MATTER OF RLI INSURANCE COMPANY, SURETY DIVISION v. NEW YORK STATE DEPARTMENT OF LABOR


282 A.D.2d 811 (2001)

722 N.Y.S.2d 618

In the Matter of RLI INSURANCE COMPANY, SURETY DIVISION, Appellant, v. NEW YORK STATE DEPARTMENT OF LABOR et al., Respondents.

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

Decided April 5, 2001.


Carpinello, J.

At issue is the question of whether a surety, which has posted performance and payment bonds on a public improvement project and which claims subrogation rights after paying completing contractors, laborers and materialmen, has a claim to funds still in the possession of the project owner superior to a claim filed by respondent Department of Labor (hereinafter respondent) for underpaid wages rendered on an unrelated project. Specifically, on...

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