On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Mechanic's Liens on Feb 7, 2013.
A prior holding by the Supreme Court of New Jersey in Craft v. Stevenson Lumber Yard, Inc., declared that a construction lien claimant has a “statutory duty” under the Construction Lien Law “to allocate payments to the accounts from which they were derived”. In other words, contractors, subcontractors, and suppliers are not permitted apply payments originating from an owner on one project to another project to do things like pay off older debt. The Appellate Division’s recent decision in L&W Supply Corp. v. Joe DeSilva enlarges that obligation to one of inquiry based on reasonable suspicion.