Wallkill

Facts

S & S Associates ('S & S'), a New Jersey partnership and the predecessor in interest to P, also a New Jersey partnership, bought property in Wallkill, New York with plans to build and lease a warehouse on the site. S & S hired D, a New York corporation, and its president Donald Benvie, a New York resident, to perform certain geotechnical tests on the property and to issue a formal geotechnical report. D's report advised that after some remedial work, the land would be suitable for development. In reliance on the Report, P exercised its option to purchase the vacant land for $375,000, negotiated with a prospective tenant for a lease of the to-be-constructed warehouse and then negotiated a construction contract with Walter Poppe General Contractors, Inc. ('Poppe'), a New Jersey corporation, to have the vacant land developed and a warehouse constructed thereon. Construction work had been going on for several months when, in October 1994, P learned from Poppe that certain areas of the land were unsuitable for building even after implementation of the recommendations in D's Report, due to the existence of unsuitable organic material, including wood chips, branches, and stumps. Examination indicated that the unsuitable material had been placed on top of the original ground. D claims that in several locations the original vegetation was visible underneath the unsuitable organic material which had been placed on top of it and that the organic material originally cleared from the site was moved from one spot on the site to another by MKB Contractors. D stood by the findings and recommendations in its original Report. P contends that the conclusions in D's Report were erroneous. P sued D in this Court alleging: (1) breach of duty of performance, (2) breach of express and implied warranties, (3) breach of contract and (4) breach of professional care. P did not name Poppe or MKB as defendants.

Issues

Rule of Law

Holding and Decision

Legal Analysis

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