Appellate Division, First Department · September 10, 2026 · 2026 NY Slip Op 05237
Gamma USA, Inc. v Pavarini McGovern, LLC
Read the official decision: 2026 NY Slip Op 05237
Holding The Appellate Division modified the lower court’s order to dismiss only those portions of the counterclaim seeking delay damages in excess of the $3.6 million liquidated damages cap and consequential damages. The court held that the contractual provisions did not limit the recovery of the Owner’s direct damages, which remained recoverable under the pass-through claim.
The court’s words
The relevant agreements do not, as the court found, restrict the other damages that the General Contractor may recover on behalf of the Owner.
2026 NY Slip Op 05237, at the official text
Consequential damages are meant to compensate for indirect losses, and are but a small subset of permissible damages under a contract
2026 NY Slip Op 05237, at the official text
| Court | Appellate Division, First Department |
|---|---|
| Decided | September 10, 2026 |
| Citation | 2026 NY Slip Op 05237 |
| Area of law | Contracts and Commercial |
| Week | Week ending September 12, 2026 |
| Official text | Official decision: 2026 NY Slip Op 05237 |
| Publication status | Slip opinions are uncorrected and subject to revision before publication in the Official Reports. |
| Source feed | New York slip opinion page |
| Law Watch record id | 135 |
Recommended citation
ESQ HQ, New York Law Watch, Gamma USA, Inc. v Pavarini McGovern, LLC, 2026 NY Slip Op 05237 (Appellate Division, First Department, September 10, 2026), https://esqhq.com/decisions/2026-ny-slip-op-05237/
How this record was made
Holding drafted by Law Watch’s in-house model, graded by three reviewers; every quotation verified word for word against the official text.
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