November 6, 2019
Jordan R. Pavlus Obtains Fourth Department Appellate Division Decision Enforcing Termination for Cause Provisions
Jordan R. Pavlus recently obtained a decision from the Fourth Department Appellate Division which re-affirmed that owners must strictly adhere to the termination for cause provisions in subcontracts.
The appeal centered on a heating and plumbing contractor who was terminated from a project without the required prior written notice and opportunity to cure. The Supreme Court denied the contractor’s motion for summary judgment, but the Appellate Division modified that decision and held that the owner failed to comply with the termination for cause provisions in the contract. As a result, the Appellate Division ruled that the owner was liable for breach of the contract.
This is an important case for contractors and owners because it clarifies that termination for cause provisions must be strictly followed.
Black River Plumbing, Heating and Air Conditioning, Inc. v. Board of Eduction Thousand Islands Central School District, et al, 175 A.D.3d 1051 (Fourth Dept. 2019).