Alpha Interiors, Inc. v. Tulger Construction Corp.
Alpha Interiors, a subcontractor, sued Tulger Construction, the general contractor, for breach of contract and unpaid sums on a construction project. Tulger argued Alpha breached the contract by violating Labor Law § 220, specifically by forcing workers to kick back portions of their supplements. The Supreme Court initially denied Tulger's motion for summary judgment. However, the appellate court reversed this decision, finding that Alpha's admitted illegal conduct was central to its performance and thus precluded recovery on the contract due to public policy. The appellate court affirmed the denial of sanctions against Alpha.