General Contractor’s Trust Fund Payments to Subcontractor Were Not Improper

Metro Found. Contractors, Inc. v. Marco Martelli Assocs., Inc., 78 A.D.3d 594, 912 N.Y.S.2d 187 (N.Y. App. Div. 2010)

In Metro Foundation Contractors, the Appellate Division, First Department, denied the plaintiff subcontractor’s motion for summary judgment, finding that fact issues remained as to whether the plaintiff defaulted under the subcontract and as to whether defendant general contractor’s payments to the plaintiff and to vendors were proper.  The court did hold that the defendant did not violate New York’s lien law in paying trust funds to the plaintiff and vendors, who were the proper beneficiaries.

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