Allis-Chalmers Mfg. Co. v. Malan Construction Co., 30 N.Y.2d 285 (1972)

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When a plaintiff voluntarily pleads performance of specific contractual conditions rather than relying on the presumption of performance under CPLR 3015(a), a general denial by the defendant is sufficient to raise an issue as to those specific conditions.

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Summary

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Allis-Chalmers sued Malan Construction for breach of contract related to the supply of equipment for a city project. Allis-Chalmers, instead of relying on the implied performance of conditions precedent under CPLR 3015(a), specifically alleged performance of certain conditions. Malan Construction issued a general denial. The trial court, relying on CPLR 3015(a), precluded Malan from introducing evidence of non-performance based on the general denial. The New York Court of Appeals reversed, holding that when a plaintiff pleads specific performance of conditions precedent, a general denial is sufficient to place those allegations in issue.

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Facts

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Malan-Buckley contracted with New York City for a water pollution control project.r
Allis-Chalmers agreed to supply equipment to Malan-Buckley for $788,500, with payment contingent on Malan-Buckley receiving payment from the city.r
Allis-Chalmers claimed Malan-Buckley breached the contract by failing to pay for equipment used in the project.r
Allis-Chalmers filed a notice of lien on funds due to Malan-Buckley from the city and initiated a foreclosure action.

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Procedural History

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Allis-Chalmers sued to foreclose on a mechanic’s lien.r
Special Term (trial court) precluded Malan-Buckley from examining Allis-Chalmers on performance issues, deeming Malan-Buckley’s general denial insufficient under CPLR 3015(a).r
The Special Referee adopted this interpretation, preventing Malan-Buckley from introducing evidence of non-performance.r
Judgment was entered for Allis-Chalmers.r
The Appellate Division affirmed.

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Issue(s)

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Whether CPLR 3015(a) requires a defendant to deny