Steve's Star Serv. v. County of Rockland

• Decision Date: 26 December 2000
• Citation: 718 N.Y.S.2d 72,278 A.D.2d 498
• Parties: (A.D. 2 Dept. 2000) In the Matter of Steve's Star Service, Inc., respondent, et al., petitioners, v. County of Rockland, et al., appellants. 1999-06072 : SECOND JUDICIAL DEPARTMENT
• Court: New York Supreme Court — Appellate Division

Page 72

718 N.Y.S.2d 72 (A.D. 2 Dept. 2000)

In the Matter of Steve's Star Service, Inc., respondent, et al., petitioners, v. County of Rockland, et al., appellants.

1999-06072

SUPREME COURT OF THE STATE OF NEW YORK APPELLATE DIVISION: SECOND JUDICIAL DEPARTMENT

December 26, 2000

Patterson Belknap Webb & Tyler, LLP, New York, N.Y. (John D. Winter of counsel), for appellants.

DECISION & ORDER

SONDRA MILLER, J.P., WILLIAM D. FRIEDMANN, GABRIEL M. KRAUSMAN, DANIEL F. LUCIANO, JJ.

In a proceeding pursuant to CPLR article 78, in effect, to compel the appellants, inter alia, to deliver a check in the sum of $259,745.65 to the petitioner Steve's Star Service, Inc., the appeal is from a judgment of the Supreme Court, Rockland County (Meehan, J.), dated June 24, 1999, which granted the petition to the extent of directing the appellants to deliver the subject check.

ORDERED that the judgment is reversed, on the law, with costs, and to the extent that the proceeding seeks to compel the appellants to deliver a check in the sum of $259,745.65 to the petitioner Steve's Star Service, Inc., it is convened into an action to recover damages for breach of contract (see, CPLR 103[c]), with the petition deemed the complaint, and the matter is remitted to the Supreme Court, Rockland County for further proceedings consistent herewith.

On August 25, 1997, the County of Rockland awarded the petitioner Steve's Star Service, Inc. (hereinafter Steve's Star) a three-year contract to transport handicapped children to school. Shortly thereafter, a dispute arose as to whether Steve's Star was properly performing its services, and the parties subsequently began to negotiate an agreement for early termination of the contract In June 1999, Steve's Star submitted an invoice to the appellants seeking payment of the sum of $259,745.65 for services provided in May 1999 and advised the appellants that if payment was not made by June 18, 1999, it would not have funds to pay its drivers. When the appellants refused to pay the May invoice by June 18, 1999, Steve's Star halted its operations on behalf of the appellants. Later that day, the appellants notified Steve's Star that it was terminating the contract, effective immediately. Steve's Star then commenced this proceeding pursuant to CPLR article 78 seeking to compel the appellants, inter alia, to deliver a check for payment of its May invoice. The Supreme Court granted the petition to the extent of directing the appellants to deliver the subject check. We reverse.

It is well settled that where damages allegedly have been sustained due to a breach of contract by a public official or governmental body, the claim "must be resolved through the application of traditional rules of contract law" (see, Abiele Contr. v. New York City School Constr. Auth., 91 N.Y.2d 1, 8; see also, Matter of Goodstein Constr....