Trusts & Estate Planning: What if My Important Documents Are Destroyed in a Disaster?

Alison Arden BesunderBlog Post, Insight

Contact:
Alison Arden Besunder
212-695-8100, ext. 289
[email protected]

What if My Important Documents Are Destroyed in a Disaster?

It’s a good idea to keep an inventory of your important papers, and keep it online in a secure cloud storage and/or as a hard copy in your office or a safe place (it’s fine to keep this inventory in a safe deposit box).

We maintain one set of originals of our clients’ estate planning documents, with the exception of the original will, which is returned to the client.
If your documents are damaged or destroyed in a flood or fire, we can help you to re-execute the documents.

If an original will that was in the possession of the testator is lost, depending on the circumstances, a copy of the Will could potentially be admitted to probate. However, this is a very fact-specific situation and is not always guaranteed.

Goetz Fitzpatrick has been practicing law throughout the New York Metropolitan area and The Hamptons, since 1967. The firm has deep expertise in Construction and Real Estate, as well as Corporate, Bankruptcy, Trust & Estates and Labor & Employment. The firm’s office is located at One Penn Plaza, Suite 3100, New York, NY 10119, Telephone 212 695 8100.

Author

Alison Arden Besunder

Alison Arden Besunder, Esq. is Chair in the Trusts & Estates Planning and Fiduciary Litigation group at Goetz Fitzpatrick. She has extensive experience and focuses her practice in the areas of Trusts & Estate Planning, Guardianship, Estate Litigation, Commercial Litigation, Elder Law, and Business Succession Planning.

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Trusts & Estate Planning: Where Should I Keep My Important Estate Planning Documents?

Alison Arden BesunderBlog Post, Insight

Contact:
Alison Arden Besunder
212-695-8100, ext. 289
[email protected]

Where Should I Keep My Important Estate Planning Documents?

I generally recommend against keeping important documents in a safe deposit box at the bank. Why? Here are just a few important reasons:

In case of an emergency, it is another stop you would have to make in order to get the documents out rather than having them accessible in your home.

If someone goes to the hospital late at night or on the weekend, the bank is not likely to be open in order for you to obtain the documents.

If someone dies, you will need a court order to access the box. It does not matter if you are a joint owner on the account. The banks will restrict access to a safe deposit box when one owner dies.

You can obtain an order from the court to obtain access to the box and inventory it with a bank employee, but you will not be able to remove any items from the box.

Goetz Fitzpatrick has been practicing law throughout the New York Metropolitan area and The Hamptons, since 1967. The firm has deep expertise in Construction and Real Estate, as well as Corporate, Bankruptcy, Trust & Estates and Labor & Employment. The firm’s office is located at One Penn Plaza, Suite 3100, New York, NY 10119, Telephone 212 695 8100.

Author

Alison Arden Besunder

Alison Arden Besunder, Esq. is Chair in the Trusts & Estates Planning and Fiduciary Litigation group at Goetz Fitzpatrick. She has extensive experience and focuses her practice in the areas of Trusts & Estate Planning, Guardianship, Estate Litigation, Commercial Litigation, Elder Law, and Business Succession Planning.

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Trusts & Estate Planning: Everyone Needs These 3 Must-Have Documents for Estate Planning

Alison Arden BesunderBlog Post, Insight

Contact:
Alison Arden Besunder
212-695-8100, ext. 289
[email protected]

Everyone Needs These 3 Must-Have Documents for Estate Planning

An Estate Plan ensures that your needs, your families’ needs, and financial goals are met during your lifetime and upon your death.

A thorough and comprehensive plan would include:

  • A Last Will & Testament
  • A Power of Attorney
  • A Health Care Proxy
  • A Living Will
  • A Trust (depending on your needs).

Although we all expect the best, it is always good to prepare for the worst. Leaving loose ends when it comes to your estate can lead to family fights and expensive legal bills. Spare your family by being prepared.

There are three documents that are absolute musts:

  • A Will
  • A durable Power of Attorney, for finances and other personal matters
  • A Health Care Proxy, known in some states as a “power of attorney for health care”

Some people may also find it beneficial to have a revocable trust. If you own property in more than one state, for example, this would allow you to avoid probate in each of those jurisdictions.

“That’s easy enough,” you say. “I can just find all the forms I need online, right?”

Well, you can, but it’s not a good idea. Only a lawyer can truly assess your needs and give you a global evaluation and documents tailored to your circumstances and situation.

Although a “kit” may be cheaper on the front end, it could cost you and your estate and heirs many, many times more than that when the documents are challenged in court and ultimately held to be ineffective, void, or construed in a manner contrary to what you intended.

Goetz Fitzpatrick has been practicing law throughout the New York Metropolitan area and The Hamptons, since 1967. The firm has deep expertise in Construction and Real Estate, as well as Corporate, Bankruptcy, Trust & Estates and Labor & Employment. The firm’s office is located at One Penn Plaza, Suite 3100, New York, NY 10119, Telephone 212 695 8100.

Author

Alison Arden Besunder

Alison Arden Besunder, Esq. is Chair in the Trusts & Estates Planning and Fiduciary Litigation group at Goetz Fitzpatrick. She has extensive experience and focuses her practice in the areas of Trusts & Estate Planning, Guardianship, Estate Litigation, Commercial Litigation, Elder Law, and Business Succession Planning.

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Trusts & Estate Planning: What is Estate Planning?

Alison Arden BesunderBlog Post, Insight

Contact:
Alison Arden Besunder
212-695-8100, ext. 289
[email protected]

What is Estate Planning?

An Estate Plan ensures that your needs, your families’ needs, and financial goals are met during your lifetime and upon your death.

A thorough and comprehensive plan would include:

  • A Last Will & Testament
  • A Power of Attorney
  • A Health Care Proxy
  • A Living Will
  • A Trust (depending on your needs).

Everybody needs an Estate Plan because it states how your assets are to be distributed upon your death through a Will and/or Trust and whom you would want to handle your financial and health matters during your lifetime with a Health Care Proxy, Living Will and Power of Attorney.

It is critical to have Estate Planning documents done by an attorney, even if you think you may not have a “taxable” estate. Leaving the administration of your affairs to chance without a will, or with documents not specifically tailored to your personal needs and circumstances, can lead to drastic and often costly consequences.

Goetz Fitzpatrick has been practicing law throughout the New York Metropolitan area and The Hamptons, since 1967. The firm has deep expertise in Construction and Real Estate, as well as Corporate, Bankruptcy, Trust & Estates and Labor & Employment. The firm’s office is located at One Penn Plaza, Suite 3100, New York, NY 10119, Telephone 212 695 8100.

Author

Alison Arden Besunder

Alison Arden Besunder, Esq. is Chair in the Trusts & Estates Planning and Fiduciary Litigation group at Goetz Fitzpatrick. She has extensive experience and focuses her practice in the areas of Trusts & Estate Planning, Guardianship, Estate Litigation, Commercial Litigation, Elder Law, and Business Succession Planning.

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Unraveling the Corporate Transparency Act

Alison Arden BesunderBlog Post, Insight, Latest news

Contact:
Alison Arden Besunder
212-695-8100, ext. 289
[email protected]

Aaron Boyajian
212-695-8100, ext. 258
[email protected]

The Corporate Transparency Act (CTA) (www.fincen.gov/boi) is now in effect, bringing forth pivotal changes in reporting obligations for diverse entities. At Goetz Fitzpatrick LLP, we recognize the intricate landscape this legislation introduces and are committed to guiding our clients through its nuances. The CTA mandates beneficial ownership reporting, aiming to bolster transparency and combat financial misconduct. If your entity falls within the scope of this regulation or requires assistance with the Beneficial Ownership Information (BOI) report, our adept team stands ready to assist. Reach out to us for support and guidance on CTA compliance.

What Is the Corporate Transparency Act: Your Comprehensive Compliance Guide

The Corporate Transparency Act (CTA), implemented on January 1, 2021, under the National Defense Authorization Act, substantially reforms anti-money laundering laws. Its primary aim is to curb money laundering, terrorist financing, corruption, and tax fraud by mandating beneficial ownership reporting for various entities operating in the United States.

Key Points:

Effective Dates: The reporting obligations came into force on January 1, 2024. Entities formed before this date have until January 1, 2025, to comply.

Filing Requirements: Filing deadlines differ based on entity formation dates, with a grace period provided for entities established in 2024.

Reporting Companies: Various domestic and foreign entities, known as reporting companies, are mandated to submit beneficial ownership information to FinCEN.

Exemptions: Several categories, such as banks, tax-exempt entities, and certain partnerships, are exempt from reporting. A “large operating company” is also excluded based on specific criteria.

Tax-Exempt Entities: Tax-exempt entities must monitor their status; if they lose their exemption, they need to report within 180 days.

Information Required: Details about the company, beneficial owners, and company applicants are needed, including identification documents, such as a registration certificate.

Submission Method: Reports must be submitted electronically through FinCEN’s Beneficial Ownership Secure System (BOSS).

Access and Confidentiality: The disclosed information is accessible to authorized recipients for defined purposes, with security and confidentiality protocols.

Updates and Corrections: Reporting companies must promptly update or correct any inaccuracies or changes within specific time frames.

Penalties: Non-compliance, including false reporting, can result in civil or criminal penalties.

FinCEN Identifier: While not mandatory, a unique FinCEN identifier may be obtained and utilized to streamline reporting processes.

Conclusion:

The CTA’s implementation imposes stringent reporting requirements on various entities, aiming to enhance transparency and combat financial crimes. Understanding these obligations and adhering to reporting timelines and accuracy is crucial to avoid penalties and ensure compliance with the law. In all instances, businesses and entities should familiarize themselves with the law’s provisions and seek legal counsel to ensure adherence to regulatory requirements.

For entities which Goetz Fitzpatrick forms for its clients after January 1, 2024, we will work to guide them through the CTA compliance process.  For entities which were formed prior to January 1, 2024, you may be contacted by our office to assist in the CTA compliance process, however, if not, we strongly recommend that you contact us to assist you in the CTA compliance process so that you avoid potential non-compliance and the rigorous penalties which accompany non-compliance.

Goetz Fitzpatrick has been practicing law throughout the New York Metropolitan area and The Hamptons, since 1967. The firm has deep expertise in Construction and Real Estate, as well as Corporate, Bankruptcy, Trust & Estates and Labor & Employment. The firm’s office is located at One Penn Plaza, Suite 3100, New York, NY 10119, Telephone 212 695 8100.

Author

Alison Arden Besunder

Alison Arden Besunder, Esq. is Chair in the Trusts & Estates Planning and Fiduciary Litigation group at Goetz Fitzpatrick. She has extensive experience and focuses her practice in the areas of Trusts & Estate Planning, Guardianship, Estate Litigation, Commercial Litigation, Elder Law, and Business Succession Planning.

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Author

Aaron Boyajian

Aaron Boyajian concentrates on business law and transactions, specializing in real estate and closely-held companies.

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Major Impact on NYS Private Construction: 5% Maximum Retainage on Private Construction Contracts

Gerard StrainBlog Post, Insight, Latest news

Major Impact On All Nys Private Construction Contracts As Nys Governor Hochul Signs Law To Mandate 5% Maximum Retainage On All Private Construction Contracts And Payment Of Retainage Can Now Be Sought Upon Substantial Completion

 

On November 17, 2023, NYS Governor Kathy Hochul signed into law significant modifications to General Business Law §§756-A and 756-C which will have a great impact on construction agreements for private projects.  Specifically, GBL §756-A was amended to now provide that contractors and subcontractors may submit a final invoice for work performed and the release of retainage upon substantial completion of the project.   Also, GBL §756-C was amended to provide that five percent (5%) of the contract sum is the maximum allowable retainage that can be withheld from the contractor or subcontractor (as the case may be), during the project.

Retainage Must Now Be Released Upon “Substantial Completion”

Prior to the effective date of the new law, which is November 17, 2023, GBL §756-A entitled a contractor or subcontractor to submit a final invoice for payment “upon the performance of all the contractor’s obligation under the contract…”  This language was generally taken to mean final completion – that is, after all punch list work is complete and all work has been approved by owner, architect, or both.  Among the purposes of GBL-756-A was so the owner could have some assurance that the contractor would return to the project to complete punch list work, and to secure the owner (to some degree) for defects, costs, and possible back charges that it might have against the contractor at the end of the project.  This owner-driven protection, however, often frustrated many contractors as owners sometimes withheld retainage for an unreasonable amount of time and leveraged it to extract additional work from the contractor without additional payment.

Now, the newly passed modification to GBL §756-A.2 drastically changes the above-quoted statutory language and provides that:

A contractor shall be entitled to submit a final invoice for payment in full upon reaching substantial completion, as such term is defined in the contract or as it is contemplated by the terms of the contract. 

(Emphasis added).

Most people who work in construction and development, including construction law practitioners, commonly recognize “substantial completion” to mean when the property can be used for its intended purpose and that often correlates to when the temporary certificate of occupancy is issued by the governmental agency with authority over such matters.

The language in the newly passed legislation must be taken into consideration during the negotiation and drafting of the construction contract so there is no misunderstanding of the term “substantial completion” and when the contractor is entitled to receive its retainage.

Retainage is Now Limited to 5%

GBL 756-C used to provide permit the parties to agree on a “reasonable amount” of retainage, and what was “reasonable” was often negotiated by the parties but usually landed at 10%.  Not anymore!

As of November 17, 2023, GBL §756-C mandates that “an owner may retain no more than five percent per annum of the contract sum as retainage.”

While the 5% difference between the usual (now unlawful) 10% and the newly legislated 5% maximum retainage may not appear much, the delta becomes more obvious the larger the project.

For owners, it is a loss of a certain level of security and leverage; for contractors, it means more of the contract sum and payment sooner rather than later, which is the stated purpose of the new legislation.

Goetz Fitzpatrick has been practicing law throughout the New York Metropolitan area and The Hamptons, since 1967. The firm has deep expertise in Construction and Real Estate, as well as Corporate, Bankruptcy, Trust & Estates and Labor & Employment. The firm’s office is located at One Penn Plaza, Suite 3100, New York, NY 10119, Telephone 212 695 8100.

Author

Gerard Strain

Gerard S.

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How To Navigate The Approval Process

Gerard StrainBlog Post, Insight

Published in Habitat Magazine November 2023

The building next door is doing exterior repairs or alterations and has requested access to your property.

Here are the steps your board should take before saying yes.

FIRST THINGS FIRST. Ask for the set of architectural and engineering plans. You want to see the extent and complexities of the project. If your neighbor needs to go below your building for excavation work and intends to put in underpinning or tiebacks, you want to know that ahead of time. You also want to see how high up the project extends, whether it’s coming to your lot line and what protections are going to be put in place. And those plans have to be the final ones approved by the Department of Buildings, because they can change at any time.

NEXT STEP. Have your own professionals go over the plans to see how your building will be impacted. As for fees, the general rule of thumb is that the party performing the work pays your engineering, architectural and legal fees. Determining a reasonable fee depends upon the complexity of access requirements, the risks posed by the project and the intricacies of drafting the access agreement with your neighbor.

DON’T FORGET. Projects get stalled all the time, so you want to require that the building doing the work deposit money in an escrow account that can be drawn from as you incur costs. You also need to draw a line in the sand as to when this money will be released. If the project next door gets delayed for a month, a year or whatever, the people on the other side certainly don’t want to write any checks because they’re probably losing money. There are certain terms that can be negotiated for the release, but there should always be money put up in escrow.

Goetz Fitzpatrick has been practicing law throughout the New York Metropolitan area and The Hamptons, since 1967. The firm has deep expertise in Construction and Real Estate, as well as Corporate, Bankruptcy, Trust & Estates and Labor & Employment. The firm’s office is located at One Penn Plaza, Suite 3100, New York, NY 10119, Telephone 212 695 8100.

Author

Gerard Strain

Gerard S.

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Demystifying New York Real Property Law 881: We’ve Got You Covered

Goetz FitzpatrickBlog Post

When it comes to real estate transactions and property rights in the state of New York, there are numerous laws and regulations in place to ensure fair and equitable dealings. Among these, New York Real Property Law 881 stands out as a critical piece of legislation that impacts property owners, developers, contractors, and various stakeholders in the real estate industry. At Goetz Fitzpatrick, we understand the complexities of Real Property Law 881, and we’re here to demystify it for you.

Understanding Real Property Law 881:

Real Property Law 881, often referred to as RPL 881, pertains to access agreements for property. In essence, it addresses the rights and obligations of property owners and those seeking access to their property for construction or repair purposes. Here’s a closer look at some key aspects of this important law:

  1. Access Rights: RPL 881 grants certain rights to parties seeking access to a property for construction, repair, or improvement projects. These rights are contingent upon complying with the law’s provisions and obtaining a court order if necessary.
  2. Court Involvement: One of the distinctive features of RPL 881 is that it provides a legal framework for obtaining court orders to gain access to a property when negotiations between parties break down. This can be crucial in cases where access is vital for a project’s completion.
  3. Due Process: RPL 881 emphasizes due process and fairness. Property owners have the right to be informed and involved in any access agreements, ensuring that their interests and property rights are protected.
  4. Applicability: The law applies not only to property owners but also to those seeking access for various purposes, such as construction companies, utility providers, and government agencies.

Why Goetz Fitzpatrick?

Navigating the complexities of New York Real Property Law 881 requires legal expertise and a deep understanding of the intricacies involved. Here’s why Goetz Fitzpatrick is your trusted partner:

  1. Experience: With decades of experience in real estate law, our team has successfully handled numerous cases involving RPL 881, providing clients with tailored solutions.
  2. Legal Expertise: Our attorneys are well-versed in New York real estate law, ensuring that we stay up-to-date with the latest legal developments and can provide the best possible guidance.
  3. Client-Centered Approach: We prioritize your interests and work diligently to protect your property rights. Your peace of mind is our top priority.
  4. Proven Track Record: Our success stories speak for themselves. We’ve helped countless clients navigate RPL 881 and achieve favorable outcomes.

In the complex world of New York real estate, having a trusted legal partner is essential. At Goetz Fitzpatrick, we’ve got you covered when it comes to understanding and navigating New York Real Property Law 881. Our experience, expertise, and client-centered approach make us the ideal choice for all your real estate legal needs. If you’re facing challenges related to access agreements or property rights, don’t hesitate to reach out. We’re here to demystify the law and protect your interests every step of the way. Your property, your rules – let us help you navigate them effectively.

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Goetz Fitzpatrick has been practicing law throughout the New York Metropolitan area and The Hamptons, since 1967. The firm has deep expertise in Construction and Real Estate, as well as Corporate, Bankruptcy, Trust & Estates and Labor & Employment. The firm’s office is located at One Penn Plaza, Suite 3100, New York, NY 10119, Telephone 212 695 8100.

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Goetz Fitzpatrick



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Seeking Compliance with a Deficient Bill of Particulars: Understanding the Proper Method

Alison Arden BesunderBlog Post, Insight

FOR IMMEDIATE RELEASE
August 1, 2023

Contact:
Alison Arden Besunder
212-695-8100, ext. 289
[email protected]

Benjamin Blum
212-695-8100, ext. 458
[email protected]

Seeking Compliance with a Deficient Bill of Particulars: Understanding the Proper Method

When engaging in legal proceedings, parties often require specific details and information from their opponents to effectively prepare their case. In civil litigation, a bill of particulars serves as a crucial document that outlines the specific facts and details supporting the opposing party’s claims or defenses. However, what can be done when a bill of particulars is deficient or fails to provide the necessary particulars? This blog post discusses how to procure compliance with a deficient bill of particulars.

The Role of CPLR 3126

In New York, the proper mechanism for ensuring compliance with a demand for a bill of particulars is governed by the Civil Practice Law and Rules (CPLR) 3126, per CPLR 3042(d). CPLR 3126 outlines the enforcement measures that can be taken when a party fails to comply with a bill of particulars.

Enforcement Measures

If a party willfully fails to provide the requested particulars in response to a bill of particulars, the court has the authority under CPLR 3126 to issue a final or conditional order as it deems just. This order may include various forms of relief as outlined in Section 3126. Two common forms of relief include:

Striking the non-complying party’s pleading: The court may order the striking of the non-complying party’s pleading, which essentially removes their legal document from consideration. This can be a significant consequence, as it severely hampers the non-complying party’s ability to support their claims or defenses.

Order of preclusion: Another potential relief measure is the issuance of an order of preclusion. This order prevents the non-complying party from introducing certain evidence or making specific arguments related to the deficient bill of particulars. Such an order can substantially limit the non-complying party’s ability to present their case effectively.

Applicability of CPLR 3042(d)

It’s important to note that CPLR 3042(d) does not directly provide for a motion to compel compliance with a deficient bill of particulars, as provided by CPLR 3124. However, based on the language of CPLR 3042(d), it appears that the court does have the discretion to issue an order compelling the non-complying party to provide the requested responses. The court’s authority to do so stems from its powers under CPLR 3126 to make an order “as it deems just.”

When faced with a deficient bill of particulars, seeking compliance requires understanding the proper legal mechanisms. CPLR 3126, in conjunction with CPLR 3042(d), serves as the appropriate framework for ensuring compliance. By utilizing the enforcement measures outlined in CPLR 3126, such as striking the non-complying party’s pleading or issuing an order of preclusion, the court can uphold the integrity of the legal process and ensure that parties have access to the necessary particulars for their case.

Goetz Fitzpatrick has been practicing law throughout the New York Metropolitan area and The Hamptons, since 1967. The firm has deep expertise in Construction and Real Estate, as well as Corporate, Bankruptcy, Trust & Estates and Labor & Employment. The firm’s office is located at One Penn Plaza, Suite 3100, New York, NY 10119, Telephone 212 695 8100.

Author

Alison Arden Besunder

Alison Arden Besunder, Esq. is Chair in the Trusts & Estates Planning and Fiduciary Litigation group at Goetz Fitzpatrick. She has extensive experience and focuses her practice in the areas of Trusts & Estate Planning, Guardianship, Estate Litigation, Commercial Litigation, Elder Law, and Business Succession Planning.

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Author

Benjamin Blum

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Goetz Fitzpatrick Successfully Obtains Recovery for A Subcontractor Despite A Contractual “Pay When Paid” Clause

Benjamin BlumBlog Post

Goetz Fitzpatrick Attorneys Donald J. Carbone, Gary M. Kushner, and Benjamin Blum of Goetz Fitzpatrick LLP had a major victory securing a partial summary judgment award of $954,519.50 plus 3.5 years of pre-judgment interest at 9% per annum on behalf of a subcontractor for the New York City Build It Back Programs.

Goetz Fitzpatrick represented ATANE ENGINEERS, ARCHITECTS AND LAND SURVEYORS, D.P.C., f/k/a HAKS ENGINEERS, ARCHITECTS AND LAND SURVEYORS, P.C (“Atane”), an engineering/surveying firm in connection with nonpayment claims during the Build Build Back Projects.  Atane served as a subcontractor to the City’s prime contractor Camp Dresser McKee & Smith/CDM Smith. During the performance of its work and after completing its work in 2018, Atane continually submitted its invoices to CDM Smith who adopted these invoices and submitted those invoices to the City for payment. Since the outstanding invoices for this project were all owed to subcontractors, CDM Smith/Camp Dresser McKee & Smith had no impetus to seek approval of Atane’s invoices.  Instead, the genius of Atane’s strategy was to go around CDM Smith by working directly with New York City Mayor’s Office of Housing Recovery to obtain the City’s approval of $954,519.50 in Atane invoices.

As a result of Atane’s strategy, Goetz Fitzpatrick filed a motion for partial summary judgment against CDM Smith on behalf of Atane seeking the recovery of these “approved invoices”.  For over four years, CDM Smith refused to pay Atane any portion of its unpaid invoices (whether “approved” by the City or not) based upon a subcontract clause which purported to tie Atane’s rights to receive payment to CDM Smith’s receipt of payments from the City.  As part of Atane’s motion, Goetz Fitzpatrick argued that: 1) this subcontract clause constituted an unenforceable “pay when paid” under New York Law as set forth in the seminal West- Fair Electrical Contractor case and its progeny and 2) CDM Smith’s four year payment delay was unreasonable in any event, which would prevent CDM Smith from using this clause to avoid its payment obligations to Atane.

Although CDM Smith attempted to claim that it was not obligated to pay Atane because: 1) CDM Smith contended that its subcontract clause wasn’t an illegal “pay when paid” clause and 2) Atane had filed a public improvement lien against the project funds, the Court wholeheartedly rejected these arguments.  In fact, the Court, in rendering its decision at oral argument found that the four-year delay in payment was unreasonable, that CDM Smith could not avoid its payment obligations because it was not paid by the City. Notably, the Court went as far to say “[T]he clause as applied is unenforceable …there is no excuse”.

Also, the Court granted Atane’s request for pre-judgment interest to begin accruing in June 2019 (when the lawsuit was started) at the legal rate of 9% per annum because the invoices underlying Atane’s nonpayment claims had been submitted on a rolling basis from 2016 through 2019.

The bottom line is that a general contractor cannot avoid paying a subcontractor for over four years by resorting to a flow-down clause which purports to permit the general contractor to wait to pay its subcontractors until it receives payment from an upstream party.

Goetz Fitzpatrick has been practicing law throughout the New York Metropolitan area and The Hamptons, since 1967. The firm has deep expertise in Construction and Real Estate, as well as Corporate, Bankruptcy, Trust & Estates and Labor & Employment. The firm’s office is located at One Penn Plaza, Suite 3100, New York, NY 10119, Telephone 212 695 8100.

Author

Benjamin Blum

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