Tuesday, November 20, 2012

Foreclosure of assigned mechanic's lien does not require assignment of underlying agreement

Hello folks and Happy Thanksgiving to everyone.  The blog has been quiet for a couple of weeks as I have attended to my law practice but the Courts were active on the mechanic's lien front in November.  In 67 Liberty LLC v. 67 Liberty Street Assoc. LLC the First Department was faced with the issue of whether the holder of an assigned mechanic's lien could foreclose on that mechanic's lien without holding assignment of the underlying contract from which the debt arose.  The Court found that the assignee was permitted to foreclose upon the mechanic's lien noting that the New York Lien Law specifically enabled laborers to assign enforceable debts that have been filed as liens.

Vincent T. Pallaci is a partner at the New York law firm of Kushnick | Pallaci PLLC.  With offices in Long Island and Buffalo, New York, Kushnick | Pallaci, PLLC provides legal services to the construction industry across the State of New York.

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