Making History: For First Time Ever, a New York Appeals Court Holds That an Interior Design Contract is One for Services, Not the Sale of Goods
Those of us who practice breach of contract law know that in New York the statute of limitations for breach of contract is 6 years, right? Not always. Under the Uniform Commercial Code (UCC), the statute of limitations for breach of contract for the sale of goods is only 4 years, not 6 years. However, breach of contract for services has a 6-year limitations period. The facts: I have an interior designer client. She was hired (by way of a written contract) by a wealthy couple to redecorate a number of their homes, including a mansion in Tuxedo Park . She comes and goes and performs the work over a 3-year period. Her work involves creating design and color schemes for each room, buying hand-picked and/or custom-ordered furniture, fixtures, wallpaper, etc. Those are “goods”, and she then re-sells the goods to the couple at 10%, 15%, 20%, mark-ups. These mark-ups are the only way she gets paid for her work. She does not charge a separate design fee. The couple makes some payments, but at t...