Residence Inn wants to bill New Rochelle for $425,000 in water damages

Residence Inn by Marriott claims that the City of New Rochelle should cover more than $425,000 in water damages caused by a burst pipe in the municipal parking garage connected to the hotel.

Chatham New Rochelle RI, the West Palm Beach, Florida company that owns the hotel, petitioned Westchester Supreme Court on May 12 for a chance to file a claim.

New York law requires the notice of a claim to be served to a municipality within 90 days of the incident.

Chatham, according to the petition, believed it had given adequate notice two days after the incident, and again 84 days after the incident, but submitted a formal claim three days after the deadline.

The city’s outside claims adjuster rejected the claim as untimely.

On Dec. 26 when a sprinkler pipe in the garage burst, next to the Residence Inn elevators, and damaged the hotel lobby and back offices at 35 LeCount Place.

The elevators, HVAC system, electrical system, and office equipment were ruined, according to the petition. Guests had to be taken to other hotels.

On Dec. 29 — day 3 — Chatham vice president Eric Kentoff emailed a letter to Rebeca J. Bonacci, the city’s manager of public properties and parking, advising her that New Rochelle was responsible for the damages.

Bonacci responded, “I am in receipt of your letter and will forward accordingly.”

Kentoff says he believed that Bonacci’s reply meant that Chatham had given adequate notice of a claim to the city.

On March 20 — day 84 — Chatham emailed another letter to Bonacci demanding $425,457, including $169,398 for the elevators, $68,823 in cancellations and refunds, $57,414 for the HVAC and electrical system, $54,210 for water mitigation, and $50,589 for renovations.

Kentoff says he received no response from the city.

On March 28 — day 92 — Chatham official Dennis Craven emailed Bonacci: “Rebeca, please provide an update on this very important matter. Significant monies have been incurred by and are owed to Chatham.”

Bonacci replied that she had not received the March 20 demand letter but said that Chatham’s original Dec. 28 email had been forwarded to the city’s legal department on Dec. 29.

On March 29 — day 93 — Bonacci notified Chatham officials that the legal department had advised her that a notice of claim must be filed with the legal department. Chatham sent the notice to the legal department on the same day, by certified mail.

Chatham says it received no response from the city.

Instead, on April 10 — day 105 — it received a letter from Sedgwick, a Long Island company that manages claims for New Rochelle, rejecting the claim for not being served within 90 days.

Chatham protected its rights to pursue a claim by placing the city on notice in the Dec. 29 and March 20 letters, the hotelier claims, and had not been told that its demand was deficient.

Now it is asking the court to grant its request to serve a late notice.