NJ Court Clarifies Inquiry Duties For Construction Liens

Law360, New York (December 19, 2012, 3:49 PM EST) -- A supplier that wants to bring a construction lien claim against a prime contractor for money owed by a bankrupt subcontractor must inquire about the original source of any payments it has already received from the subcontractor, to make sure it has correctly allocated them among project accounts, a New Jersey court ruled Wednesday.

In a published opinion, the state's Appellate Division reversed summary judgment against Patock Construction Co. Inc. — general contractor for an assisted living facility — and Travelers Casualty and Surety Co. of...
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