214 A.D.2d 115 (1995)

631 N.Y.S.2d 642

Canron Corp., on Behalf of Itself and All Others Similarly Situated, Respondent, v. City of New York et al., Appellants

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

September 14, 1995

Attorney(s) appearing for the Case

Michael S. Adler of counsel, New York City (Francis F. Caputo on the brief; Paul A. Crotty, Corporation Counsel of New York City, attorney), for appellants.

Glen J. Fuerth of counsel, New York City (David S. Sheiffer on the brief; Wilson, Elser, Moskowitz, Edelman & Dicker, and Ray L. LeFlore, attorneys), for respondent.

MURPHY, P. J., ASCH and WILLIAMS, JJ., concur with RUBIN, J.; SULLIVAN, J., dissents in a separate opinion.


This appeal presents a question with respect to the interpretation of section 70 (1) of the Lien Law. Specifically at issue is when funds are considered "received by a contractor under or in connection with * * * a contract for a public improvement in this state" so as to be impressed with a trust in favor of a subcontractor. It is clear from the facts stipulated by the parties and submitted to Supreme...

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