Legal Question in Construction Law in New York

Re: lien

Be careful when filing mechanic's liens. Do not overstate the amount of the lien. Set forth the true amounts for those items on the form. You may very well be entitled to additional amounts such as damages sustained as a result of the customer's delay etc.; but do not include those amounts on the mech lien.

Commencing a foreclosure action is like commencing any other litigation. Your complaint may include a breach of contract action in addition to the foreclosure action. The foreclosure action would seek damages for those amounta set forth in the mech. lien and the breach of contract cause of action would include the amount sought in the mech. lien plus all other damages sustained. In some instances a breach of contract action could seek 3 to 4 times the amount sought in the mechanic's lien.

Be prepared to have the customer counterclaim against you. The customer will claim that you did not complete all the work or that some of your work was substandard.

As you can see, this could result in full blown litigation that could take years.

THIS RESPONSE IN NO WAY SHOULD BE CONSIDERED ADVICE GIVEN PURSUANT TO AN ATTORNEY CLIENT RELATIONSHIP.

Re: lien

Mechanics liens are one of my specialities. This post is going to get technical, but I hope it's understandable.

There are some rules that you should mind. The rules are technical and often lethal to your lien rights.

The lien has to be filed within 4 months after you last did work under the contract.

The notice of lien has to be served on the owner within 30 days after filing and an affidavit of the service has to be filed within essentially the same time period. {If I were being paid for this, I would look it up, but the essential rule is to serve and file within 30 days to avoid timeliness questions.}

The lien is good for one year. ***YOU CANNOT RENEW/EXTEND A LIEN ON A RESIDENTIAL PROJECT (1-4 family dwelling) BY FILING A NOTICE; YOU NEED A COURT ORDER.*** (In a commercial project, the lien is good for 8 months and can be extended for one year (and only one year) by just filing a notice to that effect. Costs $50 or so to do it yourself.)

The cost of getting a court order (say, $1500 and up) is one of the reasons why, in a residential project, you file the lien and "immediately" start the foreclosure. Starting the foreclosure keeps the lien alive for three years.

Lien foreclosure is a technical proceeding and I suggest you consult with an attorney regarding whether and how a case like this can be handled cost-effectively.

Feel free to contact me directly if you would like to discuss this further.

This message is not legal advice and does not create an attorney-client relationship. It's a post on a Bulletin-board system, not a legal opinion. Feel free to contact me regarding my terms of engagement. REMEMBER, FREE LEGAL ADVICE REALLY IS WORTH WHAT YOU PAY FOR IT.