In response to a notice of violation and stop-work order it received from the Department of Buildings, Pavarini McGovern LLC entered into an agreement with Herbert Moskowitz, an adjacent owner, to pay him $400 for each day certain "protection" remained in place on his property past May 24, 2008.
Because Pavarini failed to remove that protection, and stopped paying the $400 fee, Moskowitz sued and the New York County Supreme Court awarded him $62,000.
When Pavarini challenged that outcome on appeal, the Appellate Division, First Department, didn't view the fee as an "unenforceable penalty" nor was it convinced that the charge was "plainly or grossly disproportionate" to the benefit Pavarini received in connection with its multi-million dollar construction project.
Would a pregnant pause now be appropriate?
To view a copy of the Appellate Division's decision, please use this link: Moskowitz v. Pavarini McGovern LLC