Commercial Division Blog
Property Owner Not Liable for General Contractor's Breach of Contract
On April 8, 2015, the Second Department issued a decision in Sears Ready Mix, Ltd. v. Lighthouse Marina, Inc., 2015 NY Slip Op. 02955, affirming the dismissal of a claim against a property owner for a contractor's breach of its contract with a subcontractor, explaining:
A property owner who contracts with a general contractor does not become liable to a subcontractor on a quasi contract theory unless it expressly consents to pay for the subcontractor's performance. The mere fact that the owners consented to the improvements and received some benefit from the subcontractor's activities is insufficient to recover on such a theory; the subcontractor must also show that it was working for the owners when it performed its work resulting in unjust enrichment.
(Internal quotations and citations omitted).