Summary Judgment Denied Where Defendant Failed To Support Argument That Plaintiff Was Obliged To Exhaust Administrative Remedies

Posted: September 22, 2025 / Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner / Categories Breach of Contract, Contract Interpretation, Summary Judgment

Summary Judgment Denied Where Defendant Failed To Support Argument That Plaintiff Was Obliged To Exhaust Administrative Remedies

On July 23, 2025, Justice Joel M. Cohen denied a motion for summary judgment premised on defendant’s argument that plaintiff had failed to exhaust its administrative remedies. The case is 249 E. 62 St., LLC vs. Rafael Vinoly Architects, P.C., Index No. 655469/2020.

Defendant Rafael Vinoly Architects, P.C. (“RVA”), an architectural firm, prepared plans under contract with plaintiff, and obtained approval from the Department of Buildings (“DOB”) under an expedited procedure that called for limited review. After the DOB approved the plans, plaintiff terminated its contract with RVA and sued for breach of contract, professional malpractice/negligence, and negligent misrepresentation, alleging that defendant’s plans were not in compliance with a relevant zoning resolution. Slip op., p. 2.

Justice Cohen denied defendant’s motion for summary judgment:

Defendant’s sole argument for dismissal is that Plaintiff failed to exhaust its administrative remedies with the DOB prior to bringing suit. Defendant, however, points to no contractual or other obligation for Plaintiff to do so. Indeed, given that DOB never withdrew its approval of RVA’s design—which was never implemented—it is unclear what Defendant expects Plaintiff to “exhaust” before DOB.

Slip Op., p. 3. Because “the principle of administrative exhaustion is inapposite here . . . Defendant has not met its burden to establish a prima facie case for judgment in its favor as a matter of law.” Slip op., p. 4.

Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning breach of contract, zoning issues or summary judgment.