Rejection of demands for additional
compensation for work
performed pursuant a contract to remediate and digitize documents damaged by
flooding by New York City's Contract Dispute Resolution Board and NYC Office of Administrative Trials and
Hearings (OATH) unanimously affirmed by the Appellate Division.
Matter of Total
Envtl. Restoration Solutions, Inc. (TERS) v Contract Dispute Resolution Bd.
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2023 NY Slip Op
01878
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Decided on April 11, 2023
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Appellate Division,
First Department
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Published by New York State Law Reporting
Bureau pursuant to Judiciary Law § 431.
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This opinion is uncorrected and subject to revision before
publication in the Official Reports.
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Decided and Entered: April 11, 2023
Before: Kern, J.P., Friedman, Gesmer, Higgitt, JJ.
Index No. 154920/21 Appeal No. 17 Case No. 2021-04286
[*1]In the Matter of Total Environmental Restoration Solutions, Inc.
(TERS), Petitioner-Appellant,
v
Contract Dispute Resolution Board, et al., Respondents-Respondents.
Kostelanetz & Fink, LLP, New York
(Claude Millman of counsel), for appellant.
Frank Ng, New York, for
Contract Dispute Resolution Board and NYC Office of Administrative Trials and
Hearings (OATH), respondent.
Sylvia O. Hinds-Radix, Corporation Counsel, New York
(Philip W. Young of counsel), for The City of New York, The Office of the
Comptroller and the New York City Police Department (NYPD), respondents.
Judgment (denominated an order), Supreme Court, New York County (Eileen A.
Rakower, J.), entered on or about October 13, 2021, denying the petition to
annul a determination of respondent Contract Dispute Resolution Board (CDRB),
dated February 4, 2021, which denied petitioner's claims for additional
compensation from respondent New York Police Department (NYPD) for work
performed pursuant a contract to remediate and digitize documents damaged by
flooding caused by Hurricane Sandy, and dismissing the proceeding brought
pursuant to CPLR article 78, unanimously affirmed, without costs.
CDRB's determination was not arbitrary or capricious or affected by an error
of law (see CPLR 7803[3]; 9 RCNY 4-09[g][6]). In calculating the
remediation costs, CDRB rationally concluded that the language of the contract
did not support petitioner's contention that the word "page"
unambiguously referred to one side of a sheet of paper. Unlike the section
governing digitization services, which clarified that "[d]ouble-sided
documents count as two pages," there was no equivalent provision in the
section governing remediation. The omission of similar language with respect to
remediation services "must be deemed an intentional choice of the
parties" (Ambac Assur. Corp. v EMC Mtge. LLC, 121 AD3d 514,
518 [1st Dept 2014]).
Indeed, remediation treats the whole sheet of paper regardless of whether it is
printed on one or both sides, whereas digitization depends on the number of
images scanned.
The contract's merger clause precludes petitioner's reliance on
communications between the parties and other extrinsic sources to support its
proposed definition (see Schron v Troutman Sanders LLP, 20 NY3d 430, 436
[2013]). Further, extrinsic evidence may not be considered where, as here, the
contract is unambiguous (Matter of Wells Fargo Bank, N.A., 198 AD3d 156, 163
[1st Dept 2021], lv
dismissed 38 NY3d 998 [2022]). In any event, even if there were an
ambiguity, it is to be construed against petitioner, the drafter of the
agreement (see 327 Realty, LLC v Nextel of N.Y., Inc., 150 AD3d 581,
582 [1st Dept 2017])
In determining the digitization costs, CDRB rationally relied on NYPD's
calculation of the number of images that had been digitized, which was based on
the number of files that NYPD received on hard drives from petitioner. This
method was consistent with the contractual term that petitioner was to be
compensated "for the actual number of . . . images digitized."
By contrast, petitioner's calculation method using image file size did not
comport with the terms of the agreement.
THIS CONSTITUTES THE DECISION AND ORDER OF THE SUPREME COURT, APPELLATE
DIVISION, FIRST DEPARTMENT.
ENTERED: April 11, 2023