Paying After a Mechanic’s Lien Is Filed: An Owner’s Risk

Reviewed September 7, 2026.

Payment to the contractor after a mechanic’s lien attaches does not necessarily eliminate the owner’s exposure to that lien. Payment timing and the statutory protections must be reviewed before money is released.

In M & V Concrete Contracting Corp. v. Modica, 76 A.D.3d 614 (2010), the owner had eventually paid the construction manager in full. But final payment occurred well after the claimant filed its lien, so the court declined to discharge the lien on a no-funds theory. Separately, the owner was entitled to contractual indemnification from the construction manager under their agreement.

Coordinate payment, security and releases

Before paying, identify the liens, service and notice dates, unpaid contract balance, relevant tiers and competing claims. Review Lien Law § 4 and any applicable payment defenses. An escrow arrangement, properly documented joint payment, negotiated release or discharge bond may help address a particular dispute, but each must be structured for the actual claims and parties.

A lien discharge bond substitutes security and can free the property from the lien when statutory requirements are met. It does not itself decide who owes the debt or erase the underlying claim. Likewise, a right to indemnification is distinct from successfully defending the lien and depends on the indemnitor’s obligations and ability to pay.

Kushnick Pallaci PLLC assists clients throughout New York with mechanic’s lien enforcement and defense. Contact 631-752-7100 or vtp@kushnicklaw.com.

Attorney Advertising. General information, not legal advice.