Welsbach Electric Corp. v. MasTec North America, Inc.

OPINION OF THE COURT

Rosenblatt, J.

For well over a century, parties to construction contracts in New York were permitted by decisional law and by statute to *627agree to “pay-if-paid” provisions. Agreements of that type create a condition precedent by which the subcontractor will not be paid unless the contractor has been paid. In 1995, however, we held in West-Fair Elec. Contrs. v Aetna Cas. & Sur. Co. (87 NY2d 148 [1995]) that such contracts violate New York’s public policy as expressed in Lien Law § 34. That section provides in pertinent part: “Notwithstanding the provisions of any other law,…