Sokoloff v. Harriman Estates Development Corp.

754 N.E.2d 184 (2001)

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Nature of the Case

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Facts

Ps purchased land in the Village of Sands Point, Nassau County, in contemplation of building a new home on the property. For a total of $65,000, D, a residential contractor, offered to provide Ps with certain pre-construction services, including furnishing an 'architectural and site plan/landscape design' and assisting them in obtaining a building permit. P accepted the offer by paying D the $10,000 retainer fee. The architectural plans were finalized, filed with the Village, and approved. Ps paid D a total of $ 55,000 for the architectural plans and other services and tendered the remaining balance due under the terms of their agreement. D refused to allow Ps to use these plans to build their home. Ps had rejected D's offer to build the home for an estimated cost of $1,895,000 (a sum significantly greater than D's earlier estimates), D for the first time informed Ps that the architectural plans could not be used to construct the house unless it was hired as the builder. Ps brought this action for specific performance and for replevin of the architectural plans. Ps alleged that D was acting as their agent in procuring architectural drawings and plans from Ercolino, the architect, that the plans were unique and based upon a design conceived by them, and that they had no adequate remedy at law. In their second cause of action, for replevin, Ps alleged that they owned the architectural plans 'by reason of being a third-party beneficiary' of the contract between D and Ercolino. D moved to dismiss the complaint and the Supreme Court granted the motion in part by dismissing the cause of action for replevin. D appealed and the Appellate Division reversed, dismissed the specific performance claim, and severed the action against Ercolino. This appeal resulted.