his interest in WMA, expressly conceded the failure of the project and waived the developer’s fee; and the parties to the agreement had reached an impasse. Plaintiff’s proof did not demonstrate that the actions of WMA or its partners either prevented plaintiffs performance by “greatly disrupting] and frustrating] [plaintiffs] performance”

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Bluebook (online)
303 A.D.2d 878, 759 N.Y.S.2d 186, 2003 N.Y. App. Div. LEXIS 2493, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steven-strong-development-corp-v-washington-medical-associates-nyappdiv-2003.