Confers authority on the state comptroller to verify and pay the claim of A. Servidone, Inc./B. Anthony Construction Corp., J.V. against the state of New York

Summary of provisions

Section one states that the Legislature finds that A. Servidone, Inc./B. Anthony Construction Corp., J.V. was engaged and authorized by the State, acting by and through the New York Department of Transportation, on or about October 6, 2011, to perform a construction project known as the reconstruction and bridge replacement on Route 17 at Exit 122 in the Town of Wallkill, Orange County, New York (NYDOT Contract No. 0261655). The contractor proceeded to perform the work so contracted in good faith and without wrongful intent and due to the decision by the State Supreme Court has been unable to collect those monies owed by virtue to the work performed prior to the decision by the Court. Under present law, a court decision invalidating a contract means that the contractor has no legal standing to sue to recover any expenses.

Section two states that the New York State Comptroller is authorized to make payments in the amounts submitted by A. Servidone, Inc. B. Anthony Construction Corp., J.V. and approved by the Department of Transportation for any amounts payable under this bill with respect to the construction project. Payment of these amounts shall be made from federal and/or state capital projects funds appropriations available to the NYS DOT and shall include such reasonable and verifiable amounts to pay for the actual and necessary costs in performing construction work.

Section three states that this act shall take effect immediately.

Justification

On or about October 6, 2001 the State of New York, through the New York State Department of Transportation, entered into a contract with A. Servidone, Inc./B. Anthony Construction Corp., J.V. to perform a

construction project known as the reconstruction and bridge replacement on Route 17 at Exit 122 in the Town of Wallkill. The contractor had completed close to 10% of the project when the State Supreme Court ruled the contract null and void due to no fault of the contractor. During the construction phase of the contract, under good faith and believing it had a valid contract with the State, the contractor purchased materials, completed various work on the project and entered into contracts with various subcontractors. When the Supreme Court made its ruling it left A. Servidone, Inc./B. Anthony Construction Corp., J.V. without any means to collect payment from the State for work performed. Under present law. a court decision invalidating a contract means that the contractor has no legal standing to sue to recover any expenses. This bill simply allows a contractor to collect expenses incurred on a construction job that they rightfully started under a contract with the State. The money owed to the contractor would not be a new allocation and would, come from the funds that have been already allocated by the State for the project. This bill simply allows for the fair and equitable resolution of this issue and makes sure that a New York State business, which relied on the State, is fairly compensated for expenses incurred.

Prior legislative history

Although this is a new bill, there has been legislation passed in prior years which protected contractor's claims when the contract that they have relied on in good faith has been invalidated by the courts.

Fiscal implication

None. All money expended would come from current allocations by the State for the Exit 22 construction project.

Effective date

This act shall take effect immediately.