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NEWS

October 1, 2015

Jordan R. Pavlus Obtains a Trust Fund Diversion Judgment on Behalf of Subcontractor

Jordan R. Pavlus recently obtained a judgment for construction trust fund diversion on behalf of a subcontractor.  The cause of action was alleged pursuant to Article 3A of the New York State Lien Law.  The contractor had been served with a demand for a verified statement pursuant to section 76 of the Lien Law, to which it did not respond.  Therefore, pursuant to Lien Law section 75(4), the presumption arose that the contractor diverted trust funds.  Additionally, NYS precedent provides that officers of a company can be held individually liable for diversions of construction trust funds.

Mr. Pavlus filed a motion for a judgment on the trust fund diversion cause of action and it was granted against the individual officer of the corporation.

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