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NY Wheel Owner LLC v. Mammoet Holding B.V.

Design Build Agreement Does Not Insulate Defendant From Liability

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The following e-filed documents, listed by NYSCEF document number (Motion 001) 6, 7, 8, 9, 10, 11, 12, 20, 22, 24 were read on this motion to/for DISMISS. The following e-filed documents, listed by NYSCEF document number (Motion 002) 13, 14, 15, 16, 17, 18, 19, 21, 23, 25 were read on this motion to/for STAY. DECISION + ORDER ON MOTION In this action for breach of contract arising out of a failed project to construct a giant observation wheel (the Wheel or the Project), defendant Mammoet Holding B.V. (MBV) moves pursuant to CPLR 3211(a) (1) and (7) to dismiss the complaint, and separately moves to stay discovery pending the resolution of the dismissal motion. Plaintiff New York Wheel Owner, LLC (New York Wheel) opposes the motions. Background¹ This action has its genesis in a March 5, 2014 design-build agreement (“DBA”) between Mammoet-Starneth LLC, known as the Design Build Team (“DBT”), and New York Wheel, the developer of the Project, under which DBT agreed to design and build the Wheel (NYSCEF # 9-Complaint,

2, 3; NYSCEF #10-DBA). The Wheel was to be located at the Staten Island waterfront as part of New York City’s economic revitalization plan (NYSCEF # 9, 1; NYSCEF #10, at 2). DBT had two members — Mammoet USA North, Inc. (MUSA) and Starneth, LLC (id., 12). MBV is DBT’s parent company, and owns and controls DBA and numerous Mammoet-affiliated entities (NYSCEF # 9;

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