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HOUSTON CASUALTY CO. v. CAVAN CORP. OF NY, INC.

651981/14. 4719. 595609/14. 4718.

158 A.D.3d 536 (2018)

71 N.Y.S.3d 455

2018 NY Slip Op 01153

HOUSTON CASUALTY COMPANY, Appellant, v. CAVAN CORPORATION OF NY, INC., et al., Respondents. CAVAN CORPORATION OF NY, INC., Third-Party Plaintiff-Appellant-Respondent, v. THE DUCEY AGENCY, INC., Third-Party Defendant-Appellant-Respondent.

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

Decided February 20, 2018.

In July 2012, Cavan entered into a "Construction Management Agreement" (CMA) with the other defendants in this action (the owners), under which Cavan agreed to function as "construction manager" for a building project on Lafayette Street in Manhattan. The CMA provides that Cavan is to receive compensation in the form of a fixed fee of $600,000, in addition to a payment of $1,700,000 as reimbursement "for all reasonable and customary staffing and overhead costs incurred by...

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