Legal Question in Construction Law in New York

Re: Contesting a lien

A lien on a cooperative is a little different than a lien on a homeowner. A mechanic's lien for improvements to cooperative apartment is enforceable against cooperative building owner only where latter has affirmatively consented to work authorized by tenant-shareholder. Newman v. Valmar Elec. Co., 2005, 9 Misc.3d 450, 801 N.Y.S.2d 731. If the cooperative did not affirmatively consent to work performed by the terrible contractor, the lien would be a nullity.

However, if the contractor did file a lien against the coop, he would have to serve notice of lien on both you and the cooperative. Normally, under a proprietary lease agreement you would have the duty to discharge the lien by filing a bond. It is not as difficult as you would think.

You are correct that you may demand information to particularize the lien. Failure to particularize the lien upon proper demand gives grounds to file a motion to vacate the lien.

What I would do is send a certified letter to the contractor firing the contractor. The letter should set forth the reasons why the contractor is being released.

I would then immediately retain another contractor to repair the damage and complete the job. The difference in price are you damages which are actionable against the contractor. You would then have the decision of suing the contractor for damages or, if the contractor commenced an action against you, counterclaiming the contractor for damages.

Mike.

Re: Contesting a lien

I sympathize with your situation. The construction industry has its fair share of incompetent and fiscally-irresponsible contractors. I deal with them on a daily basis.

There is no simple "answer" to your inquiry. You have a number of remedies available which a skilled construction litigator can walk you through.

The one thing I can tell you is that there is nothing you can do to prevent the contractor from filing/serving a Mechanic's Lien. The mechanic's lien itself is generally somewhat harmless as it is difficult and expensive for a contractor to foreclose on a mechanic's lien.

The problem for you, however, is that the mechanic's lien is filed against the entire building, not just your apartment. Once the lien is filed, you will be required by your co-op board to resolve/remove the lien or they will almost definitely litigate against you.

I highly recommend that you promptly speak to an attorney to address the problem before your proprietary lease is at risk.