Reviewed September 7, 2026.
After a mechanic’s lien on a New York project is bonded, confirm that the bond was properly filed and served and that the lien has been discharged from the property. The bond substitutes security; it does not itself settle or extinguish the payment dispute.
Keep the bond and lien records together
Retain the original lien, proof of service, filed undertaking, surety authority documents, indemnity agreement, collateral records and any court orders. Identify who posted the bond, who must defend the surety, and which premiums or other charges may continue. Request the surety’s written requirements for releasing collateral.
Do not assume the clock restarted
A private-improvement lien generally lasts one year from its original filing unless timely continued or enforced under Lien Law § 17. The statute’s continuation rules also apply to liens discharged by deposit or undertaking. Bonding does not create a new one-year period. Single-family liens require a court order for extension; other liens have their own extension requirements. For a lien discharged by deposit or order, § 17 provides that a notice of pendency shall not be filed.
Check the actual docket, any extensions, court orders and pending proceedings before concluding that a lien expired. Do not rely solely on the original filing anniversary or expect automatic return of collateral. The surety may require a release, court order or other satisfactory proof under its agreement.
Evaluate a challenge or demand
A private lien with a qualifying facial defect or untimely filing may be challenged under § 19(6). A factual dispute about what is owed usually cannot be resolved through that limited summary procedure. Counsel should choose the appropriate action or defense and assess any related contract claims.
A party with standing may use § 59 to demand timely enforcement of a private lien or seek cancellation of a discharge bond. The notice must give at least 30 days from service and satisfy the statute’s service and court requirements. Nonresponse does not automatically cancel the lien or bond; a court order is required. Public-improvement liens have a separate procedure under § 21-a.
If the lienor sues
The claimant must prove the underlying debt and an enforceable lien; the existence of the bond does not establish liability. Review the bond principal, surety and other proper parties with counsel. § 44-b removes the owner or public entity as a necessary defendant in the lien-enforcement claim when its stated contractor/subcontractor bond conditions are met. That does not erase independent contract claims or mean the owner can never be a proper party.
Respond to court papers and surety demands on time. A settlement should address payment, the lien, bond liability, releases, indemnity and return of collateral, rather than assuming that one resolves all the others.
Kushnick Pallaci PLLC handles lien enforcement and defense and surety disputes throughout New York. Call 631-752-7100 or email vtp@kushnicklaw.com.
Attorney Advertising. General information, not legal advice.
what should I look for as mine field issues when vacating a lien. The lienor did not produce paperwork within the five day court ordered request to show all information
ReplyDeleteIf a Lienor has been ordered to produce a properly verified itemized statement pursuant to Lien Law Section 38, and has not complied with the Court order, a second motion can be made for failure to comply with Section 38 and the lien can be discharged based solely on non-compliance. This motion can ONLY be made after a first court order has been obtained ordering disclosure. As for mine fields with liens, they are a plenty. In regards to the most common errors that I see with mechanic's liens in New York, read this article: http://nymechanicsliens.blogspot.com/2010/10/seven-deadly-sins-of-mechanics-liens.html
ReplyDeleteIf a mechanic's lien has been properly bonded for an amount of 110% of the lien amount, can the contractor obtain a judgment in excess of the bond amount (i.e. if the contractor is seeking attorney's fees and prejudgment interest)? If so, who is liable for the excess amount? It is my understanding that the bond resulted in the lien being removed from the property and the contractor can no longer force a sale of the property to recover any excess judgment.
ReplyDeleteExcellent question. Once the bond is obtained and posted for the proper amount (110% as you indicate) it removes the lien from the property itself. The bond can then be foreclosed upon and in some situations the ultimate judgment does exceed the value of the bond. If the lien discharge bond does not fully satisfy the judgment after foreclosure of the mechanic's lien then: 1) the entire bond will be turned over to the lienor to partially satisfy the judgment; and 2) if the lienor was smart and had a good attorney it asked for a deficiency judgment. A deficiency judgment means that in the event the bond does not fully satisfy the claim, he, she or it wants a judgment for the full amount left over and wants that judgment directly against...(fill in whoever the lienor can attach the judgment to). In almost all instances, the person that the deficiency attaches to is the person who hired the lienor. If the mechanic's lien was removed from the property, then the property cannot be forced into sale to recover the excess judgment UNLESS the deficiency attaches to the owner. This could be, for example, where the owner hired the lienor. If the lienor then obtained a deficiency, and the deficiency was not paid, the lienor could theoretically record the judgment in the County Clerk's office and it would become attached to the property which the lienor could then have sold through a court proceeding (unlikely unless the deficiency judgment justifies the EXPENSIVE sale process).
ReplyDeleteIs the lien indefinitely extended once a foreclosure action has been commenced? That is, what about a situation where the lien is bonded, a foreclosure action is timely commenced, but thereafter the action lingers and appears to be abandoned? Keep paying modest (but annual) bond premiums vs. legal fees to dismiss the action?
ReplyDeleteForeclosure upon a mechanic's lien that has been bonded will allow the lien the remain "alive" for the entire foreclosure action. This is because an action to foreclose upon a mechanic's lien that has been bonded is really deemed an action to test the validity of the lien. If the lien as filed is deemed valid and enforceable, the bond is required to pay. This is different than the situation where a lien is filed and foreclosed upon but there is no bond. When there is no bond, the lien remains valid for as long as the Notice of Pendency is valid (3 years but can be renewed).
ReplyDeleteHi Vincent,
ReplyDeleteAfter you file a discharge bond, what is the procedure for canceling the bond and vacating the mechanic's lien?
Do you have to request and file an ex parte order canceling the bond and vacating the mechanic's lien?
Alternatively, can you simply file a satisfaction of mechanic's lien with the county clerk?
Thank you,
Ryan
In furtherance of my question above, I just wanted to clarify that the parties have settled. Now we just need to cancel the bond and vacate the lien so that the collateral may be returned.
ReplyDeleteA mechanic's lien was filed back in September 2011. It was never extended or foreclosed upon. As I understand the law, the lien would have expired in September 2012. However, when searching the county clerk's database (Erie County), the lien still appears. Is there a way to have it removed from the database so it does not appear as a search result?
ReplyDeleteEven an expired mechanic's lien will almost always still show up on the lien docket. However, it has no impact on valid and clean title because it is an expired and unenforceable lien. The most a court does is cancel the lien (not actually remove it from the docket which is nothing more than a record of items filed).
ReplyDeleteIf a lien is bonded after an action is commenced foreclosing on the lien, is a notice of pendency still required or can it be vacated?
ReplyDeleteIf mechanic's lien on private property has been discharged by bond after a foreclosure action has been commenced then the notice of pendency is no longer required and can be vacated.
ReplyDelete