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My question is about escrow in NY

Im a tile subcontractor for a larger corp we have not worked for them over 12 months at this point. We are told after 12 months they will release our escrow ck that was 3/29/19 so technically due today .I just want to know the legality in what they owe as far as interest for last 12 months plus what the legality for them to have to pay at this point in NY How should I Proceed ? Im sending a letter of intent for retainage too. any other advice would be great. To be clear this company held 5-10% each job for 4 years this is what I’m looking to collect. Thanks

1 reply

Apr 13, 2020

If the project has long been completed, there might not be many different options for recovering retainage. Generally, when years have gone by, filing a lawsuit is the best way to force a customer to pay what's owed. Though, sending a payment demand letter - potentially through your attorney - could be useful for forcing payment first. Further, if funds are being held in escrow, your customer should have generally provided you with some insight into how and when the funds will be released from escrow. So, contacting the customer and the escrow company should be useful for figuring out the next official steps for collecting payment. Finally, keep in mind that there's a deadline for filing a lawsuit, too. It looks like the deadline for collecting on a debt in New York is generally 6 years - and, after that 6 years passes, you might not be able to pursue legal claims to make sure you get paid. So, if a debt is dragging on for years, it might be time to hire a New York construction attorney to help you recover that debt.

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