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Baby Togs, Inc. v. IMI Systems, Inc.

Appellate Division of the Supreme Court of New York, First Department
Jun 9, 1994
205 A.D.2d 335 (N.Y. App. Div. 1994)

Opinion

June 9, 1994

Appeal from the Supreme Court, New York County (Robert D. Lippmann, J.).


The action involved a contract entered into by the parties in October 1987 under which defendant was to design and install a computerized management system in plaintiff's warehouse (WMS) and plaintiff was to have the final right of acceptance after testing the WMS. The agreement contemplated a May 1988 completion date and also contained a 10-day notice to cure any default after which the contract could be terminated. Following execution the contract was modified on several occasions to include development of, and payment for, software for the WMS, the last amendment containing a date as late as January 20, 1989 for development of the software. The WMS was finally tested in plaintiff's warehouse in June 1989, with disastrous results that defendant claims were in part due to plaintiff's derelictions. However, defendant does not deny that the WMS and software were still not ready for installation as of September 1991, and we hold that it was reasonable for plaintiff to wait no longer. Plaintiff has paid in excess of $1 million and has received nothing in return under a contract executed in October 1987. The December 5, 1990 letter of termination, extended by the acts of the parties to September 1991, was sufficient compliance with the original contract terms governing termination, and afforded defendant more than sufficient time to cure any defects. Defendant failed to cure the defects and was in continued default of the agreement. Accordingly, we grant plaintiff summary judgment as to liability on the first cause of action for breach of contract. However, plaintiff's remaining causes of action should be dismissed because they all relate to the breach of contract cause of action and thus may not be separately maintained (see, Metropolitan Transp. Auth. v. Triumph Adv. Prods., 116 A.D.2d 526).

Concur — Murphy, P.J., Rosenberger, Kupferman, Ross and Tom, JJ.


Summaries of

Baby Togs, Inc. v. IMI Systems, Inc.

Appellate Division of the Supreme Court of New York, First Department
Jun 9, 1994
205 A.D.2d 335 (N.Y. App. Div. 1994)
Case details for

Baby Togs, Inc. v. IMI Systems, Inc.

Case Details

Full title:BABY TOGS, INC., Respondent-Appellant, v. IMI SYSTEMS, INC.…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Jun 9, 1994

Citations

205 A.D.2d 335 (N.Y. App. Div. 1994)
613 N.Y.S.2d 168

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