The Cleveland Marble Mosaic Co. v. Bette & Cring LLC

Firm's Temporary, Irregular Dealings Do Not Rise to 'Doing Business' in New York

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MEMORANDUM DECISION AND ORDER I. INTRODUCTION Plaintiff, The Cleveland Marble Mosaic Company, commenced this action on December 31, 2020, alleging breach of contract, unjust enrichment, and fraudulent inducement against Defendant Bette & Cring, L.L.C.; unjust enrichment and foreclosure of a loan against Defendant Central Valley Central School District (hereinafter “Central Valley”); and claim on a payment bond against Defendant Travelers Casualty and Surety Company of America (hereinafter “Travelers”). Dkt. No. 1. On March 18, 2021, Defendants Bette & Cring and Travelers filed a motion to dismiss claiming that New York’s Business Corporation Law precludes Plaintiff from bringing suit because Plaintiff is a foreign corporation doing business in New York state without authority. Dkt. No. 27-1. Based on the following, Defendants’ motion to dismiss is denied. II. BACKGROUND Defendant Central Valley contracted with Defendant Bette & Cring to perform construction work on the Central Valley Central School District Phase 2 — Additions and Renovations project (hereinafter the “Central Valley Project”). Dkt. No. 1 at 18. On June 21, 2017, Defendant Travelers issued a Labor and Materials Payment Bond with Defendant Bette & Cring as the principal and Central Valley as the obligee. Id. at 19. Defendant Bette & Cring subcontracted with Plaintiff on October 4, 2017. Id. at 21. The original value of the subcontract was $479,025. Id. at 23. On November 15, 2018, Plaintiff claims that it and Defendant Bette & Cring modified the subcontract via a change order and increased the value of the subcontract to $535,535.00. Id. at 24. Based on the modified subcontract, Plaintiff performed the detailed work and submitted a bill to Defendant Bette & Cring. Id. at 28. However, Defendant Bette & Cring did not pay Plaintiff. Id. Plaintiff claims that it is still owed $174,699.34 pursuant to the subcontract and change order as well as additional costs incurred during performance. Id. at

The Cleveland Marble Mosaic Co. v. Bette & Cring LLC

Firm's Temporary, Irregular Dealings Do Not Rise to 'Doing Business' in New York

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