The trial court should not have awarded damages for additional labor costs due to defendants' delays in the construction project. In general, it is impermissible to calculate delay damages for additional labor costs based on a comparison of the contractor's precontract estimate of what its labor cost would be and what it claimed its labor cost actually turned out to be (see Manshul Constr. Corp. v Dormitory Auth. of State of N.Y.,
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FIVE STAR ELEC. CORP. v. A.J. PEGNO CONSTR. CO., INC./TULLY CONSTR. CO., INC.
Index No. 400897/11. Appeal No. 15501-15502. Case Nos. 2021-02404, 2021-02405, 2021-02740.
205 A.D.3d 572 (2022)
168 N.Y.S.3d 465
2022 NY Slip Op 03345
Five Star Electric Corp., Respondent, v. A.J. Pegno Construction Co., Inc./Tully Construction Co., Inc., et al., Appellants.
Appellate Division of the Supreme Court of New York, First Department.https://leagle.com/images/logo.png
Decided May 24, 2022.
Decided May 24, 2022.
Attorney(s) appearing for the Case
Hogan Lovells US LLP, New York (Matthew J. Higgins of counsel), and Hogan Lovells US LLP, Washington, D.C. (Jessica L. Ellsworth, of the bar of the District of Columbia, admitted pro hac vice, of counsel), for appellants.
Duane Morris LLP, New York (Mark A. Canizio of counsel), for respondent.
Concur—Webber, J.P., Moulton, Kennedy, Mendez, Pitt, JJ.
Appellate Division of the Supreme Court of New York, First Department.
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