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Current Developments in the Commercial Divisions of the
New York State Courts
Posted: July 12, 2017

Quantum Meruit Claim for Work Done Based on Promise of Contract Award in Future Upheld

On June 29, 2017, the First Department issued a decision in H. & L. Electric Inc. v. Midtown Equities LLC, 2017 NY Slip Op. 05323, allowing a quantum meruit claim based on work done based on an alleged promise of an award of a contract in the future, explaining:

The motion court also correctly denied the motion to dismiss the quasi-contractual claims. The reasonableness of plaintiff’s expectation of compensation for services rendered raises an issue that is not capable of being resolved at this stage. Contrary to defendants’ argument, plaintiff is not seeking expenses based on failed negotiations, which would not provide for recovery in quasi-contract. Rather, and as alleged in the complaint, plaintiff was promised that it would receive compensation, in the form of being awarded the contract for the project, for the consulting services rendered over the course of a year. Additionally, plaintiff alleges that it previously worked with defendants on two separate projects based on the understanding that Plaintiff would be compensated from the fees earned on the contract. Indeed, plaintiff further alleges that it was in fact awarded the contract in both those instances.

(Internal quotations and citations omitted).

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