Kiritsis & Associates

 

Understanding the purpose behind the current laws and regulations governing mechanic liens in New York.

Jul 30, 2021

Kiritsis Law Group 212 922 0005

By John Kiritsis, Esq., CPA, MBA, MS, JD, LL.M

 

Before the rise of mechanic's lien law, there were perceived abuses and injustices, with regards to real property owners and developers, in essence stiffing construction professionals when it came time to pay the applicable bills.

 

The purpose of mechanic’s liens are to protect those who may not otherwise have had any direct and/or contractual relations to the owner of real estate, from being unpaid for labor, materials, or other services rendered. This may extend to include subcontractors or material suppliers, who contract through a third party general contractor or construction manager. A mechanic’s lien dictates that regardless of whether or not a legal relation to the owner of improved real estate exists, any entity that performed labor or supplied material for construction or improvements, may have the right to file a mechanic’s lien.

 

After reviewing hundred of New York and New Jersey construction contracts , by far and away, one of the more common mistakes made with regards to preparing a construction contract, is lack of fundamental understanding of the laws surrounding mechanic's liens, as well as, failure to appreciate their possible legal effect on real property and projects.

 

The views expressed by this author is not legally binding nor reflective of the author per se, the author's firm, the author's employers, the author's employees or any individual and/or organization.

 

Sources and potentially useful references:

New York Constitution

U.S. Constitution

New York State Bar Association

New York City Bar AsYS Lien Laws

Section 43 New York State Lien Law

RPAPL

CPLR

New York General Obligations Law

New York City Dew York State Appellate Departments

Lien La

Lien Law Section 9 (NYS)

Lien Law Section 10 (NYS)

Section 11 of New York Lien Law

Lien Law Sections 34, 39 & 59

Robert P Frink v Dudley Bierau et al, 212 NYS2d 869

Section 13 of New York Lien Law

Leonard Engineering, Inc. v. Zephyr Petroleum Corporation, 522 NYS 2d 90

Section 22Monroe Sav. Bank v. First Nat'l Bank 50 App Div2d 314 -- 4th Dept 1976

Nanuet Nat'l Bank v. Ackerson Terrace, Inc. 417 N.Y. S. 2d 901

HNC Realty Co. V. Golan Heights Developers, 360 NYS2d 954

Aspro Mechanical Contracting, Inc. v. Fleet Bank, N.A. (Circa 2004)

Byrd Underground, LLC v. Anguar, LLC (332 P3d 273 Nev Adv Op 62)

Kiritsis Law Group

 

Our law firm provides comprehensive legal service solutions in the practice area of

construction law.  Below is a partial list of services that our law firm may be able to

assist you with regards to your construction law needs:

 

Construction Law Contracts

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Differing site conditions and delay provisions in NYC construction contracts

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Employment Issue resolution services for the construction industry

Collective Bargaining Agreement for the construction industry

Environmental issues provisions for construction contracts in New York City

Creditor-debtor issues in construction law

Construction Law OSHA type violations

Key provisions in New York City construction contracts

Assignment provisions in construction contracts

Breach of contract provisions in construction contracts

Cancellation address issues in NYC construction issues

Commercial General Liability Insurance Coverage Provisions in Construction Contracts

Completion Date clauses in NYC construction contracts

Contract price provisions in NYC construction contracts

Down payment construction contract provisions and clauses

Overview of New York City construction contracts

Payment to Contractors clauses in construction project contract agreements 

Sign & Stamp; Date provisions in construction contracts

The dos and don’ts regarding the signing instructions of a construction contract

Right to cancel provision in construction contracts

Warranties provisions in construction contracts

Workers compensation insurance coverage provisions regarding construction contracts

under New York Laws

Construction contract clauses regarding work product ownership

 

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