Crystal Clear Development, LLC v. Devon Architects of New York, P.C.
Opinion of the Court
Preclusive effect, however, will only be given where the particular issue was “actually litigated, squarely addressed and
Contrary to the plaintiff’s contention, the Supreme Court properly held that the defendants were entitled to summary judgment dismissing so much of the complaint as sought to recover damages for lost profits. In an action to recover damages for breach of contract, “the nonbreaching party may recover general damages which are the natural and probable consequence of the breach” (Kenford Co. v County of Erie, 73 NY2d 312, 319 [1989]; see Yenrab, Inc. v 794 Linden Realty, LLC, 68 AD3d 755, 759 [2009]). “A claim for lost profits is generally a claim for special or extraordinary damages” (Yenrab, Inc. v 794 Linden Realty, LLC, 68 AD3d at 759). “Lost profits may be recoverable for breach of a contract if it is demonstrated with certainty that such damages have been caused by the breach, and the alleged loss is capable of proof with reasonable certainty. There also must be a showing that the particular damages were fairly within the contemplation of the parties to the contract at the time the contract was made” (Blinds to Go [US], Inc. v Times Plaza Dev., L.P., 88 AD3d 838, 839-840 [2011]; see American List Corp. v U.S. News & World Report, 75 NY2d 38, 43 [1989]; Kenford Co. v County of Erie, 67 NY2d 257, 261 [1986]; Reads Co., LLC v Katz, 72 AD3d 1054, 1056 [2010]).
Here, the defendants established their prima facie entitlement to judgment as a matter of law dismissing the plaintiffs claim for lost profits by showing that such damages were not
The Supreme Court also properly granted that branch of the defendants’ motion which was pursuant to CPLR 3211 (a) (7) to dismiss the fourth cause of action, which alleged gross negligence. The plaintiffs conclusory assertion that the defendants performed their duties “recklessly” and with “willful disre-' gard,” unsupported by any factual allegations of conduct evincing a reckless disregard for the rights of others or “smackfing]” of intentional wrongdoing, was insufficient to state a cause of action alleging gross negligence (Colnaghi, U.S.A. v Jewelers Protection Servs., 81 NY2d 821, 823-824 [1993]; see Smith-Hoy v AMC Prop. Evaluations, Inc., 52 AD3d 809, 810 [2008]; Mancuso v Rubin, 52 AD3d 580, 583 [2008]). Moreover, as the plaintiffs proposed amendment did not seek to add any factual allegation that would support such a claim, that branch of the plaintiffs cross motion which was for leave to amend the fourth cause of action was properly denied (see CPLR 3025 [b]; see generally Lucido v Mancuso, 49 AD3d 220, 225-229 [2008]).
The Supreme Court erred, however, in granting that branch of the defendants’ motion which was pursuant to CPLR 3211 (a) (7) to dismiss the second cause of action insofar as asserted against the defendant Steven Lane, alleging architectural malpractice. Business Corporation Law § 1505 (a), which applies only to professional corporations, provides that a shareholder, employee, or officer of a professional corporation shall be liable for negligent or wrongful acts committed by him or her or any person under his or her direct supervision while rendering services on behalf of the corporation (see Ecker v Zwaik & Bernstein, 240 AD2d 360 [1997]; Somer & Wand v Rotondi, 219 AD2d 340 [1996]). Here, the record indicates that Lane handled and supervised the architectural planning and represented the professional corporation, which was the defendant Devon Architects of New York, EC. (hereinafter Devon), throughout the contractual relationship. As such, Business Corporation Law § 1505 (a) renders Lane potentially liable for the malprac
Case-law data current through December 31, 2025. Source: CourtListener bulk data.