3-G Servs. Ltd. v. SAP V/Atlas 845 WEA Assoc. NF L.L.C.
Docket: 6850 650583/13
Court: Appellate Division of the Supreme Court of the State of New York; June 12, 2018; New York; State Appellate Court
Original Court Document: View Document
In the case of 3-G Services Limited v. SAP V/Atlas 845 WEA Associates NF L.L.C., the Appellate Division, First Department, affirmed the Supreme Court's order granting summary judgment in favor of SAP, dismissing the plaintiff's first cause of action for foreclosure on a mechanic's lien. The court found that SAP demonstrated it did not owe any money to the general contractor at the time the lien was filed, and the plaintiff failed to present any factual disputes in opposition. The court rejected the plaintiff's argument that SAP's final payment to the general contractor was invalid, determining it was a valid payment made when due, coinciding with SAP's termination of the contract for convenience. The plaintiff's claim that SAP's knowledge of the general contractor's debt to the plaintiff constituted bad faith was found insufficient. Furthermore, the choice of termination for convenience rather than for cause did not indicate bad faith, as SAP had the discretion to terminate on either ground. The appellate court distinguished the case from those cited by the plaintiff, noting that previous cases involved advance payments made before they were due, accompanied by clearer evidence of bad faith. The court concluded that the decision supported the legality of SAP's payment and termination actions.