Legal Question in Construction Law in New York
bad lien?
I hired a GC to do a lot of work. He did not fully pay one of his subs. The sub put a lien on my house listing me as his direct employer, not the GC which was his actual employer. I had no contract of any kind with the sub and had no dealings with him at all. I also have a written contract with the GC for all the work the sub did. I know that a sub has fewer lien rights than a GC, which may be why he placed the lien this way. Since the lien improperly lists the sub as a direct contractor, does this in any way invalidate the lien, or is it merely an irrelevant technicality? Also, are his actions in any way illegal or even criminal?
1 Answer from Attorneys
Re: bad lien?
Yes, there is a way to get the lien canceled "summarily." However, the steps in the process, in the hands of someone who understands it well, do not start with coming into court to have the lien cancelled. No, the first step in a case like this is Section 38 of the Lien Law. If the required statement is not served, you can have the lien cancelled. If he serves a truthful statement, you can have the lien cancelled because he will have to admit he is a subcontractor, not a direct contractor. If he perjures himself in his statement, a trial will be necessary.
You need to engage counsel, both to invoke Section 38 and to handle the follow-up process.
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