What’s New

• Legal Alert Vol. 3 No. 1 - Help From New York Courts For Unpaid Material Suppliers.  In 2003 the New York State Court of Appeals ruled on a public project the time within which material supplier had to give notice of its claim for payment under a statutory payment bond is measured from the date of the last delivery of materials for which the claim is made.
   
• Legal Alert Vol. 3 No. 2 Failure to Inspect Work Site Prior to Bid Costs Contractor Its Claim.  Heed the instructions to bidders is the lesson from a recent case in the Appellate Division, Second Department.  The Contractor didn’t and lost it $772,000 claim, after winning at trail.
   
• Legal Alert Vol. 3 No. 3 - Close Call For Contractor On Surety’s Release to DASNY.  Pay attention to lien waivers, lien releases and retainage reduction release forms that you and your surety may be asked to sign.
   
• Legal Alert Vol. 3 No. 4 - Municipality’s Reasonable Doubt About Lawful Purpose Building Doom Project.  Municipal authorities are not required to allow a property owner to develop its property where there is reason doubt the building would be used for a lawful (zoning permitted) purpose.
   
• Legal Alert Vol. 3 No. 5 - Changes Ahead for New York Public Works Projects.  The Wicks Law, love it or hate it, has been around New York public works projects since 1921
   
• Legal Alert Vol. 3 No. 6 - Worker Notification - Wage Rates.  If you do public works contracting in New York, be aware of the new wage rate notification requirement under section 220 of the Labor Law, which became effective on February 24, 2008, even though it was not approved until April 23, 2008.
   
• Legal Alert Vol. 3 No. 7 - Home Improvement Contractor License - New Home.  Do you need a home improvement contractor license when you perform work associated with the construction of a new home?  The appellate Division Second Department says yes, if the work you are performing, in this case landscaping, is not part of the construction of the new home’s envelope. 
   
• Legal Alert Vol. 3 No. 8 - NYC Building Owner Can Recover All Rent Stabilized Apartments for Personal Use.  In a decision that will surely make NYC rent stabilized tenants unhappy, the New York Court of Appeals has ruled that the husband and wife owners of a five story, 15-unit apartment building in Manhattan, have the right to recover possession of all six of the rent stabilized apartments in the building (located on different floors) for the husband’s personal use as his primary residence.
   
• Legal Alert Vol. 3 No. 9 - Contractor’s Early Completion Bonus Incentive Not Barred by NYC No-Damage-For-Delay Provision. The Appellate Division First Department has recently ruled that New York City’s no-damages-for-delay contract provision will not bar a Contractor’s claim for an incentive bonus for early completion.
   
• Legal Alert Vol. 3 No. 10 - The E-Verify Electronic Employment Verification System is Up and Running.  Soon, contractors entering into federal works contracts will be required to agree to use the electronic employment verification system (“E-Verify” ), administered by the Department of Homeland Security (“DHS”), to confirm the employment eligibility of their workforce.  E-Verify is an internet-based system that will take in information that an employer obtains from each newly hired employee on Form I-9, and it will check that information against records contained in DHS and Social Security Administration databases.
   
• Legal Alert Vol. 3 No. 11 - Letter of Intent, without an Express Reservation Not to Be Bound, is Binding.  The Appellate Division, Second Department recently affirmed a lower court decision that held that a Letter of Intent (“LOI”) together with expressly incorporated documents constituted a valid and enforceable construction contract.  Although the decision is sparse as to factual details, the court reiterated the rule that an LOI that manifests the parties’ intent to be bound by its terms, and that contains the price, scope of work and time for performance - but does not contain an express reservation by either party of their right not be bound until a more formal agreement is signed – is a binding contract.
   
• Legal Alert Vol. 3 No. 12 - Allowance Change Orders Will Be Issued By The NYC School Construction Authority.  Contractors who perform (or intend to perform) public contracting work for the NYC School Construction Authority, may have reason to rejoice (a little). As of March 19, 2008, a new provision has been added to the SCA’s Construction General Conditions. New Section 7.04, “Allowance Change Orders” should alleviate some of the economic pressure faced by Contractors and Subcontractors when they are directed to perform changed work, but are unable to agree with the SCA as to the value and credits for that work.
   
• Legal Alert Vol. 3 No. 13 - Attempted Bribery of City Employees - Contractor Forfeits $260,000 Balance owed on Contract.  The Appellate Division, First Department, has ruled that a Contractor must forfeit more than $260,000 owed to it by the City under a contract to renovate the Brooklyn Borough Hall, because its president attempted to bribe two City workers who were reviewing a $101,000 change order request submitted by the contractor. The Contractor’s president had left envelopes containing $3,000 and a Christmas card on the employees’ desks.  One envelope also contained the pending change order request. After being alerted by its employees, the City’s Department of Investigation obtained the Contractor’s president’s admission that he had left the envelopes. The City cancelled the almost fully-completed contract and told the Contractor that no further payment would be made.
   
• Legal Alert Vol. 3 No. 14 - General Liability Insurance Coverage Lost Due To Contractor’s Failure To Timely Notify G/L Carrier.  The Court of Appeals (New York’s highest court) has ruled that a Contractor lost its general liability insurance protection because it did not give timely notice of the occurrence, even though it did give timely notice of the same occurrence to the same insurance company under its worker’s compensation policy.
   
• NEW -- Legal Alert Vol. 3 No. 15 - Owners and Contractors - New York’s Labor Law 240(1) covers Employees, not Volunteers.  New York’s employee protection scaffold law, Labor Law §240(1), makes all contractors and owners and their agents (except for owners of one and two-family dwellings who contract for but do not direct or control the work) responsible for work-site safety practices.  However, in a recent case decided by the Court of Appeals (New York’s highest court), light has now been shed on who is and is not a protected employee.

If you have any questions about the information set forth in this Legal Alert, call us at 914-428-2100.  Please understand that this alert provides general information only.  It is not intended to provide legal advice. We encourage you to contact an attorney should you desire to discuss specific situations for which you may need specific legal advice.