Dart Mechanical Corp. v. XL Specialty Insurance

In Dart Mechanical Corp. v. XL Specialty Insurance, 593 F.Supp.2d 464 (E.D.N.Y. 2008) the completing surety on a New York public project moved for partial summary judgment dismissing impact and delay and unjust enrichment claims by two subcontractors.  The court granted the surety’s motion.  The dispute resolution provisions of the subcontracts, and an expressly incorporated provision of the prime contract, required submission of any claims to an administrative decision with judicial review.  The subcontractors did not follow the contractual procedure, and they thereby lost the right to pursue the delay and impact claims in court.  The unjust enrichment claims were also barred because the parties’ relationships were controlled by valid contracts.  The court granted the surety partial summary judgment dismissing the specified claims.