March 22, 2012 3:30 PM | Posted by Admin
I was asked to review a recent case from New Jersey captioned “ Vollers Excavating and Construction, Inc. v. Citizens Bank of Pennsylvania
(March 5, 2012). It appears to stand for the proposition that a bank is not liable to a subcontractor on a job where the construction borrower of the bank, a general contractor, filed for bankruptcy leaving the subcontractor without a remedy. After reviewing the case, the loan documentation clearly indicated the loan proceeds would not be subject to the claims of any subcontractor.