New York Court of Appeals

Caristo Construction Corporation v. Diners Financial Corporation, Appellant-Respondent

February 29, 196821 N.Y.2d 507

Summary

The New York Court of Appeals affirmed the Appellate Division, holding the factor liable for diversion of trust funds under the Lien Law and denying the general contractor’s claims for attorney’s fees and excess cost of completion. Chief Judge Fuld dissented, arguing the factor was not a transferee of trust assets and should not be liable.