Legal Opinion
Aspro Mechanical Contracting, Inc. v. Fleet Bank, N.A.
Appellate Division of the Supreme Court of the State of New York
Decided May 20, 2002PublishedCited by 3 opinions
1Opinion of the Court
OPINION OF THE COURT
Luciano, J.
A lender who takes an assignment of a contract to improve and convey real property as security for a building loan can be held liable as a trustee under Lien Law article 3-A for the claims of subcontractors if it receives direct payment of the sale proceeds pursuant to the assignment and applies those proceeds to repayment of the loan it made to the owner of the property.
The salient facts are undisputed. Berry Street Corp. had a contract with the New York City Housing Authority (hereinafter NYCHA) to acquire certain property in Brooklyn, construct residences…
2Cases cited7 opinions
- Caristo Construction Corp. v. Diners Financial Corp.New York Court of Appeals · 1968
- Canron Corp. v. City of New YorkNew York Court of Appeals · 1996
- RLI Insurance v. New York State Department of LaborNew York Court of Appeals · 2002
- National Surety Corp. v. Fishkill National BankNew York Supreme Court · 1969
- National Surety Corp. v. Fishkill National BankAppellate Division of the Supreme Court of the State of New York · 1971
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3Cited by3 opinions
- ECD NY Inc. v. 616 First Ave. Dev. LLCAppellate Division of the Supreme Court of the State of New York · 2020
- LeChase Data/Telecom Services, LLC v. GoebertNew York Supreme Court · 2003
- ECD NY Inc. v. 616 First Ave. Dev. LLCAppellate Division of the Supreme Court of the State of New York · 2020