On January 12, 2024, Justice Chan of the New York County Commercial Division issued a decision in Power A.C. Corp. v. Batirest 229 LLC, 2024 NY Slip Op. 30188(U), holding that contribution is unavailable on a contract claim, explaining:
Batirest’s sixth cause of action is for common law contribution and indemnification. Both contribution and indemnification are predicated on the contributor/indemnitor’ negligence. Here, the court has already dismissed Batirest’s negligence claims against the NYDA defendants as time barred. Consequently, without any existing negligence claims as against the NYDA defendants, Batirest’s claim for common law contribution and indemnification cannot stand.
In any event, Batirest’s common law contribution claim is dismissed under the economic loss doctrine. Claims for contribution are governed by CPLR 1401 and apply to damages for personal injury, injury to property or wrongful death only. Purely economic loss resulting from a breach of contract does not constitute ‘injury to property. Accordingly, contribution is unavailable where a plaintiffs direct claims against a codefendant seek only a contractual benefit of the bargain recovery, tort language notwithstanding. Here, Power Air in its lien foreclosure action against Batirest seeks recovery of purely economic loss for breach of contract and account stated. Contribution is therefore not available in these contract-based claims for purely economic loss.
(Internal quotations and citations omitted).