South Carolina Steel v. Miller and Nationwide Steel

In South Carolina Steel v. Miller and Nationwide Steel, 170 A.D.2d 592 (2d Dept. 1991) the Court held: "Lien Law [A]rticle 3-A was designed and enacted to create trust funds out of certain construction payments and thus ensure, or at least make more certain, that those whose skill, labor, and materials create an improvement are paid for their services . The Lien Law provisions which create a statutory trust do not, however, preclude an unpaid contractor from pursuing recovery under the parties' contract. Rather, the statutory trust provisions are intended to provide aggrieved subcontractors or materialmen with additional remedies by enabling them to recover diverted trust funds from third parties who are not in privity with the parties to the contract."