We have all been there. The frustration and delays caused by a utility company refusing to let you relocate their interferences with your street work. There may be some hope.
We have all been there. The frustration and delays caused by a utility company refusing to let you relocate their interferences with your street work. There may be some hope.
Recently Brooklyn Union Gas (“BUG”) moved to dismiss a claim against by one of New York City’s prominent utility contractor for utility interference work. The utility contractor argued that it was entitled to compensation from BUG for the utility interference work it performed to completed its street repair project. BUG argued that it had no obligation to pay the contactor as there was no agreement between them to perform the work. The court found that BUG was obligated to pay all costs associated with protecting BUG’s facilities. The court further found that BUG assumed an obligation to pay the contractor when BUG failed to perform the work itself or arrange for it to be performed. This obligation is a condition of BUG being able to install or maintain utility equipment in the streets so BUG is on the hook for the cost of the relocation and protection work that was necessary to complete the project.
Please feel free to contact Connell Foley’s New York Construction Law Group for guidance on this or any other construction related issue you may be facing.
