Date
October 6, 2026
Added to tracker
October 13, 2026
Court or forum
New York Supreme Court, Appellate Division, First Department
State
New York
Presiding judge
Andrew Borrok
Amount / scale
$850,000 judgment plus prejudgment interest
Parties
Plaintiff-Appellant (Owner): 5 Beekman Property Owner, LLCPlaintiff-Appellant: Broadway Construction Group, LLCDefendant-Respondent (HVAC Contractor): Henick-Lane, Inc.

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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The underlying case, filed in New York County Supreme Court under Index No. 657290/19, concerns an HVAC system that Henick-Lane, Inc. installed at property owned by 5 Beekman Property Owner, LLC. The owner and Broadway Construction Group, LLC allege the system leaked, damaging the owner's property and forcing them to spend money containing the damage, and they sued for breach of contract. Henick-Lane counterclaimed for nonpayment and to foreclose a mechanic's lien. Those claims remain pending.

Case timeline · 4 entries Latest: October 6, 2026 — Appellate Division, First Department unanimously affirms judgment and contempt order

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