DONJON MARINE CO., INC. v. MERGENTIME CORP.


203 A.D.2d 129 (1994)

610 N.Y.S.2d 784

Donjon Marine Co., Inc., Respondent, v. Mergentime Corp., Appellant

Appellate Division of the Supreme Court of the State of New York, First Department.

April 19, 1994


The court properly applied Lien Law § 77 (3) (a) to impress a trust upon monies received by defendant contractor pending determination of plaintiff subcontractor's claim to such funds and defendant's alleged diversion thereof (Lien Law § 71 [2]; Aquilino v United States, 10 N.Y.2d 271, 278-280). Defendant was not entitled to pay valid business expenses or itself prior to payment...

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