New York Mechanic's Lien

How to Defend a Mechanics Lien Foreclosure in New York

By Kushnick Pallaci PLLC | www.nyconstructionlaw.com

Introduction

Mechanics liens are powerful tools for contractors, subcontractors, and suppliers seeking payment for labor or materials provided to a construction project. But when a lien foreclosure action is filed, property owners, developers, or general contractors must act quickly and strategically to defend against the claim. At Kushnick Pallaci PLLC, we represent defendants across New York facing lien foreclosure actions—protecting their rights, property, and financial interests.

What Is a Mechanics Lien Foreclosure?

A mechanics lien foreclosure is a lawsuit filed by a lienor (usually a contractor or subcontractor) to enforce a filed lien against real property. It operates similarly to a mortgage foreclosure and seeks a judgment directing the sale of the property to satisfy the claimed debt.

In New York, once a lien is filed, the lienor must commence an action to foreclose within one year of the lien filing (Lien Law § 17). Failure to do so may render the lien void.

Common Defenses to Lien Foreclosure Claims

If you're named as a defendant in a lien foreclosure action, several legal defenses may apply. These include:

1. Improper Service or Filing Defects

If the lien was not properly served, filed outside the statutory deadline, or contained material errors (e.g., wrong owner or amount), the lien may be dismissed outright.

2. No Contractual Relationship

In many cases, especially with subcontractors, there is no direct contract with the property owner. Without privity, a lien claim may be improper if certain statutory conditions are not met.

3. Overstated or Exaggerated Liens

If the lien amount is intentionally exaggerated, the claim can be dismissed, and the lienor may face damages or penalties (Lien Law § 39).

4. Work Not Performed or Defective

A lien can only be enforced for valid and properly performed work. If the plaintiff failed to complete the job or performed substandard work, the court may deny the foreclosure.

Lien Law § 17: The One-Year Deadline

One of the most effective defenses is the expiration of the lien under Lien Law § 17. If the plaintiff fails to foreclose within one year of filing the lien—and fails to file an extension—the lien is invalid.

A timely motion to dismiss based on expiration can end the case early and preserve your rights as the property owner or general contractor.

Defending the Property Owner vs. General Contractor

Property Owners are often brought into these suits even when they had no direct relationship with the subcontractor. In such cases, we argue lack of privity and defend against trust fund or unjust enrichment claims.
General Contractors may be exposed to lien foreclosure if they failed to pay a subcontractor—but they also have defenses based on payment disputes, lien waivers, or owner non-payment.

Each role has unique rights and defenses under New York Lien Law.

Litigation Tactics & Practical Strategy

At Kushnick Pallaci PLLC, we approach each lien foreclosure case with a tailored litigation plan:

Early motion practice to dismiss defective liens
Aggressive discovery demands to uncover inflated or unsupported charges
Assertive counterclaims when appropriate (e.g., for breach of contract or delay damages)
Negotiation and settlement when resolution is more efficient than litigation

We also advise clients on how to avoid liens in the future—by using clear written contracts, lien waivers, and prompt payment mechanisms.

Conclusion: Don’t Wait to Act

If you’ve been served in a lien foreclosure lawsuit, the clock is ticking. Failing to respond can lead to default judgment and potential loss of equity in your property.

Let Kushnick Pallaci PLLC defend your rights with experienced, construction-focused litigation. We’ve represented owners, contractors, and developers across New York City, Long Island, and the Hudson Valley in all aspects of lien law and construction disputes.

📞 Call Today: (631) 752-7100
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📧 Email: vtp@kushnicklaw.com