Ordered that the order is modified, on the law, by deleting the provision thereof denying the cross application and substituting therefor a provision granting the cross application; as so modified, the order is affirmed insofar as appealed from, without costs or disbursements; and it is further,
Ordered that the plaintiffs’ time to serve a second amended complaint is extended until 30 days after service upon them of a copy of this decision and order.
The plaintiffs are former employees of the defendant Olympia Mechanical Piping & Heating Corp. (hereinafter Olympia), a New York corporation engaged in the construction business. They commenced this action to recover unpaid wages and supplemental benefits which Olympia allegedly owes them for work performed on various public works projects. They alleged that Olympia had paid them less than the prevailing rate of wages to which they were entitled pursuant to Labor Law § 220. Insofar as is relevant to the instant appeal, the plaintiffs asserted causes of action against Olympia sounding in breach of contract, quantum meruit, and unjust enrichment. Olympia successfully moved pursuant to CPLR 3211 (a) (7) to dismiss the complaint insofar as asserted against it for failure to state a cause of action. The Supreme Court also denied the plaintiffs’ request for leave to serve a second amended complaint. On appeal by the plaintiffs, we modify the order by granting the plaintiffs’ cross application for leave to serve a second amended complaint.
It is well settled that a motion to dismiss a complaint for failure to state a cause of action pursuant to CPLR 3211 (a) (7)
The workers protected by Labor Law § 220 are third-party beneficiaries of the contract between their employer and the municipality, and they possess a cause of action against their employer to recover damages for breach of contract when the contract between the employer and the municipality expressly provides for the wages to be paid to such workers (see Fata v Healy Co.,
In light of the lack of prejudice to Olympia and the possible merit to the plaintiffs’ claims, however, we conclude that the Supreme Court improvidently exercised its discretion in denying the plaintiffs’ cross application for leave to serve a second amended complaint (see CPLR 3025 [b]; Edenwald Contr. Co. v City of New York,
