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MOUNT VERNON v. NOVA CAS. CO.

No. 52.

19 N.Y.3d 28 (2012)

2012 NY Slip Op 2415

MOUNT VERNON CITY SCHOOL DISTRICT, Respondent-Appellant, v. NOVA CASUALTY COMPANY, Appellant-Respondent, et al., Defendant.

Court of Appeals of New York.

Decided April 3, 2012.

Attorney(s) appearing for the Case

Law Office of Neil B. Connelly, Esq. PLLC, White Plains ( Neil B. Connelly of counsel), for appellant-respondent.

Cohen & Perfetto, New York City ( Andrea Tersigni and Anthony L. Tersigni of counsel), for respondent-appellant.

Judges GRAFFEO, READ, SMITH and PIGOTT concur with Judge CIPARICK; Chief Judge LIPPMAN dissents in part in a separate opinion in which Judge JONES concurs.

OPINION OF THE COURT

CIPARICK, J.

On this appeal, we are called upon to determine whether defendant Nova Casualty Company (Nova) is discharged from its surety obligation to plaintiff Mount Vernon City School District (the School District) on the bases that the School District allegedly violated New York's Lien Law by improperly diverting construction contract payments constituting trust fund assets to a nonbeneficiary...

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