When a Final Lien Waiver Did Not End the Payment Claim: Riedl v. Homeyer

Reviewed September 7, 2026.

Leonard E. Riedl Construction, Inc. v. Homeyer, 105 AD3d 1391 (4th Dept 2013), shows why a release must be considered with the actual transaction. A contractor signed a document stating that work was complete, bills were paid and lien rights were waived. The trial evidence showed unfinished work, an agreement to make further payments and conduct inconsistent with a complete release.

The appellate court affirmed the payment award. It recognized the usual rule that an unambiguous release is interpreted according to its language, while finding that the evidence supported the trial court’s conclusion about what these parties intended.

Use accurate language at the payment exchange

The case does not mean that a signed final waiver can routinely be ignored. Before signing or relying on one, identify the payment, work period and rights being released. Reserve any agreed unpaid retainage, extras or disputed claims expressly. If payment has not been received and collected, consider appropriate conditional language instead of an inaccurate acknowledgment of payment.

Lien Law § 34 contains important rules and exceptions for lien waivers. A broader contractual release can raise additional issues. Keep the payment record, executed waiver and any agreed exclusions together so that the written documents reflect the deal.

Kushnick Pallaci PLLC assists clients throughout New York with construction contract, waiver and release review. Contact 631-752-7100 or vtp@kushnicklaw.com.

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New York Lien Release Dos and Don’ts

Reviewed September 7, 2026.

A lien waiver or release on a New York construction project can affect more than a routine progress payment. Read the operative language before signing or requesting one. The document’s title does not determine whether it is partial, final, conditional, or a broader release of claims.

Check the transaction the waiver actually describes

• Correct project, property, payer, contractor or supplier, and legal entity names.
• Payment amount, payment application and the period or work covered.
• Whether the waiver covers only the amount paid, all work through a date, or the entire contract.
• Whether it releases only lien rights or also contract, bond, delay, change-order or other claims.
• Whether retainage, disputed extras, pending changes and other unpaid items are expressly reserved.
• Whether effectiveness depends on actual receipt of the identified payment.

Partial and final waivers

A partial waiver should accurately identify the limited payment or work it covers. A form labeled “partial” can still contain language releasing all claims through a date, including unpaid work. Reconcile the waiver with the project ledger and write any agreed exclusions clearly.

A final waiver ordinarily addresses the remaining lien rights or claims described in the document. Signing it does not prove that payment actually arrived. Before delivering one, reconcile the contract balance, retainage, change orders, backcharges, prior payments and any settlement. Do not assume an invoice or a separate email preserves a claim that the signed release appears to surrender.

Coordinate payment and effectiveness

A conditional waiver can state that it becomes effective only to the extent the specified payment is actually received and collected. An unconditional acknowledgment should not inaccurately state that you have already been paid. An exchange for a check does not by itself eliminate the risk that the check will be dishonored.

If a lender, owner or contractor requires documents before releasing funds, resolve the payment mechanics and waiver language in advance. Counsel can help structure an agreed exchange or escrow and preserve identified unpaid items. Do not sign an inaccurate certificate merely because it is described as a standard form.

New York’s rule on advance waivers

Lien Law § 34 generally makes agreements waiving Article 2 lien rights unenforceable, but expressly permits written waivers delivered simultaneously with or after payment for the labor or materials. It also treats written agreements to subordinate, release or satisfy a lien after filing differently. These exceptions matter: do not assume every waiver is void or that the statute invalidates every other promise in a broad release.

When an existing recorded lien is being settled, also address the proper satisfaction or release filing and any bond, litigation and payment obligations. Keep the executed documents and proof of payment together.

Kushnick Pallaci PLLC reviews construction contracts, waivers and releases and handles mechanic’s lien disputes throughout New York. Call 631-752-7100 or email vtp@kushnicklaw.com.

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