Hyperlawhypertext legal database Braun Equipment Co. v. Meli Borelli Associates 220 A.D.2d 312

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Braun Equipment Co. v. Meli Borelli Associates

220 A.D.2d 312 Court N.Y. App. Div. Decision date 1995-10-19 English

Contents

Majority

p. 312
Braun Equipment Company, Inc., Plaintiff, v Meli Borelli Associates et al., Defendants, Credit Suisse, Defendant and Interpleading Plaintiff-Respondent. Greene Mechanical Corp. et al., Interpleaded Defendants-Appellants, et al., Interpleaded Defendant. (And a Third-Party Action.)
[632 NYS2d 549]

—Order, Supreme Court, New York County (Alice Schlesinger, J.), entered February 3, 1995, which granted defendant and interpleading plaintiff Credit Suisse’s motion to stay arbitration demanded by interpleaded defendant Greene Mechanical Corp., unanimously affirmed, without costs.

The prime contract at bar (the "Construction Management Agreement”) expressly precludes third-party privity. The subcontract (the "Plumbing Contract”) has language incorporating the prime contract’s terms by reference. Accordingly, the subcontractor is not in privity with the tenant (who acts as an owner for present purposes), and the subcontractor’s recourse is against the prime contractor only (see, Alvord & Swift v Muller Constr. Co., 46 NY2d 276 , 280). Concur—Sullivan, J. P., Kupferman, Williams and Tom, JJ.

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