Tully & Di Napoli, Inc. v. State

51 Misc. 2d 11, 272 N.Y.S.2d 667, 1966 N.Y. Misc. LEXIS 1635
CourtNew York Court of Claims
DecidedJuly 29, 1966
DocketClaim No. 46282
StatusPublished
Cited by6 cases

This text of 51 Misc. 2d 11 (Tully & Di Napoli, Inc. 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
Tully & Di Napoli, Inc. v. State, 51 Misc. 2d 11, 272 N.Y.S.2d 667, 1966 N.Y. Misc. LEXIS 1635 (N.Y. Super. Ct. 1966).

Opinion

Alexander Del Giorno, J.

This is a motion by the State for' an order dismissing the claim of Nicholas Di Henna & Sons, Inc., the subcontractor claimant. Motion is granted.

On June 18, 1959, claimant Tully & Di Napoli, Inc., entered into a contract with the State, No. FIBE 59 — 1, for the construction of Bruckner Expressway in Bronx County.

On June 18, 1959, anticipatory to the award of the contract to it, Tully • & Di Napoli, Inc., entered into a substantial subcontract with the claimant Nicholas Di Henna & Sons, Inc., which was finalized after the execution of the Tully contract with the State and approval of Di Henna by the State.

In accordance with the Public Works Department specifications of January 2, 1957, Tully submitted to the State for its approval the Di Henna contract which the Department of Public Works approved on July 20, 1959.

[12]*12The language of the subcontract agreement underlies a prevalent fear by subcontractors that the occasion may arise whereby the contractor’s portion of the claim may be so small or be so incumbered that the contractor may not care to file a claim or, perhaps, may lack funds to pay counsel, experts, etc., to prosecute the claim. This type of agreement is loaded with assurances and almost guarantees by the contractor that not only will he be fair to the subcontractor on the established subcontract agreement, but will pursue on his behalf the claim, to the end that the subcontractor, too, will receive whatever may be proven to be due to him out of a possible award.

This fear of possible difficulties in proving to the court what may be due to the subcontractor as well as the collection of the amount proven is prevalent throughout this type of public subcontracts, as the court has discovered in many meetings and conferences with those in the business, including attorneys who specialize in this difficult trial work.

It would seem to .the court that a few changes in our statute law or the constitutional provisions would produce salutary results, beneficial to all involved, including the State, and would expedite trial procedure.

On its face the claim seems substantial regarding the claims of both contractor and subcontractor. The issue here is not whether it is substantial and meritorious but whether the subcontractor has a right to have its name in the title of the claim as one of the claimants. The court holds that Tully may mention Di Henna in the body of the claim as often as it is deemed necessary to describe the particular work for which Di Henna claims and the amount thereof. Only in that way may Tully bring before the court the total of its claim against the State. That, however, may be done only as a reference and a basis for justifying the proof to be offered by Tully.

In this regard, and before any further discussion of the present motion, the court grants the motion to strike out the name of the subcontractor from the title of the claim, but determines, under the rules of fair play, simple justice, the avoidance of repetitious suites, and of right, etc., that the entire claim may remain as the claim of claimant Tully & Di Napoli, Inc., which the court considers as a follow-up of its notice of intention to file a claim. Whatever sums are to be paid by Tully to Di Henna may be determined according to their liquidating agreement of November 24, 1965. The order to be entered shall state these facts.

The subcontractor insists that he has a right to remain as a claimant and calls upon the decision of this court in Ottaviano v. [13]*13State of New York (Claim No. 42583), among others, to sustain its position. In that ease, the title of the claim bore the names of the contractor, many subcontractors, as well as financial assignees who had made loans to Ottaviano to whom he had assigned to the extent of the loan his claim as a guarantee of payment. In addition to the State, the Thruway Authority was also named as a defendant. Upon the argument of the motion on the return date thereof, the court immediately granted the State’s motion to dismiss the claims of the financial assignees, but let the balance of the claims of the contractor and subcontractors stand as they were for the reason that at that time it was not entirely clear as to whether or not the claims of the subcontractors could stand against the Thruway Authority if not against the State. The order of the court specified that the denial of the entire motion was without prejudice to the State’s renewing said motion at any time before trial or at the trial itself. A reading of the order made in the Ottaviano case clearly indicates that it was not a denial of the State’s motion but it was qualified by the facts above mentioned.

Tully & Di Napoli, Inc., on October 26, 1961, filed its notice of intention to file a claim in which it not only made claim for the subject matter now specified in the claim, but also included therein the substance of what is now Di Henna’s claim.

In the liquidating agreement of November 24, 1965, among other things, the contractor and subcontractor agreed thus:

Contractor shall present to the State of New York in the form and in the manner required by the contract and specifications and by claim to the Court of Claims of the State of New York, Subcontractor’s claims as set forth in Schedule “A” [of liquidating agreement], arising out of, under, or in connection with the subcontract performed as a part of the work under the contract, liability and obligation for which is, as aforesaid hereby acknowledged by Contractor, said obligation being expressly conditioned as hereinafter provided in this agreement, together with other and further claims which Contractor may have and the claims of other subcontractors, if any.
The liability and obligation of Contractor to Subcontractor to pay said claims of Subcontractor as set forth in Schedule “A” is conditioned upon, payable only from and out of, and limited to, collection or recovery by Contractor from The State of New York in the Court of Claims of The State of New York or as the result of appeal.
Contractor agrees that promptly following the making of the Final Estimate under the contract, it will institute in its own name a claim, in accordance with the laws of the State of New York in the Court of Claims of that State to recover, with interest, the amounts due to Contractor for unpaid balance of amounts earned by Contractor in its performance of the contract and any supplemental agreements in connection therewith and for retained percentages, and also for the amount of the claims as set forth in Schedule “ A ”, for which Contractor has and does acknowledge liability, which may include any other and further claims of Contractor or Subcontractor as promptly as may be possible.
[14]*14It is agreed by and between the parties hereto that the claim of Subcontractor as set forth in Schedule “A”, for which Contractor’s liability to Subcontractor has been and is acknowledged, shall be prepared by counsel designated by Subcontractor for presentation as a part of the claim to be made in the Court of Claims by Contractor against the State of New York.

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Bluebook (online)
51 Misc. 2d 11, 272 N.Y.S.2d 667, 1966 N.Y. Misc. LEXIS 1635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tully-di-napoli-inc-v-state-nyclaimsct-1966.