Reviewed September 7, 2026.
In 67 Liberty LLC v. 67 Liberty Street Associates, LLC, 100 AD3d 467 (1st Dept 2012), the property owner argued that a lien assignee could not foreclose without also receiving the assignor’s rights and obligations under the construction contract.
The First Department rejected that argument and affirmed the denial of dismissal. The Lien Law permits assignment of enforceable debts validly filed as liens. The absence of a transfer of the entire underlying construction agreement did not, by itself, prevent that foreclosure action.
The decision does not cure an invalid lien
An assignee still must establish the assigned debt and enforceable lien rights and address applicable defenses. Confirm the scope and execution of the assignment, the unpaid amount, filing and service compliance, and preservation deadlines. An assignment does not restart the lien’s duration.
Lien Law § 14 governs the written, acknowledged assignment and filing with the original county clerk. Recording matters for necessary-party treatment and protection against qualifying payments to the original lienor. Contract claims or obligations outside the assigned lien should be analyzed separately.
Kushnick Pallaci PLLC assists clients throughout New York with assigned mechanic’s lien enforcement. Contact 631-752-7100 or vtp@kushnicklaw.com.
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