IRR Supply Centers, Inc. v. Metzgar (In Re Metzgar)

CARL L. BUCKI, Bankruptcy Judge.

Many are the construction projects in which the general contractor fails to pay a supplier of materials, even after the general contractor has received full payment from the owner of the property. To facilitate payment and for the benefit of such suppliers, the New York Lien Law imposes a trust upon “funds received by a contractor under or in connection with a contract for an improvement of real property.” New York Lien Law § 70 sub. 1 (McKinney 1993). At issue in the present adversary proceeding is whether a particular project involved such an improvement of…