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HOME RENOVATION CONTRACTOR, WHO PERFORMED WORK WITHOUT A WRITTEN CONTRACT, DID NOT DEMONSTRATE ENTITLEMENT TO QUANTUM MERUIT RELIEF, HOMEOWNERS ENTITLED TO DAMAGES TO COMPLETE OR REPAIR CONTRACTOR’S WORK.

The Second Department determined the dismissal of the quantum meruit action by the plaintiff home renovation contractor and the award of damages on the homeowners’ counterclaim was proper. The court noted that General Business Law 771 generally prohibits recovery by a home renovation contractor in the absence of a contract, however the contractor can bring an action in quantum meruit. Here the contractor did not prove entitlement to quantum meruit relief and the homeowners proved (by expert opinion) the damages related to needed corrections of the contractors’ work:

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Although a contractor cannot enforce a contract that fails to comply with General Business Law § 771, a contractor may seek to recover based on the equitable theory of quantum meruit … . “The elements of a cause of action sounding in quantum meruit are (1) performance of services in good faith, (2) acceptance of services by the person to whom they are rendered, (3) expectation of compensation therefor, and (4) reasonable value of the services rendered” … .

Although an unenforceable writing may provide evidence of the value of services rendered in quantum meruit … , here, the record is devoid of evidence which would establish the reasonable value of the services [the contractor] may have provided to the defendants … . …

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In contrast, the defendants, on their counterclaim, offered the testimony of experts regarding the cost they expended in completing or repairing roofing, flooring, brickwork, and other aspects of the project as set forth in the architectural plans. Home Constr. Corp. v Beaury, 2017 NY Slip Op 02628, 2nd Dept 4-5-17

 

CONTRACT LAW (HOME RENOVATION CONTRACTOR, WHO PERFORMED WORK WITHOUT A WRITTEN CONTRACT, DID NOT DEMONSTRATE ENTITLEMENT TO QUANTUM MERUIT RELIEF, HOMEOWNERS ENTITLED TO DAMAGES TO COMPLETE OR REPAIR CONTRACTOR’S WORK)/GENERAL BUSINESS LAW (HOME RENOVATION CONTRACTOR, WHO PERFORMED WORK WITHOUT A WRITTEN CONTRACT, DID NOT DEMONSTRATE ENTITLEMENT TO QUANTUM MERUIT RELIEF, HOMEOWNERS ENTITLED TO DAMAGES TO COMPLETE OR REPAIR CONTRACTOR’S WORK)/CONTRACTORS (HOME RENOVATION CONTRACTOR, WHO PERFORMED WORK WITHOUT A WRITTEN CONTRACT, DID NOT DEMONSTRATE ENTITLEMENT TO QUANTUM MERUIT RELIEF, HOMEOWNERS ENTITLED TO DAMAGES TO COMPLETE OR REPAIR CONTRACTOR’S WORK)/QUANTUM MERUIT HOME RENOVATION CONTRACTOR, WHO PERFORMED WORK WITHOUT A WRITTEN CONTRACT, DID NOT DEMONSTRATE ENTITLEMENT TO QUANTUM MERUIT RELIEF, HOMEOWNERS ENTITLED TO DAMAGES TO COMPLETE OR REPAIR CONTRACTOR’S WORK)

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