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.