Apollo H.V.A.C. Corporation Brings “Quantum Meruit” Claim Against Pav-Lak Construction, Inc.
January 7, 2021, Eastern District of New York – Trustee Allan B. Mendelsohn brought a “quantum meruit” claim of $2,129,420.51 against Defendant Pav-Lak Construction, Inc for work, labor, and services provided to Debtor.
Debtor, Apollo H.V.A.C. Corporation, operated as a successful heating ventilation and air conditioning company. The Debtor allegedly entered into a contract with the Defendant whereby the Debtor agreed to provide all labor and materials necessary to perform heating, ventilation, and air conditioning work for various projects. As per the compliant, Pav-Lak received the benefit of the Debtor’s labor and materials, but “failed to pay the balances due to the Debtor, despite repeated reminders.”
The Trustee brought a 12-count complaint to direct the “turnover of property” of the estate of the Debtor in the possession, custody, or control of Pav-Lak Construction, Inc. The Trustee alleges that while Pav-Lak clearly “benefitted” from the work performed by the Debtor, the “Debtor’s estate was damaged as it failed to receive fair consideration for the services provided.” Since the work received by the Debtor had a value of $2,129,419.80, the Trustee argues that Defendant “should be compelled” to compensate the estate for the work received.
The case is In re Apollo H.V.A.C. Corporation in Eastern District of New York, AP No. : 20 -08241. Judge Alan S. Trust is presiding over the bankruptcy case.