NYU Hospitals Center v. HRH Construction LLC (In re HRH Construction LLC)
NYU Hospitals Center appealed a Bankruptcy Court ruling in favor of HRH Construction LLC and Curtis Partition Corporation concerning a construction contract dispute for a radiology center renovation. NYU alleged HRH breached the contract by failing to proceed with Phase 2, while HRH claimed NYU obstructed its performance by contacting a replacement contractor and failing to make timely payments. The District Court affirmed the Bankruptcy Court's findings that NYU breached the contract and its awards for damages to HRH and Curtis. However, the District Court vacated the Bankruptcy Court's holding that NYU held monies due to Curtis in trust under New York Lien Law Article 3-A, concluding no trust funds were established. All other claims by NYU against Curtis, including willful exaggeration of lien and indemnification, were denied.