New York Court of Appeals
Mount Vernon City School District v. Nova Casualty Company, Appellant-Respondent
April 3, 201219 N.Y.3d 28
Summary
The New York Court of Appeals affirmed the Appellate Division, holding that Nova Casualty Company remains liable on its performance bond despite the School District's $214,000 payment to the Department of Labor, and that the School District is not entitled to attorneys' fees for litigation. The Court reasoned that Nova did not complete the work and therefore lacks subrogation rights, and the bond does not unmistakably cover litigation fees. Chief Judge Lippman dissented, arguing that the payment violated the Lien Law and should discharge Nova.