When the Poughkeepsie Board of Education hired the Palombo Group, the parties’ construction contract provided that the latter would be paid $960,700 for "basic services," as well as amounts to be determined for "additional services."
After Palombo submitted three invoices for "additional services,” the Board refused to pay the last two. And when a suit was filed, the Dutchess County Supreme Court awarded relief ($38,847.50) in the contractor’s favor.
Since the terms of the parties' agreement were “unambiguous,” and the Board had the legal authority to approve the payments, the Appellate Division, Second Department, affirmed the outcome.
How instructive was that?
To view a copy of the Appellate Division’s decision, please use this link: Palombo Group v Poughkeepsie City Sch. Dist.