Digesare Mechanical, Inc. v. U.W. Marx, Inc. stands for the principle that while parties are free to contract to to shorten the six-year statute of limitations period for breach of contract they cannot use such a limitation to effectively preclude such a claim in its entirety. 176 A.D.3d 1449, 112…
Parties to contracts and courts continue to grapple with the distinctions between and among contribution, contractual indemnification and common law indemnification in a commercial/construction setting. A good example is the recent case of Matzinger v. MAC II (S.D.N.Y. 17 Civ. 4813, July 17, 2018). Plaintiffs, the Matzingers, were the owners…
Subcontractors face significant challenges when they are confronted with a general contractor which fails or refuses to pay for a contract balance or extra work. For any one of innumerable reasons, general contractors can be undercapitalized such that even a victory at trial can produce a hollow result when the execution of a…
When the New York Prompt Payment Act (“PPA”) was first enacted (effective 1/14/2003), many believed that it would have a major impact on the payment process in the construction industry. That has not been the case. United States District Court Judge Jack Weinstein recognized the limited reach of the PPA…
General Business Law § 771 provides a host of requirements for home improvement contracts, chief among them being that such contracts must be in writing and signed by all parties. Additionally, the contract must contain the name, address, telephone number, and license number of the contractor, the dates that the…
Courts are increasingly being called upon to decide disputes over access to a neighboring property during construction, and their guide is RPAPL § 881, titled “Access to adjoining property to make improvements or repairs.” However, because the statue is vague, a body of cases interpreting RPAPL § 881 has developed…
The Second Department recently held in New York Military Academy v. NewOpen Group, 142 A.D.3d 489, 36 N.Y.S.3d 199 (2d Dep’t 2016), that a letter of intent (“LOI”) is unenforceable if it merely constitutes an agreement to agree. There is nothing especially new about that, but this decision serves as…
The sponsor of a condominium complex attempted to hold a subcontractor responsible for various construction defects in 610 West Realty, LLC v. Riverview West Contracting, LLC (N.Y. Sup. Ct. Co. Index No. 15537/2013). The Court, in a decision dated May 24, 2016, upheld the concept of privity in granting the…