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Construction Litigation


Court Affirms Denial of Motion to Dismiss Aiding and Abetting a Fraud Claim, Finding All Elements Adequately Pleaded
By: Jeffrey M. Haber Liability for aiding and abetting a fraud is distinct from liability for committing the underlying fraud itself. This theory of liability recognizes that a defendant may substantially contribute to fraudulent misconduct without personally making any misrepresentation/omission or directly deceiving the plaintiff. Thus, instead of requiring proof that the defendant was the maker of a false statement or omission, an aiding‑and‑abetting theory turns on wheth

Jeffrey Haber
Feb 26 min read
Failure to Pierce the Corporate Veil Proves Fatal to Contract Claim Against Principal of Defendant and Related Entities
By: Jeffrey M. Haber To pierce the corporate veil under New York law, a plaintiff must satisfy a two‑part test and plead specific, non‑conclusory facts supporting each element. First, the plaintiff must show that the individual exercised complete domination and control over the corporation with respect to the specific transaction at issue. Second, even if domination exists, the plaintiff must show that the domination was used to commit a fraud, injustice, or other wrongful a
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Jan 288 min read
Interesting Twist on Lien Law Trust Funds
By: Jonathan H. Freiberger In a previous BLOG article, “ Real Property Owners and Contractors Should be Aware of the Trust Fund Provisions of New York’s Lien Law ,” we discussed Article 3-A of New York’s Lien Law, much of which is reiterated here. Article 3-A of New York’s Lien Law establishes a system of trusts to ensure that certain individuals or entities that contributed services, labor, and/or materials to a construction project for the improvement of real property are p
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Dec 19, 20256 min read
The Second Department Holds, in a Case of First Impression in The Department, That the Failure to Comply with the Soldiers’ and Sailors’ Relief Act When Seeking a Default Judgment is a Mere Irregul...
By: Jonathan H. Freiberger In today’s BLOG we will discuss Tri-Rail Designers & Builders, Inc. v. Concrete Superstructures, Inc. , a case decided on November 12, 2025, by the Appellate Division, Second Department. In Tri-Rail , the Court decided a “question which has not been directly addressed” in the Second Department involving the impact of non-compliance with the Servicemembers Civil Relief Act (f/k/a the Soldiers’ and Sailors’ Civil Relief Act) (the “Act”) on obtaining a
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Nov 14, 20254 min read
Consequential Damages: Are They Foreseeable?
By: Jeffrey M. Haber In BLDG 44 Developers LLC v. Pace Companies N.Y., LLC , 2025 N.Y. Slip Op 32881(U) (Sup. Ct., N.Y. County July 25, 2025) ( here ), BLDG 44 Developers LLC sued Pace Companies New York, LLC for breach of contract, seeking approximately $16 million in consequential damages related to delays in a construction project on E. 44th Street, New York, N.Y. BLDG, the project owner, was a third-party beneficiary to a subcontract between Pace and Noble Construction G
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Aug 27, 20257 min read
Second Department, Once Again, Dismisses Payment Claim of Unlicensed Electrical Contractor Despite Close Relationship with Licensed Electrical Contractor that Obtained the Permits and Performed the...
By: Jonathan H. Freiberger This BLOG has previously addressed issues related to proper licensure for contractors and the problems that arise for them if they perform work without a license. See, e.g. , < here =">here</a>"> , < here =">here</a>"> , < here =">here</a>"> and < here =">here</a>"> . As previously noted in prior articles, contractors are frequently required by municipalities to be licensed. Unlicensed home improvement contractors are precluded from collecting paym
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Dec 20, 20245 min read
The First Department Holds That Completing Surety Under Performance Bond Is Not Entitled to File Mechanic’s Lien
By: Jonathan H. Freiberger Today’s BLOG article is about Thorobird Grand LLC v. M. Melnick & Co. , a case decided by the Appellate Division, First Department, on December 12, 2024, and which involves mechanic’s liens. The Facts of Thorobird Plaintiff, as owner, hired defendant M. Melnick & Co., as contractor, on several projects. Pursuant to the parties’ agreement, contractor was required to procure performance and payment bonds from a surety; in this case, defendant Federa
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Dec 13, 20243 min read
First Department Holds That a Business-Entity Owner of Residential Property Can Avail Itself of the Protections of the New York City Home Improvement Contractor’s License Requirement
By Jonathan H. Freiberger In order to protect homeowners, home improvement contractors are frequently required by municipalities to be licensed. Unlicensed home improvement contractors are precluded from collecting payments due from homeowners. Brightside Home Improvements, Inc. v. Northeast Home Improvement Services , 208 A.D.3d 446, 449 (2 nd Dep’t 2022). This BLOG has discussed such issues < here =">here</a>"> and < here =">here</a>"> . Along these lines, CPLR § 3015
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Jan 26, 20244 min read
First Department Grants Extension of Time to Serve Summons and Complaint on a Mechanic’s Lien Discharge Bond Surety Under CPLR 306
By Jonathan H. Freiberger Today’s Blog relates to extensions of time to serve a defendant under CPLR 306-b, a topic previously addressed by this Blog < HERE =">HERE</a>"> , < HERE =">HERE</a>"> and < HERE =">HERE</a>"> . The background discussion in today’s Blog was taken from the linked prior Blogs. Under the present “commencement by filing” system, an action (or proceeding) (collectively, an “Action”) is commenced by filing (CPLR 304(a)) the initiatory paper(s) with the “
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Jan 12, 20245 min read
First Department Finds Mechanic’s Lien is Willfully Exaggerated Under the Lien Law
By Jonathan H. Freiberger Mechanic’s liens are powerful tools that can be used by contractors, laborers and materialmen, among others, to assist in getting paid for work performed in improving real property. Indeed: The object and purpose of mechanics’ lien law was to protect a person who, with the consent of the of the owner of real property, enhanced its value by furnishing materials or performing labor in its improvement, by giving him an interest therein to the extent o
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Dec 12, 20224 min read
First Department Holds That Scaffolding and Sidewalk Shed Installed For Construction Project Could Not Support Mechanic’s Lien Because They Were Not “Permanent Improvements”
By Jonathan H. Freiberger This Blog, in “ The New York Court of Appeals Addresses the Issue of When a Mechanic’s Lien Can Be Placed on a Landlord’s Property By A Contractor Performing Work For A Tenant ,” quoting John P. Kane Co. v. Kinney , 12 Bedell 69 (1903), explained the purpose of a mechanic’s lien as follows: The object and purpose of mechanics’ lien law was to protect a person who, with the consent of the of the owner of real property, enhanced its value by furnishin
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Nov 14, 20223 min read
SUBCONTRACTOR TO UNLICENSED GENERAL CONTRACTOR NOT PERMITTED TO MAKE CLAIM DIRECTLY AGAINST HOMEOWNER
By Jonathan H. Freiberger Municipalities generally require home improvement contractors to be licensed to perform work. “Where a home improvement contractor is not properly licensed in the municipality where the work is performed at the time the work is performed, the contractor forfeits the right to recover for the work performed, both under the contract and on a quantum meruit basis.” Brightside Home Improvements, Inc. v. Northeast Home Improvement Services , 208 A.D.3d 4
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Oct 14, 20224 min read
Willful Exaggeration under Lien Law 39-a
By Jonathan H. Freiberger Laborers and material suppliers (collectively, “Providers”) that add value to construction projects should be paid for their work by the owner, general contractor or whoever else brought them to the project in the first instance. If Providers do not receive payment despite their own performance, several remedies are available. For example, a simple claim for breach of contract may be brought by an unpaid Provider. Such remedies, however, may be in
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Jul 22, 20226 min read
APPELLATE DIVISION, FIRST DEPARTMENT, GRANTS SUMMARY JUDGMENT AS A RESULT OF PARTY’S FAILURE TO PROCURE CONTRACTUALLY REQUIRED GENERAL LIABILITY INSURANCE
By Jonathan H. Freiberger It is common for contracts to require that one party procure, for its own protection and for the protection of the other party, specific types of insurance coverage and the dollar amounts of such coverage. Insurance procurement provisions are typically found in, among others, construction contracts and real property leases. Such insurance procurement provisions are material parts of the contracts in which they appear. On March 15, 2022, the Appella
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Mar 18, 20223 min read
The First Department Reiterates the “Strict Nature” of “Notice -to-Cure” Provisions in Construction Contracts
By Jonathan H. Freiberger Many contracts contain provisions requiring that in the event of a default, one party must provide to the other notice of the purported default and an opportunity to cure before the valuable rights under the contract can be terminated. In general “ he purpose of a Notice to Cure is to specifically apprise the of claimed defaults in its obligations under the and of the forfeiture and termination of the if the claimed default is not cured within a
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Oct 13, 20214 min read
The Third Department Addresses Liability for Construction Related Flood Damage Resulting From the Diversion of Storm Water – Volume 2
By Jonathan H. Freiberger Last week this Blog examined WFE Ventures, Inc. v. GBD Lake Placid, LLC , decided on August 12, 2021, by the Appellate Division, Third Department, which addressed numerous construction litigation issues < here =">here</a>"> . Last week’s article focused on issues related to flood damage resulting from an underlying construction project; this week we will address other issues presented in the Court’s Memorandum and Order. Knowledge of the facts as s
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Aug 27, 20214 min read
The Third Department Addresses Liability for Construction Related Flood Damage Resulting From the Diversion of Storm Water
By Jonathan H. Freiberger On August 12, 2021, the Appellate Division, Third Department, decided WFE Ventures, Inc. v. GBD Lake Placid, LLC , a multi-faceted construction litigation. Today’s article, however, will focus on flood damage resulting from the underlying construction project. In WFE , the defendant owner (“Owner”) built a Marriot hotel in Lake Placid. Owner hired an architectural firm (“Architect”) to obtain site plan (“Plan”) approval (“Approval”) from the applic
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Aug 20, 20215 min read
Forget Pfizer!!! Obliterate COVID-19 With a Dose of the Mootness Doctrine
“It is a fundamental principle of our jurisprudence that the power of a court to declare the law only arises out of, and is limited to, determining the rights of persons which are actually controverted in a particular case pending before the tribunal.” Matter of Darcy M. , ___ A.D.3d ___ *1 (2 nd Dep’t June 9, 2021) (quoting Matter of Hearst Corp. v. Clyne , 50 N.Y.2d 707, 713 (1980)) (internal quotation marks omitted). Courts cannot issue “advisory opinions”. Matter of D
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Jun 25, 20214 min read
VARIATIONS ON A THEME: SECOND DEPARTMENT DISMISSES COUNTERCLAIM FOR NEGLIGENT CONSTRUCTION AS DUPLICATIVE OF DEFENDANT’S BREACH OF CONTRACT COUNTERCLAIM
This Blog frequently highlights cases analyzing the viability of fraud claims when contract claims are also made. See, e.g., < here =">here</a>"> , < here =">here</a>"> , < here =">here</a>"> , < here =">here</a>"> , < here =">here</a>"> , < here =">here</a>"> . In Michael Davis Construction, Inc. v. 129 Parsonage Lane, LLC , decided on May 12, 2021, the Second Department dismissed defendant’s negligent construction counterclaim as duplicative of its breach of contract coun
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May 14, 20214 min read
LOVE THY NEIGHBOR: REVISITED
In our prior Blog “ ’Love Thy Neighbor’ Is Not Always the Case ,” which should be reviewed in conjunction with the instant Blog, section 881 of New York’s Real Property Actions and Proceedings Law (the “RPAPL”) was explored. Briefly stated, access to a neighboring property is sometimes necessary to improve or repair one’s own property (the “Work”). In many cases neighbors can amicably resolve such access issues. This can be done informally or through a formal access agree
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Jul 24, 20203 min read
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