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Bombardier Transp. v. Telephonics Corp.

Appellate Division of the Supreme Court of New York, First Department
Jan 6, 2005
14 A.D.3d 358 (N.Y. App. Div. 2005)

Summary

stating that a "right to payment [does] not accrue, under the contract, until ... invoiced"

Summary of this case from Trendsetter HR LLC v. Zurich Am. Ins. Co. (In re Trendsetter HR LLC)

Opinion

5058N

January 6, 2005.

Judgment, Supreme Court, New York County (James A. Yates, J.), entered June 28, 2004, granting respondent's cross motion for summary judgment dismissing the petition for a permanent stay of arbitration, unanimously affirmed, without costs.

Before: Tom, J.P., Andrias, Saxe, Friedman and Gonzalez, JJ.


On the record before us, none of respondent's claims is time-barred. The first claim, for unpaid work, accrued not when the work was completed, but when petitioner notified respondent that it would not issue a certificate of completion, which was a condition precedent to payment ( see Kassner Co. v. City of New York, 46 NY2d 544, 550). Given the facts as set forth in the unrebutted affidavit of respondent's vice-president, those claims accrued only when petitioner refused a demand for payment.

With regard to the claim for extra work to make the system Y2K compliant, the right to payment did not accrue, under the contract, until the work was invoiced. It is uncontroverted that petitioner directed respondent to hold off invoicing until it had a chance to negotiate with Southeastern Pennsylvania Transportation Authority concerning direct payment, and that invoice was issued as soon as respondent realized those negotiations had terminated.

The contract and respondent's uncontroverted affidavit make clear that the third claim, for spare parts, did not accrue until the obligation to supply those parts expired. Only then, which was well within four years of the filing of this claim, was petitioner required to return or pay for unused spare parts.


Summaries of

Bombardier Transp. v. Telephonics Corp.

Appellate Division of the Supreme Court of New York, First Department
Jan 6, 2005
14 A.D.3d 358 (N.Y. App. Div. 2005)

stating that a "right to payment [does] not accrue, under the contract, until ... invoiced"

Summary of this case from Trendsetter HR LLC v. Zurich Am. Ins. Co. (In re Trendsetter HR LLC)
Case details for

Bombardier Transp. v. Telephonics Corp.

Case Details

Full title:In the Matter of BOMBARDIER TRANSPORATATION (HOLDINGS) USA, INC., as…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Jan 6, 2005

Citations

14 A.D.3d 358 (N.Y. App. Div. 2005)
788 N.Y.S.2d 80

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Bombardier Transp. (Holdings) USA, Inc. v. Telephonics Corp. ("Bombardier") , 14 A.D.3d 358, 788 N.Y.S.2d 80,…