Friday, October 21, 2011

Disputing a Mechanic’s Lien Amount: Use the Correct Procedure

Reviewed September 7, 2026.

Disagreeing with the amount of a mechanic’s lien does not, by itself, establish a facial defect permitting summary discharge under Lien Law § 19(6). The procedure is limited to the statutory grounds; it does not resolve every disagreement over payment, completion or performance.

Separate the issues

A notice may fail a required element, contain a disputed factual statement, include an overstated balance or be intentionally exaggerated. Those are not interchangeable conclusions. Gather contracts, payments, credits, work records and the filed notice before choosing a remedy.

In Broadway PT 1710 LLC v. Kingdom Associates, Inc. (1st Dept 2026), the court rejected a § 19(6) challenge based on issues beyond the notice’s face. It also explained that a § 38 itemization demand did not justify discharge without the required prior compliance order.

Exaggeration and accelerated enforcement

Willful exaggeration under §§ 39 and 39-a requires proof of intent, not merely a lower amount ultimately awarded. Contrary to an earlier version of this article, it need not always await a trial: Northe Group, Inc. v. Spread NYC, LLC (2011) permits summary disposition on conclusive evidence.

A § 59 demand is a separate statutory process with proper service, a deadline at least 30 days later and a court application if necessary. It is not a substitute for answering an existing foreclosure action or an automatic cancellation notice.

Kushnick Pallaci PLLC assists clients throughout New York with Section 59 demands and lien disputes. Contact 631-752-7100 or vtp@kushnicklaw.com.

Attorney Advertising. General information, not legal advice.

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