Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 23

FCI Group Inc. was a building contractor hired by the City of New York. FCI's work was substantially completed when two Department of Citywide Administrative Services (DCAS) employees who oversaw FCI's work reported that envelopes containing $3,000 had been left on their desks. One envelope contained a change order request amounting to $101,708, which awaited the employee's approval. FCI's president and secretary, Choon Won Lee, admitted to leaving the envelopes, and he pled guilty to attempted giving of unlawful gratuities. DCAS cancelled the contract after Lee's misconduct and told FCI it would make no more payments on the construction work. FCI sued the city for the unpaid balance on the contract, $260,928. Should it recover? [ FCI Group Inc. v. City of New York , 862 N.Y.S.2d 352 (N.Y.App. Div.)]