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Rockefeller University v. Tishman Construction Corp.

Citations: 232 A.D.2d 155; 647 N.Y.S.2d 513; 1996 N.Y. App. Div. LEXIS 9759

Court: Appellate Division of the Supreme Court of the State of New York; October 1, 1996; New York; State Appellate Court

Narrative Opinion Summary

The Supreme Court of New York County, under Justice Herman Cahn, dismissed Tishman Construction Corporation’s third-party complaints against Abramovitz-Kingsland-Schiff and Century Maxim Construction Corp., alongside claims for contribution and contractual indemnification against Westinghouse Elevator Company. The court reasoned that Tishman's claims for contribution were not viable as they were based on economic losses from a breach of contract rather than tort liability, emphasizing the necessity of tort liability for such claims, as supported by precedent cases like Bocre Leasing Corp. v General Motors Corp. The court further dismissed Tishman's claims for express and implied indemnification, interpreting relevant contractual provisions as unsupportive of indemnification and highlighting Tishman's actual fault due to active supervision of the construction. The court affirmed that contractual breaches do not give rise to tort claims absent an independent duty outside the contract, aligning with the principle underscored in Sommer v Federal Signal Corp. The lower court's decisions were upheld, dismissing all of Tishman’s claims with costs awarded to the appellees.

Legal Issues Addressed

Contractual Indemnification

Application: Tishman's claims for express contractual indemnification were dismissed due to the motion court's interpretation of the contractual provisions, finding no basis for indemnification.

Reasoning: Furthermore, the court upheld the dismissal of Tishman's claims for express contractual indemnification, agreeing with the motion court's interpretation of the relevant contractual provisions.

Contribution Claims in Contractual Disputes

Application: The court dismissed Tishman's contribution claims as they were based on economic losses from a breach of contract, not tort liability, which is necessary for contribution claims.

Reasoning: The court found that Tishman’s contribution claims were improperly grounded, as the main action complaint sought damages for economic losses due to a breach of contract rather than tort liability.

Implied Indemnification and Actual Fault

Application: Claims for implied indemnification were dismissed as Tishman was found to be at actual fault due to active supervision of the construction work.

Reasoning: This dismissal was based on Tishman's actual fault in supervising the work, rather than solely vicarious liability.

No Independent Tort Duty in Contractual Breaches

Application: The court referenced Sommer v Federal Signal Corp., affirming that contractual breaches do not give rise to tort claims without an independent duty.

Reasoning: Sommer v Federal Signal Corp., also supported the court's position by affirming that recovery for the contractual benefit of the bargain does not allow for tort claims where there’s no independent duty created outside of the contract.