Lien Law Subcontractor
Starting today, we will be sending out a weekly email entitled “Title Tuesday” designed to keep you informed on developing title issues, court cases, industry tips or updates on available policy products.
Here is the First one of this series (let us know what you think; your feedback matters!):
Court Case Involving Lien Law – Dismissal of Sub-Contractor’s Complaint, Discharge of Lien, Cancellation of Lis Pendens
The Supreme Court, Kings County, upon the pre-answer motion of the Defendant-Property Owner, dismissed the complaint in a subcontractor’s action to foreclose its mechanic’s lien, discharged the lien, and cancelled the lis pendens. The deciding factor in the case was that the general contractor had executed an Unconditional Waiver and Release Upon Final Payment, establishing that the Defendant-Property Owner had paid the general contractor for the subcontracted work before the mechanic’s lien was filed. The Plaintiff did not allege it performed work or provided materials for the Defendant’s property after the date on which the general contractor, in the Waiver, indicated it had been paid in full. The Court further noted that “[s]ubject to certain exceptions which are not relevant to this case, ‘a property owner who contracts with a general contractor…does not become liable to the subcontractor on a quasi-contract theory’ [citation omitted].” O.R.B Star Construction, Inc. v. Lindahl, 2022 NY Slip Op 30495, decided January 28, 2022.
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