Wrecking Corp. of America v. Memorial Hospital for Cancer & Allied Diseases
Opinion of the Court
Order, Supreme Court, New York County, entered May 24, 1977, which, inter alia, denied the motion by defendant Memorial Hospital for Cancer and Allied Diseases (Memorial) for partial summary judgment with respect to the first, second and part of the fifth cause of action in the complaint, unanimously reversed, on the law, with $60 costs and disbursements of this appeal to appellant, and the motion by Memorial granted, dismissing the first and second causes of action and so much of the fifth cause of action as sought recovery predicated upon the alleged failure of defendant to disclose information concerning the subsurface areas to be excavated by plaintiff. Plaintiff subcontractor successfully bid to perform excavation work on a new 20-story hospital to be owned by Memorial located at 1275 York Avenue, New York, New York. Diesel, general contractor and construction manager on the project, acted as Memorial’s disclosed agent. Plaintiffs bid followed its review of relevant documents and design drawings supplied by Diesel. In this action, commenced after substantial completion of plaintiffs performance, the first and second causes of action in the complaint allege that subsurface conditions encountered differed materially from those represented in design drawings furnished by Diesel and further that Memorial withheld relevant information and failed to determine subsurface conditions in a reasonable manner. Plaintiff seeks to recover the increased costs which resulted and for delay in completing its contract. The agreement between the parties clearly imposes upon plaintiff the responsibility and risk of subsurface conditions. Addendum A to the contract (par 14, p 2), provides: "No representation is made by the General Contractor, Owner, Architect or Engineer in any contract document regarding the existing sub-surface conditions.” Section No. 3 (par 7, cl [f]) of the general conditions (excavation and foundation work) is even more explicit: "The Owner, Architect and Consulting Engineers make no representations regarding the character and extent of the soil data or other surface conditions to be encountered during the work and no guarantee as to their accuracy or interpretation is made or intended.” Despite these provisions, Special Term perceived the existence of triable issues of fact as to whether defendants negligently or willfully withheld information which, if disclosed, would have resulted in a higher bid. We disagree. Plaintiff clearly assumed full and complete responsibility for all excavation and construction costs relating to the foundation. There is no merit to plaintiffs claim that it should not be bound by its agreement to assume total responsibility for subsurface conditions, because material information was withheld which, if furnished, would have affected plaintiffs bid. Although plaintiff asserts that it was not supplied with as-built drawings of a previously demolished building on the site, there is no showing that such drawings were actually in existence, let alone that they were in Memorial’s possession or control and withheld by it. It appears that al
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