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Schiavone Construction Co. v. Triborough Bridge & Tunnel Authority

Citations: 209 A.D.2d 598; 619 N.Y.S.2d 117

Court: Appellate Division of the Supreme Court of the State of New York; November 20, 1994; New York; State Appellate Court

Narrative Opinion Summary

In this appellate case, the plaintiff contested the Supreme Court of Queens County's dismissal of certain claims in a breach of contract dispute. The appellate court reversed the lower court's dismissal of the ninth cause of action and modified the order to deny dismissal of the eighth cause, affirming the order as modified. The court emphasized that prime contractors could assert pass-through claims against the owner on behalf of subcontractors, supported by existing contractual and liquidating agreements. It was determined unnecessary for subcontractors to independently assert claims against the prime contractor before such claims could proceed. However, the court upheld the dismissal of the eleventh cause of action, holding that quantum meruit recovery was not permissible due to an existing contractual agreement between the parties. This decision was concurred by Justices Pizzuto, Santucci, Hart, and Goldstein, reinforcing the procedural propriety of pursuing subcontractor claims against the owner without requiring subcontractor action against the prime contractor, while also underscoring the legal constraints against quantum meruit claims where a valid contract exists.

Legal Issues Addressed

Pass-Through Claims by Prime Contractors

Application: The appellate court held that a prime contractor can pursue claims against the owner for the benefit of subcontractors, validating the contractor’s ability to sue on behalf of subcontractors through contractual and liquidating agreements.

Reasoning: The court emphasizes that a prime contractor can pursue claims against the owner for the benefit of subcontractors, supported by precedents that allow such 'pass through' claims.

Quantum Meruit Recovery

Application: The appellate court upheld the dismissal of the eleventh cause of action, reinforcing that recovery under quantum meruit is precluded by an existing contract between the parties.

Reasoning: The eleventh cause of action was properly dismissed since recovery under quantum meruit is barred by the existing contract between the parties.

Subcontractor Claims Against Prime Contractors

Application: The court determined that it is not necessary for the subcontractor to assert a claim against the prime contractor as a prerequisite for the prime contractor's action against the owner.

Reasoning: The court concludes that it is not necessary for the subcontractor to assert a claim against the prime contractor as a condition for the prime contractor's suit against the owner.