Enclos Corp. v. Dormitory Authority of the State of New York

U.S. DISTRICT COURT
NORTHERN DISTRICT OF NEW YORK
Contracts

New York Law Journal

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Judge Gary Sharpe

Under its 2007 contract with the Dormitory Authority (DASNY) Enclos agreed to perform work at the John Jay College of Criminal Justice for $40.55 million. The contract held a "no-damages-for-delay" provision. Despite implicitly acknowledging that clause's effect, Enclos' lawsuit asserting contract breach and quasi-contract causes of action claimed its performance was disrupted and delayed due to DASNY's redesign of the project, change of the construction schedule, and failure to mitigate delays. Seeking dismissal DASNY argued Enclos' contractual claims barred by the "no-damages-for-delay" clause, and that Enclos' quasi-contract claims failed as a matter of law because there was a governing contract between the parties. District court denied DASNY's motion for dismissal as premature. Although the subject clause could preclude Enclos' contractual claims it was equally possible that a general exception to that clause existed, entitling Enclos to recover damages. Further, despite skepticism over the viability of Enclos' quasi-contract claims, the court deemed it appropriate to allow Enclos time to show how the contract does not govern DASNY's purported misconduct.

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