In Select Construction Corp. v. 502 Old Country Road, LLC, 11 Misc 3d 1078[A], 819 N.Y.S.2d 851, 2006 NY Slip Op 50609[U], 2006 WL 948127 (Sup. Ct. Nassau County 2006), the defendant retained plaintiff as general contractor to construct a building that was to be used for Patio.com.
Disputes arose and when the plaintiff received reports that defendant was critical of work being done by certain subcontractors, defendant stopped paying these subcontractors.
Plaintiff eventually was terminated and sued defendant-owner seeking to recover payment for its work, lost profits and other damages; the owner counterclaimed for Lien Law violations.
The Supreme Court, Nassau County, dismissed these counterclaims on the ground that, because the owner was not a beneficiary of the Lien Law, it lacked standing to maintain them.