A recent ruling by the Appellate Division of the Supreme Court of the State of New York has upheld a lower court's decision to dismiss a claim made by A.L.A.C. Contracting Corp. against the New York Department of Transportation (DOT). The court ruled that A.L.A.C. failed to meet the necessary conditions to pursue additional compensation for delays in a construction project on Route 25A in Nassau County. This decision affects contractors working with state agencies and highlights the importance of adhering to contract stipulations.
The case, A.L.A.C. Contr. Corp. v. State of N.Y.-Dept. of Transp., was filed under docket number 2021-05136 and decided on September 2, 2026. The ruling emphasizes the strict compliance required in public construction contracts, particularly concerning notice and reporting requirements.
The dispute began in June 2019 when A.L.A.C. filed a claim against the DOT, seeking damages for additional compensation. The company argued that it was owed money due to delays caused by weather conditions from Superstorm Sandy, geological issues, and alleged defects in surveys conducted by the DOT. The claim arose from a contract to reconstruct a section of Route 25A.
In response to the claim, the DOT filed a motion for summary judgment, seeking to have the case dismissed. The Court of Claims granted this motion on June 21, 2021, determining that A.L.A.C. had not complied with the contract's notice provisions. The contractor appealed the decision, leading to the recent ruling.
The Appellate Division's ruling affirmed the lower court's decision, stating, "Where a construction contract contains a condition precedent-type notice provision setting forth the consequences of a failure to strictly comply, strict compliance will be required." The judges involved in this decision included Colleen D. Duffy, Paul Wooten, Janice A. Taylor, and Phillip Hom.
The court noted that the contract specified that A.L.A.C. was required to provide written notice of any disputes related to time and that the DOT would not be liable for damages that accrued more than ten workdays prior to this notice. The ruling pointed out that A.L.A.C.'s notice was submitted approximately two months after the project was completed, which was deemed too late to meet the contract's requirements.
Additionally, the court highlighted that A.L.A.C. failed to comply with essential record-keeping requirements outlined in the contract. As a result, the court concluded that the DOT had established its entitlement to summary judgment, meaning the claim was dismissed without a trial.
This ruling has significant implications for contractors working with government agencies. It underscores the necessity for strict adherence to contract terms, especially regarding notice and reporting requirements. Contractors must ensure they understand and follow these provisions to protect their rights and claims for additional compensation.
Looking ahead, the decision may serve as a precedent for similar cases involving public construction contracts in New York. It reinforces the principle that failure to comply with contractual conditions can lead to the dismissal of claims, even if the contractor believes they have a valid reason for additional compensation.
As for the possibility of an appeal, details were not available in the court filing. However, A.L.A.C. may explore further legal options, including seeking a review by a higher court. There are no related cases pending that were mentioned in the ruling.