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Fiberglass Fabricators, Inc. v. C.O. Falter Constr. Corp.

Supreme Court, Appellate Division, Fourth Department, New York.
May 9, 2014
117 A.D.3d 1540 (N.Y. App. Div. 2014)

Opinion

2014-05-9

FIBERGLASS FABRICATORS, INC., Plaintiff–Appellant, v. C.O. FALTER CONSTRUCTION CORP., Defendant–Respondent, et al., Defendants. (Appeal No. 2.).

Byrne, Costello & Pickard, P.C., Syracuse (Zea M. Wright of Counsel), for Plaintiff–Appellant. Hancock Estabrook, LLP, Syracuse (Janet D. Callahan of Counsel), for Defendant–Respondent.



Byrne, Costello & Pickard, P.C., Syracuse (Zea M. Wright of Counsel), for Plaintiff–Appellant. Hancock Estabrook, LLP, Syracuse (Janet D. Callahan of Counsel), for Defendant–Respondent.
PRESENT: SCUDDER, P.J., PERADOTTO, CARNI, LINDLEY AND VALENTINO, JJ.

MEMORANDUM:

C.O. Falter Construction Corp. (defendant), the general contractor on a public improvement project, hired plaintiff to supply fiberglass reinforced plastic (FRP) products for the project. Defendant refused to pay plaintiff's final invoice on the ground that a number of products that plaintiff was required to provide under the parties' agreement were missing, defective, or otherwise failed to conform to the project's plans and specifications. Pursuant to the terms of the agreement, defendant thereafter demanded adequate assurance of performance from plaintiff in the form of a surety bond, and plaintiff was unable or unwilling to deliver such bond. Defendant then terminated the agreement and obtained from other suppliers the FRP products necessary to complete the project.

Following the termination of the agreement, plaintiff filed a mechanic's lien in the amount of its final invoice, and defendant secured a bond to discharge the lien. Plaintiff thereafter commenced this action alleging, inter alia, breach of contract, and seeking foreclosure of its lien. Defendant asserted counterclaims seeking, inter alia, a declaration that the lien is void based upon plaintiff's willful exaggeration of the amount for which it claimed a lien.

In appeal No. 1, plaintiff appeals from an amended order entered following a bench trial that dismissed its complaint, discharged and declared null and void the mechanic's lien, awarded damages to defendant pursuant to Lien Law § 39–a, discharged the discharge bond and awarded judgment to defendant on its counterclaim for the cost of obtaining such bond, and directed an inquest to determine the amount of attorney's fees defendant was entitled to recover from plaintiff pursuant to section 39–a. In appeal No. 2, plaintiff appeals from a judgment awarding defendant damages as provided in the amended order and, in appeal No. 3, plaintiff appeals from a judgment awarding defendant attorney's fees. We note at the outset that, inasmuch as the amended order in appeal No. 1 is subsumed in the judgment in appeal No. 2, we dismiss plaintiff's appeal from the amended order in appeal No. 1 ( see Hughes v. Nussbaumer, Clarke & Velzy, 140 A.D.2d 988, 529 N.Y.S.2d 658;Chase Manhattan Bank, N.A. v. Roberts & Roberts, 63 A.D.2d 566, 567, 404 N.Y.S.2d 608;see alsoCPLR 5501[a][1] ).

Contrary to plaintiff's contention in appeal No. 2, we conclude that Supreme Court applied the proper standard in finding that plaintiff had willfully exaggerated the amount of the mechanic's lien, i.e., whether plaintiff intentionally and deliberately exaggerated the amount of the lien ( see Pelc v. Berg, 68 A.D.3d 1672, 1673, 893 N.Y.S.2d 404;J. Sackaris & Sons, Inc. v. Terra Firma Constr. & Gen. Contr., LLC, 14 A.D.3d 538, 541, 788 N.Y.S.2d 424,lv. denied4 N.Y.3d 878, 798 N.Y.S.2d 720, 831 N.E.2d 966). The court did not base its finding of willful exaggeration solely upon the discrepancy between the amount of the lien and the amount actually due to plaintiff ( see generally Capogna v. Guella, 41 A.D.3d 522, 523, 836 N.Y.S.2d 441). Contrary to plaintiff's further contention in appeal No. 2, we conclude that defendant met its burden of demonstrating that such discrepancy was the result of plaintiff's intentional and deliberate exaggeration rather than honest mistakes or disagreements concerning the terms of the agreement ( see Pelc, 68 A.D.3d at 1673, 893 N.Y.S.2d 404;Fidelity N.Y. v. Kensington–Johnson Corp., 234 A.D.2d 263, 263, 651 N.Y.S.2d 86).

We reject plaintiff's contention in appeal No. 3 that the amount of attorney's fees awarded to defendant is excessive. The court considered the appropriate factors and properly concluded that the fees sought by defendant were “for services in securing the discharge of the lien” (Lien Law § 39–a; see generally Diaz v. Audi of Am., Inc., 57 A.D.3d 828, 830, 873 N.Y.S.2d 308). The court was in the best position to determine the amount of reasonable attorney's fees for such services “and, absent an abuse of discretion, the trial court's determination will not be disturbed” ( Pelc, 68 A.D.3d at 1673, 893 N.Y.S.2d 404 [internal quotation marks omitted] ). We perceive no abuse of discretion in this case.

It is hereby ORDERED that the judgment so appealed from is unanimously affirmed without costs.


Summaries of

Fiberglass Fabricators, Inc. v. C.O. Falter Constr. Corp.

Supreme Court, Appellate Division, Fourth Department, New York.
May 9, 2014
117 A.D.3d 1540 (N.Y. App. Div. 2014)
Case details for

Fiberglass Fabricators, Inc. v. C.O. Falter Constr. Corp.

Case Details

Full title:FIBERGLASS FABRICATORS, INC., Plaintiff–Appellant, v. C.O. FALTER…

Court:Supreme Court, Appellate Division, Fourth Department, New York.

Date published: May 9, 2014

Citations

117 A.D.3d 1540 (N.Y. App. Div. 2014)
117 A.D.3d 1540
2014 N.Y. Slip Op. 3377

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