Legal Question in Construction Law in New York
Mechanics Lien
Hello:
I was in the process of building a spec house with a local contractor. He put a mechanics lien on the house the day after he submitted his final invoice. His contract also stipulates arbitration. It has been 4 months and still no progress. My house is half built and is getting destroyed by the elements. Can I continue construction even though the lien has not been lifted yet?
2 Answers from Attorneys
Re: Mechanics Lien
Not only should you finish construction, you must finish construction since you have a legal duty to mitigate damages.
If there is an arbitration clause, you also have the right to request arbitration. The damage would be the cost to complete the construction on the house.
Mike.
Re: Mechanics Lien
The lien placed on your house will have no effect on your right to continue construction on the home. You as the owner have a right to continue construction and may even have a duty to mitigate your damages from the elements.
As to the arbitration clause, it is difficult to say whether ot not you will have to arbitrate a dispute with the contractor without seeing the actual clause. You may also be able to waive the clause, if the contractor agrees.
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