Opinion ID: 676063
Heading Depth: 2
Heading Rank: 3

Heading: Negligence Claim Against C & S

Text: 33 Iacobelli claims that C & S was negligent during three distinct phases of the project: (1) design, (2) construction inspection, and (3) claims administration. It alleges that C & S's inaccurate geological reports and irresponsible administration and supervision of the construction caused it to incur unnecessary delays and expenses. Both Iacobelli and C & S agree that Iacobelli first became aware of the excessive water inflows in November 1983, and that this action commenced in December 1988. 34 A three-year statute of limitations governs negligence claims in New York. See N.Y.Civ.Prac.L. & R. Sec. 214 (McKinney 1990). Iacobelli claims that its negligence cause of action did not accrue until RPWD denied its differing site conditions claim, because until RPWD had finally denied its claim in 1986, its damages were speculative and contingent. C & S counters that Iacobelli was injured and knew it was injured in 1983 and that the limitations period began running then. 35 The district court held that all of Iacobelli's injuries and damages 36 first occurred during the construction of the Project when the differing condition was discovered. Although the repercussions of the alleged negligent conduct and injuries extended beyond the completion of the Project, the triggering event for purposes of the statute of limitations is clearly the time when the excessive water inflow was discovered and the differing site condition was identified. 37 On this diversity claim, we must apply New York's statute-of-limitations rules. Diffley v. Allied-Signal, Inc., 921 F.2d 421, 423 (2d Cir.1990) (state law determines what events commence an action). New York's three-year statute of limitations for negligence actions begins to run when the injury first occurs. See Snyder v. Town Insulation, Inc., 81 N.Y.2d 429, 432, 599 N.Y.S.2d 515, 615 N.E.2d 999 (Ct.App.1993). Iacobelli knew it had been harmed by the time it submitted its differing site conditions claim in May 1984. Its negligence claim would have been mooted if the county had recognized the differing site conditions claim and awarded the additional compensation that Iacobelli had requested. Nevertheless, when viewed by itself, the negligence claim accrued in May 1984 when Iacobelli knew of the differing site conditions and knew those conditions would increase its expenses. See Bushwick Hous. Sys., Inc. v. New York City Hous. Auth., 160 A.D.2d 588, 554 N.Y.S.2d 233 (mem.) (claim for misrepresentation of subsurface conditions accrued when plaintiff became aware of true subsurface conditions), appeal denied, 76 N.Y.2d 706, 560 N.Y.S.2d 988, 561 N.E.2d 888 (Ct.App.1990). Even when Iacobelli's differing site conditions claim was rejected in mid-1986, it still had another year in which to assert the negligence claim against C & S. However, because it waited until 1988 to file this action, its negligence claim is untimely. 38 Iacobelli argues that nonpayment of its differing site conditions claim was part of its injury and was the last fact necessary for it to be entitled to relief. However, none of the cases upon which Iacobelli relies involve a negligence action. See, e.g., Santos v. District Council of New York City, 619 F.2d 963 (2d Cir.1980) (suit for enforcement of arbitration award); Aetna Life & Cas. Co. v. Nelson, 67 N.Y.2d 169, 501 N.Y.S.2d 313, 492 N.E.2d 386 (Ct.App.1986) (suit by insurance company to enforce statutory lien against damages paid by state); Memphis Constr., Inc. v. Village of Moravia, 59 A.D.2d 646, 398 N.Y.S.2d 386 (1977) (mem.) (breach of contract action). Iacobelli has not supplied any cases in which nonpayment of funds was held to be an element of a negligence cause of action, and we decline to so hold here. 39 Finding no authority to support Iacobelli's claim that its negligence action against C & S did not accrue until RPWD denied its differing site conditions claim, we affirm the district court's dismissal of Iacobelli's negligence claim against C & S.