Tuesday, April 2, 2013

Can a material supplier file a mechanic's lien in New York?

Can a material supplier file a mechanic's lien in New York?  The question seems simple.  The answer is equally simple, but, then again, we are talking about New York's Lien Law;  so the answer really is not so simple.  First, let's look at a private project.  A material supplier to a general contractor, a subcontractor or a sub-subcontractor may file a mechanic's lien.  A supplier to a materialman may never file a private improvement mechanic's lien.  As a general rule of thumb, if the entity that you supplied materials to only provided materials to the project, but no labor, that entity is probably a materialman making you a supplier to a materialman with no lien rights.  Anyone lower in the tier than the supplier to the sub-subcontractor has some other issues to look at that are beyond the scope of this blog.  Arguably, the supplier to a sub-subcontractor and anyone below it is too far removed for a mechanic's lien upon a private improvement.  But the law there is not clear so we'll leave that topic for another day.

Second, let's look at the public improvement lien.  A material supplier to a general contractor or a subcontractor may file a mechanic's lien on account of a public improvement in New York.  Like private improvement liens, a supplier to a materialman may never file a mechanic's lien on account of a public improvement.  The tier limit issues that are in flux  and unresolved on a private improvement lien are well settled on a public improvement lien.  On a public improvement lien, a material supplier to a sub-subcontractor, and those lower in tier, has no lien rights in New York.

Vincent T. Pallaci is a partner with the New York law firm of Kushnick | Pallaci, PLLC where his practice concentrates on construction law.

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