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LeCHASE DATA v. GOEBERT

6 N.Y.3d 281 (2006)

844 N.E.2d 771

811 N.Y.S.2d 317

LeCHASE DATA/TELECOM SERVICES, LLC, on Behalf of Itself and All Others Similarly Situated, Appellant, v. DANIEL GOEBERT et al., Defendants, and BUSINESS FUNDING GROUP, INC., Respondent. (Action No. 1.) LeCHASE DATA/TELECOM SERVICES, LLC, on Behalf of Itself and All Others Similarly Situated, Appellant, v. MARK BURGHOLZER, Doing Business as BUSINESS FUNDING GROUP, Respondent. (Action No. 2.)

Court of Appeals of the State of New York.

Decided February 21, 2006.

Attorney(s) appearing for the Case

Gates & Adams, P.C., Rochester (Anthony J. Adams, Jr. of counsel), for appellant.

Barth, Sullivan & Behr, LLP, Buffalo (Philip B. Abramowitz of counsel), for respondents.

Chief Judge KAYE and Judges G.B. SMITH, CIPARICK, ROSENBLATT, GRAFFEO and R.S. SMITH concur.

OPINION OF THE COURT

READ, J.

We are asked to decide what kind of "notice" disqualifies a factor from exemption from Lien Law liability as a "purchaser in good faith for value and without notice" (Lien Law § 72 [1]). We conclude that actual knowledge of diversion of trust assets is not required, and that UCC 1-201 (25) supplies the proper standard of notice. We further conclude that defendants have not...

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