Construction and development projects brim with the potential for disputes. But before taking drastic measures, parties to such a dispute must carefully consider the consequences of their actions. New York’s Lien Law regulates important aspects of the relationships between owners, contractors, and subcontractors, including the proper use and disposition of construction financing. Failure to adhere strictly to the Lien Law’s requirements governing such funds can expose unwary contractors—and their principals—to fiduciary-duty liability, as the court made clear in 107 S. Albany St., LLC v. Scott, 211 A.D.3d 1380 (3d Dep’t 2022).
Read the full blog post here.