Reviewed September 7, 2026.
Yes—an arbitration clause does not by itself prevent an otherwise valid New York mechanic’s lien. The payment dispute and the security for that dispute are related, but their procedures are different.
Lien Law § 35 says filing a lien does not waive a contractual right to arbitration. When arbitrators determine the value or price of the work or materials, their award is conclusive between the arbitration parties in a lien foreclosure action. That does not mean an award automatically establishes every lien requirement or binds everyone who was not a party to the arbitration.
Section 34 generally prohibits advance waivers of Article 2 lien rights, with express exceptions for written waivers delivered with or after payment and specified agreements concerning already-filed liens. Read the actual waiver and payment history as well as the dispute-resolution clause.
Preserve both procedures
- Check lien eligibility, amount, filing and service deadlines.
- Follow applicable contract notice, mediation and arbitration requirements.
- Calendar lien expiration, extensions, foreclosure and any statutory demand.
- Coordinate court proceedings with arbitration, including any requested stay and the parties bound by the agreement.
Do not assume an arbitration demand extends the lien or that filing a lien starts arbitration. Counsel should plan both processes before either deadline expires.
Kushnick Pallaci PLLC assists clients throughout New York with construction arbitration and related lien disputes. Contact 631-752-7100 or vtp@kushnicklaw.com.
Attorney Advertising. General information, not legal advice.
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