Friday, March 22, 2013

Wrongfully Filed Lien Claims: Neptune Estates and the Limits of the Ruling

Reviewed September 7, 2026.

In Neptune Estates, LLC v. Big Poll & Son Construction, LLC, 39 Misc 3d 649 (Sup Ct, Kings County 2013), the trial court awarded damages after finding that a fraudulent lien stalled construction. It treated the claim as injury to property, distinct from statutory willful exaggeration and slander of title.

The court awarded $150,036.41 for proven flood-insurance and mortgage-interest costs during the resulting delay. It rejected an additional claimed financing expense for insufficient proof and imposed liability on a participating principal based on the tort findings.

The ruling is not a universal cause of action

The original article described this remedy too broadly and suggested a generally lower burden than a statutory exaggeration claim. This was a trial-level decision on particular evidence. In Power Air Conditioning Corp. v. Batirest 229 LLC, 2017 NY Slip Op 30750(U), another trial court expressly declined to follow Neptune’s injury-to-property theory. The remedy cannot be assumed available merely because a lien is disputed or later discharged.

Analyze the pleaded tort, governing authority, wrongful conduct, causation and documented damages separately from Lien Law § 39-a. Signing for a corporation does not by itself establish personal liability on every claim. Lienors should support the amount and entitlement before filing; owners should preserve evidence of both the challenged conduct and any resulting loss.

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.

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