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Does a supplier who sells tools have lien rights

I understand that if the tools/supplies are used and installed and becomes part of the property, there are lien rights. BUT what about tools like a hammer, screwdriver, drill bits, that are required to do the job, but are not part of the permanent structure? Are there lien rights in NY for tools like that that we sell or rent?

1 reply

Nov 18, 2019

Generally, tools that can be used over and over again and that aren't project-specific may not give rise to lien rights. i.e. Simple tools that can be used across a number of different projects won't necessarily always be lienable, but project-specific tools that are necessary for the completion of the given job might.

Suppliers who furnish tools in New York will have lien rights, to some degree

Regardless of the country-wide norms, though, New York does seem to specifically provide mechanics lien rights regarding the supply or rental of tools. New York materialmen are entitled to file mechanics liens when they go unpaid for their contribution to the improvement. § 2(4) of the New York mechanics lien statute specifically defines "improvement" to include the furnishing of tools and equipment for the alteration of the property. Further, § 2(12) defines a "materialman" to include those who furnish tools, and defines the term "furnishes material" to include the furnishing of tools to the project. So, to some degree, those who furnish tools to a New York construction project may be entitled to mechanics lien rights when they go unpaid. But, it'd still be wise to be cautious of filing a mechanics lien for tools that aren't job-specific since lien rights in the project property arise as a direct result of improvement to that project property. And finally, keep in mind that something a little less abrasive - like a Notice of Intent to Lien - may be just as effective to compel payment in some situations.

Additional resources

For more information on New York mechanics liens, here are some helpful resources: - New York Mechanics Lien Guide and FAQs - How to File a New York Mechanics Lien – Step By Step Guide to Get You Paid

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