In a January 13, 2012 decision by Justice Demarest, the court granted defendant’s motion for summary judgment dismissing the complaint – even though discovery was not complete. The dispute arose from a private bus transportation contract. In a prior contract, the parties agreed that the companies already providing transportation services would be given a “preference” in subsequent contract negotiations. Plaintiff alleged that defendant ignored that preference and awarded the new contract to another bus company. Plaintiff also alleged that it relied on defendant’s false and misleading statements in acquiring new equipment.
The court dismissed plaintiff’s cause of action based on the contract’s preference language because plaintiff’s bid was between 26% and 112% higher than the lowest bidder, negating the preference language because plaintiff’s reading of that language would have required defendant to award plaintiff the contract no matter the amount of plaintiff’s bid. The court also dismissed plaintiff’s implied covenant of good faith and fair dealing cause of action, finding that cause of action could not be used to resurrect a defective breach of contract claim. Also, the court found that there was no basis for plaintiff’s negligent misrepresentation and fraudulent inducement claims because plaintiff failed to, and couldn’t, prove any of the allegations of those claims.
Outstanding Transp., Inc. v. Interagency Council of Mental Retardation & Dev. Disabilities, Inc., Sup Ct, Kings County, January 13, 2012, Demarest, J, Index No. 8338/11.