Berley Industries, Inc. v. City of New York

Summary

The New York Court of Appeals reversed the Appellate Division and remanded for a new trial limited to delay damages, holding that the trial court erred in allowing the unsubstantiated Eichleay formula to determine home‑office overhead. The court emphasized that a contractor must prove actual increased overhead costs and that a mathematical formula alone is insufficient. Justice Jones, in a concurring opinion, agreed with the reversal but cautioned that the Eichleay formula may be appropriate when proper proof exists.