L & W Supply Corp. v. DeSilva

The opinion of the court was delivered by

ASHRAFI, J.A.D.

This appeal requires our application of the Construction Lien Law, N.J.S.A. 2A:44A-1 to -38, where a subcontractor became insolvent and did not pay for all the materials it purchased for a building project. The Supreme Court held in Craft v. Stevenson Lumber Yard, Inc., 179 N.J. 56, 63, 843 A.2d 1076 (2004), that a materials supplier that seeks to file a construction lien has a duty *183to apply payments correctly against several open accounts of a materials purchaser, such as a subcontractor, if the supplier has reason to know that the…