S.S. SILBERBLATT, INC. v. EAST HARLEM PILOT BLOCK

No. 715, Docket 78-6191.

608 F.2d 28 (1979)

S.S. SILBERBLATT, INC., and S.S. Silberblatt, Inc., on behalf of itself and all other persons entitled to share in funds allocated for the improvements of real property owned by East Harlem Pilot Block — Building 1 Housing Development Fund Company, Inc., East Harlem Pilot Block — Building 2 Housing Development Fund Company, Inc., East Harlem Pilot Block — Building 3 Housing Development Fund Company, Inc., and East Harlem Pilot Block — Building 4 Housing Development Fund Company, Inc., Plaintiffs-Appellants, v. EAST HARLEM PILOT BLOCK — BUILDING 1 HOUSING DEVELOPMENT FUND COMPANY, INC., East Harlem Pilot Block — Building 2 Housing Development Fund Company, Inc., East Harlem Pilot Block — Building 3 Housing Development Fund Company, Inc., East Harlem Pilot Block — Building 4 Housing Development Fund Company, Inc., Patricia Roberts Harris, as Secretary of the United States Department of Housing and Urban Development and Chemical Bank, Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided October 1, 1979.

As Amended October 23, 1979.


Attorney(s) appearing for the Case

A. David Benjamin, New York City (Kenneth M. Block, Richard S. Fries, Demov, Morris, Levin & Shein, New York City, of counsel), for plaintiffs-appellants.

Jerome T. Orans, New York City (Gary H. Greenberg, Orans, Elsen, Polstein & Naftalis, New York City, of counsel), for defendants-appellees East Harlem Pilot Block — Buildings 1-4 Housing Development Fund Co., Inc.

Patrick H. Barth, Asst. U. S. Atty., New York City (Robert B. Fiske, Jr., U. S. Atty. for the Southern District of New York, Peter C. Salerno, Asst. U. S. Atty., New York City, Patricia Roberts Harris, Secretary of the Dept. of Housing and Urban Development, Washington, D. C., of counsel), for defendant-appellee Patricia Roberts Harris, Secretary, HUD.

Ann M. Galvani, New York City (Ralph L. McAfee, Richard S. Simmons, Lynne M. Barry, Cravath, Swaine & Moore, New York City, of counsel), for defendant-appellee Chemical Bank.

Before WATERMAN, FEINBERG and MANSFIELD, Circuit Judges.


MANSFIELD, Circuit Judge:

The principal question raised by this appeal is whether the Secretary of Housing and Urban Development may be held liable to a general contractor for amounts due on a project financed under § 236 of the National Housing Act, as amended, 12 U.S.C. § 1715z-1 (the Act).1 Plaintiff-appellant, S.S. Silberblatt, Inc., agreed as general contractor with East Harlem Pilot Block — Buildings 1-4 Housing...

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