Tuesday, May 21, 2013

Collecting on a New York Mechanic’s Lien: What Happens After Filing?

Reviewed September 7, 2026.

Recording a mechanic’s lien provides potential security for a construction payment claim. It does not produce a payment order or prove that the amount claimed is owed.

Choose a collection strategy early

Review the contract, invoices, payment applications, change orders, payment history, releases and disputed work. Consider the amount at stake, available security, likely defenses, arbitration requirements and litigation costs. Negotiation, mediation, a payment agreement, a bond claim or litigation may form part of the response. There is no universal requirement to wait 30 or 60 days after filing.

Preserve the lien while seeking payment

Private liens are generally subject to a one-year duration under Lien Law § 17, with extension and foreclosure requirements that vary, including special treatment of single-family dwellings. Public improvement liens have separate rules. A demand to foreclose can require action sooner; ordinary contract limitation periods do not replace lien deadlines.

Respond promptly to a § 38 itemization demand or § 59 foreclosure demand. Neither settlement discussions nor an arbitration demand should be assumed to preserve an expiring lien.

Enforcement requires proof and proper parties

A foreclosure action requires proof of the debt and a valid, preserved lien. The parties may include the payment obligor, owner, competing lienors and other interested parties, depending on the relief and security. A discharge bond changes the security and may change necessary parties; it does not guarantee payment.

Some disputes settle; others require discovery, motions or trial. Timing depends on the court and the case, so a fixed litigation timetable would be misleading. Contract, trust fund and payment-bond claims should also be evaluated, with no double recovery.

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.

1 comment:

  1. I am in received of a Notice Under Mechanics Lien Law, to what I have answered requesting an itemized statement. Both documents I have received regular mail. After reviewing the itemized statement, I realized the contract amount is higher than the original copy I have, (not included in their statement, also they included two change orders I have never seen before. How coud I answer. They can't make up amounts owed, can they?

    ReplyDelete