HUGHES CO. v. SAPPHIRE REALTY CO.


11 N.Y.2d 17 (1962)

H. M. Hughes Co., Inc., Respondent, v. Sapphire Realty Co., et al., Appellants.

Court of Appeals of the State of New York.

Decided February 22, 1962.


Attorney(s) appearing for the Case

Ferdinand Pecora and Lawrence C. Gibbs for appellants.

Abraham Dollinger and Jacob W. Friedman for respondent.

Chief Judge DESMOND and Judges FULD, BURKE and FOSTER concur in Per Curiam opinion; Judges DYE, FROESSEL and VAN VOORHIS dissent and vote to reverse upon the ground that triable issues of fact were presented by the pleadings and affidavits as to the conclusiveness of the architects' final certificate of damage on the issue of performance, and value of the work, as well as to the propriety, reasonableness and necessity of the expenditures and the extent of rebates received, all solely within the knowledge of respondent, who by this cost plus contract had expressly placed itself in a "trust and confidence" relationship. Accordingly, the motion for partial summary judgment should be denied.


Per Curiam.

The contract provides for "final payment" upon issuance by the architects of a "final certificate". This being so, the certificate, when issued, is conclusive and decisive on the rights of the parties, obligating the defendant, Sapphire Realty Co., to pay the amount fixed by the architects unless it can show that the certificate was obtained by fraud or mistake. (See Glacius v. Black, 50 N.Y. 145...

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