Concrete Works Corp. v. Volmar Construction Inc
1:22-cv-04862
| S.D.N.Y. | Oct 31, 2024Background
- Concrete Works Corp. sued Volmar Construction Inc. for damages arising out of two construction contracts: the Early Demolition Contract and the Structural Repair Contract, related to a federal project.
- After a five-day jury trial, the jury found in favor of Concrete Works on certain breach-of-contract claims, awarding $257,019.83 on Count 2 and $82,018.50 on Count 6.
- Concrete Works filed a motion to recover pre- and post-judgment interest on the damages awarded by the jury on these two counts.
- The contracts at issue contained provisions expressly setting the rate for interest on unpaid amounts at zero percent.
- The Defendants argued that this contractual term barred pre-judgment interest, while Concrete Works argued otherwise, pointing to statutory interest provisions.
- The Court considered federal and state law, as well as the parties' specific contract language, to resolve the dispute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Entitlement to Pre-judgment Interest | Statutory right to interest applies | Contract sets pre-judgment interest at 0% | Contract terms control; rate is 0%; no pre-judgment int. |
| Relevance of N.Y. G.B.L. §§ 756-a & 756-b | Statutes override contract restrictions | Statutes do not apply to public works projects | Statutes are inapplicable to public works contracts |
| Entitlement to Post-judgment Interest | Entitled under federal law (28 U.S.C. § 1961) | No opposition | Post-judgment interest awarded at statutory rate |
| Accrual Date for Pre-judgment Interest | Should accrue from specific contract breach date | Date is irrelevant since rate is 0% | Declined to decide; accrual date immaterial |
Key Cases Cited
- Marfia v. T.C. Ziraat Bankasi, 147 F.3d 83 (2d Cir. 1998) (court discretion in determining calculation date for prejudgment interest under NY law)
- J. D’Addario Inc. v. Embassy Indus., Inc., 20 N.Y.3d 113 (N.Y. 2012) (contract language controls rights to prejudgment interest under New York law)
- Schipani v. McLeod, 541 F.3d 158 (2d Cir. 2008) (postjudgment interest is mandatory under federal law)