C.S.A. Contracting Corp. v. New York City School Construction Authority

Summary

The New York Court of Appeals held that a contractor’s claims against the New York City School Construction Authority accrued when its damages became ascertainable, rather than when payment was later denied. Because the contractor did not serve a notice of claim within three months of accrual as required by Public Authorities Law § 1744 (2), dismissal of the breach of contract action was affirmed.

Holdings

1. A contractor's claim against the School Construction Authority accrues when its damages are ascertainable, generally when the work is substantially completed or a detailed invoice is submitted.
2. The payment-denial accrual rule enacted for claims against school districts under Education Law § 3813 (1) may not be engrafted onto Public Authorities Law § 1744 (2), which was not similarly amended.
3. The complaint was properly dismissed because C.S.A. failed to plead and prove service of a statutorily compliant notice of claim within three months after its claims accrued.

Questions Presented

1. When did C.S.A. Contracting's contract claims accrue for purposes of the three-month notice-of-claim requirement in Public Authorities Law § 1744 (2)?
2. Whether the accrual rule in Education Law § 3813 (1), under which a contract claim accrues when payment is denied, should be applied to claims against the School Construction Authority despite the absence of a similar amendment to Public Authorities Law § 1744 (2).
3. Whether the complaint was properly dismissed because C.S.A. failed to plead and prove that a proper notice of claim was served within three months after accrual.

Disposition

affirmed