Legal Question in Construction Law in New York

Re: how does us law view ''back to back'' contract

Subject to a review of the contract documents and possible requirements for additional information, I might be able to render an opinion that what you say is correct. What you say is true as a general proposition, but the devil, as always, is in the details. Bear in mind that in the absence of federal subject matter (and construction law is governed by local, not federal, law unless the United States is a party to the contract) the law in the US varies (sometimes dramatically) between the states. I am qualified to testify as an expert only with respect to the laws of New York and New Mexico and the federal laws of the United States.

I am a published author on a number of issues in construction law and I am confident that I would qualify as an expert in a New York Court on the construction law. Whether an Israeli court would qualify me as an expert is something that is beyond my competence.

The crux of my opinion would be that the proceeds of the prime contract in the contractor's hands would be impressed with a trust, obligating the contractor to remit those proceeds to the subcontractor until the entire subcontract sum has been paid. Under certain circumstances, the contractor can have broader duties than the owner would have, especially with respect to insurance proceeds and especially if the "subcontractor exception" is present in the insurance documents.

Feel free to contact me directly if you with to explore this further.