When a subcontractor files a mechanic’s lien against a property, pursuant to Lien Law Section 19(6), the owner or any other party in interest (i.e., a general contractor), may apply for an order summarily discharging of record the alleged lien. In conjunction with the Lien Law, CPLR 402 states that…
New York Commercial and Construction Lawyer Blog
Indemnification Claim Dismissed Based on “The Work Itself” Exclusion in Construction Contract
Construction contracts typically contain clauses whereby the contractor agrees to indemnify and hold harmless the owner or design professional in the event the contractor’s negligence results in a personal injury or property damage action commenced by a non-party to the contract between the owner and contractor. Similar risk shifting generally…
Executive Order Tolling the Statute of Limitations Cannot Serve to Revive a Mechanic’s Lien That Was Not Timely Renewed
It is often stated that the Lien Law is to be “liberally construed” so as to protect the rights of the contractors and workers who are the beneficiaries of the statutory scheme. However, certain rules are strictly enforced by the courts, and a failure to follow the strictures of aspects…
The Difficulties in Reducing The Value of a Mechanic’s Lien
Owner have limited rights to summarily remove a mechanic’s lien of record. Typically, Owners achieve this result by posting a surety bond with the County Clerk where the lien was filed. Owners can also summarily remove a mechanic’s lien if it contains a facial defect such as listing the wrong…
Continuous Treatment Doctrine Applied To Sustain a Claim Against Architect
There is a three year statute of limitations for malpractice claims against architects and other design professionals. These claims generally begin to accrue upon the completion of the work in issue. However, a cause of action against a design professional may be tolled based upon the “continuous treatment” doctrine if…
When Is an Arbitration Award Final?
In American International Specialty Lines Insurance Company v. Allied Capital Corporation the New York Court of Appeals wrestles with a simple yet significant question: When is an arbitration award truly final such that it may not be altered? 2020 N.Y. Slip Op. 02529 (2020). The matter arose out of dispute…
Due Process at Risk in Arbitration Proceedings
The Appellate Division, Second Department, has handed down an opinion telling a cautionary tale to would-be parties who are considering contracts containing broad arbitration agreements. Litigants in court have the right to rely on a broad array of rights under the Constitutionally protected right to “due process.” In Matter of…
NYCHA Construction Contracts Are Traps For The Unwary
Public owners often utilize notice of claims and contractual notices to bar otherwise valid claims for relief. The New York City Housing Authority (“NYCHA”)is no different, and requires any potential claimant to be especially vigilant in preserving rights to monetary damages. The First Department recently upheld NYCHA’s assertion of these…
Flanking the Corporate Shield of a Home Improvement Contractor
A recent decision handed down by the Suffolk County Supreme Court (Hon. Sanford Neil Berland, J.) in the matter of Sweeney v. Waitz and Artisan Builders of the North Fork, Inc. (66 Misc.3d 384) reminds us of the rights and risks that homeowners and home improvement contractors must confront when…
Damages for Willfully Exaggerated Mechanic’s Liens Unavailable for Mechanic’s Liens that Are Prohibited by Enforceable Agreements
The Second Department recently found, in Degraw Construction Group, Inc. v. McGowan Builders, Inc., 178 A.D.3d 770, 114 N.Y.S.3d 395 (2d Dep’t 2019), that a lienor cannot be held liable for willfully exaggerating a mechanic’s lien if the mechanic’s lien is impermissible in the first place. DeGraw confirms that Lien…