Kiritsis & Associates

 

The legal process of discharging mechanic's liens in New York.

Jul 30, 2021

Kiritsis Law Group 212 922 0005

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

 

It is important to note that the discussion herein is a super generalized and extremely synopsized summary of a highly technical topic area of an already highly complex area of the law.

 

There are many avenues one may take to have their lien discharged. Lien Law Section 19 states a lien can be discharged by the following:

 

—Submission of a certification by the lienor stating that the lien has been satisfied or has been released (often labeled as Filing of a Satisfaction or Release of Lien).

 

—A court order stating the lienor’s failure and neglect to prosecute the lien (i.e. Motion for an order due to Discharge Lien due to lienor’s Failure to Timely Commence a Lien Foreclosure Action and File a Notice of Pendency pursuant to Lien Law Section 59;) Note:  This is sometimes called judicial discharge, but perhaps it may be better named as judicially sought discharge.

 

—Filing of a bond or undertaking with the county clerk in the amount equal to 110% of the lien.

 

—By filing with the county clerk a transcript of judgment with proof of service of notice of entry, showing a final determination of the action in favor of the owner.

 

—By deposit of the amount of the lien, plus interest with the county clerk.

 

—Or by obtaining a court order summarily discharging of record of alleged lien because the claimant does not have a valid 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 State Constitution

U.S. Constitution

New York State Bar Association

New York City Bar Association

New York State Court of Appeals

New York Court of Claims

New York Appellate Division Court

New York Appellate Term Court

New York Supreme Court

New York Real Property Law

Warren's NY Real Property Law

NYS Lien Laws

Section 43 New York State Lien Law

RPAPL

CPLR

New York General Obligations Law

New York City Department of Finance

Lien Law Section 3

Lien Law Section 5

New York State Appellate Departments

Lien Law Section 2.03

Real Property Law Section 339

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 900

Section 22 New York Affidavit Form

Monroe 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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Drafting of Construction Contracts

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Project documentation issues in construction 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

Default provisions in New York City construction project contracts

ADR provision in 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

 

Law Offices of Kiritsis & Associates 

Phone # 212 922 0005

Manhattan Office (Main Office):

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New York, NY 10017

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