Triple Cities Construction Co. v. Maryland Casualty Co. (4 N.Y.2d 443, 1958)

Fuld, J.

The plaintiff, maintaining that defendant Maryland Casualty Company had lulled it into inactivity to induce it to continue settlement negotiations until its lien had expired, asserted an estoppel against the defendant. The jury returned a verdict for the plaintiff, but the Appellate Division reversed the judgment and dismissed the complaint. We are called upon simply to determine whether sufficient evidence was presented to justify a finding of estoppel.

Dan-Bar Contracting Co., Inc., had an agreement, as general contractor, with the State of New York for the construction of certain public highways. The defendant had executed and delivered to the State of New York a bond guaranteeing Dan-Bar’s prompt payment of moneys due to persons supplying labor and materials in carrying out the contract. The plaintiff was such a subcontractor. In September of 1953, it filed a lien with the State Comptroller and the Department of Public Works for more than $60,000, the balance allegedly due from Dan-Bar. Such a lien, the Lien Law (§18) provides, remains valid and effective for six months unless an action is commenced to foreclose the lien within that time or an order is made by the court continuing and extending it.

Two weeks after filing the lien, actually worthless because of other liens and a prior assignment by Dan-Bar, far in excess of the amount due Dan-Bar from the State, plaintiff’s attorneys wrote to Maryland referring to its bond and informing it of Dan-Bar’s indebtedness. Some time later, the attorneys sent a letter to Dan-Bar, despatching a, copy to Maryland, advising of the sum due their client and