This week we wanted to draw your attention to an interesting New York County Supreme Court decision issued by Justice Verna L. Saunders, which, in part, granted a Defendant’s motion to vacate and cancel a Mechanic’s Lien pursuant to Lien Law § 19(3) and discharged its posted Bond based on the fact that the Plaintiff failed to timely commence an action to foreclose on the Lien within one year of the lien filing date.
The relevant facts of, and a link to, the case are set forth below.
In Kronick v. RP Wimbledon Owner LLC, 2023 NY Slip Op 31188, decided April 5, 2023, the Supreme Court, New York County, discharged a mechanic’s lien because it had expired pursuant to Lien Law Section 17 (“Duration of lien”) before an action was commenced to foreclose the lien. The Court also dismissed causes of action to foreclose on the lien and to recover under the surety bond filed in connection with the lien. According to the Court, “…the surety bond is discharged because this lien foreclosure is untimely.” However, causes of action for breach of contract, unjust enrichment, quantum meruit and an account stated, not affected by the expiration of the mechanic’s lien, remained.
This decision is posted at https://www.nycourts.gov/reporter/pdfs/2023/2023_31188.pdf
This case is another reminder of the importance of complying with the statutory deadlines set forth in the Lien Law to enable your clients to take full advantage of the protections afforded to them in connection with potential claims for non-payment
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