5 Beekman Property Owner, LLC v. Henick-Lane, Inc.: Owner Ordered to Return $850,000 Insurer Paid on a Settlement That Never Closed
On October 6, 2026, New York's Appellate Division, First Department unanimously affirmed an $850,000 judgment, plus prejudgment interest, requiring 5 Beekman Property Owner, LLC and Broadway Construction Group, LLC to return money that HVAC contractor Henick-Lane, Inc.'s insurer paid them under the mistaken belief that their defective-HVAC suit had settled. The court also upheld a civil contempt finding against the plaintiffs for failing to turn the money over.
Why it matters
Owners and general contractors pursuing construction-defect claims cannot keep insurer money paid on a settlement that was never finalized, and refusing a court order to return it can bring contempt. The decision also shows that a check marked as a settlement payment is enough of a reservation to defeat the voluntary payment doctrine, protecting contractors and their carriers from overpayment during negotiations.
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Case timeline · 4 entries Latest: October 6, 2026 — Appellate Division, First Department unanimously affirms judgment and contempt order
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