Skip to main content

Recent Case Developments: Contractor Entitled to be Paid For Extra Work Not Part of Original Contract

On September 12, 2013, the Town of Kent (Putnam County) entered into a contract with a contractor to build a sewer. 

During construction, certain "conditions that were unexpected and unanticipated" arose, requiring the contractor to do "extra" work--things beyond the scope of work of the original contract. (The appeals court doesn't detail what this extra work was.)

The contractor performed the extra work, totaling around $380,000 in additional costs. For reasons not stated by the appeals court, the Town refused to pay for this extra work, and the contractor eventually sued the Town in May, 2015. 

The contractor moved for summary judgment in the lower court (a kind of mini-trial on paper), and the court awarded judgment in favor of the contractor for the $380,000. 

The Town appealed, but the appeals court sided with the contractor, saying that even though this "extra" work was not within the scope of work of the original contract, the contract gave the Town's engineer the authority to approve whatever unanticipated work needed to be done to get the sewer built. The contractor showed the court change orders, signed by the Town's engineer, approving the extra work the contractor had done and was seeking payment for. 

The only defense by the Town discussed in the decision was that the Town argued it was too early in the case to be granting summary judgment--more facts needed to be gathered. But the appeals court wasn't having it:
A party contending that a motion for summary judgment is premature is required to demonstrate that additional discovery might lead to relevant evidence or that the facts essential to oppose the motion are exclusively within the knowledge and control of the movant [here, the contractor] ... "The mere hope or speculation that evidence sufficient to defeat a motion for summary judgment may be uncovered during the discovery process is insufficient to deny the motion" ... Here, the Town failed to show that discovery would lead to relevant evidence.

Comments

Popular posts from this blog

Being Fired for Things an Employee Did On Their Own Time, Outside of Work: Legal or Not?

New York is an "at will" employment state, meaning that, in the absence of a contract, you can be fired at any time, for any reason, or for no reason at all, unless the reason is based on something like age, race, religion, disability, etc. (just a handful of categories). (Government employees have more protections than private-sector employees, such as First Amendment protections.) One of the few exceptions to the at-will employment rule is New York Labor Law §201-d. The statute is lengthy and has lots of caveats and qualifiers and defenses (for the employer). But the gist of § 201-d is that an employee can't be disciplined or fired (or not hired) for something they do on their own time, away from work, that is legal, and that is not against the employer's interests.  The statute and the reported cases mostly deal with "recreational" and "political" activities, and the cases can turn on whether something was a "recreational activity...

Recent Case Developments: Employment Contract Enforceable Against Employer Even Though Not Signed

The plaintiff is a modeling scout. Defendant modeling agency decided to hire him as a modeling scout for $190,000/year, plus bonuses. An employment contract was prepared. One provision of the contact said that if the plaintiff were ever fired without cause, he would be entitled to 6-months severance ($95,000). The contract also said that it could be signed in counterparts. The plaintiff signed the contract on August 18, 2015 and emailed his signature to the modeling agency. One of the agency's board members emailed back, saying "Welcome aboard. We'll countersign over the next few days." But no one from the agency ever signed the contract. Nevertheless, the plaintiff began working as a modeling scout, and the agency paid him according to the contract. But after six months, the agency decided to terminate him, without cause. The agency then refused to pay him the $95,000 severance, and the plaintiff brought a lawsuit for breach of contract. The modeling agency m...