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How can I get rid of a contractor who has filed a mechanics lien.

New YorkChange Orders
Anonymous Contractor

I retained a contractor to install a subfloor an agreed to pay the final installment upon completion of the work. the work is far for being finished but the contractor now says that garbage removal, installation of tecos and straps, installation of a support columms etc are punch list items that he would complete after full payment. He also added an extra 4600 to the contract without my approval. another change order was well documented and paid. I have written to the contractor that I would pay him once the work is done. He sent me a bill for 9900 including the disputed item asking for payment that evening. I refused and he filed a lien this morning. I have no idea what it is wrong with the contractor. I am willing to pay but want the work to pass the building inspection which the contractor wrote it could not until some items included in its punch list are addressed. To me this is a clear case of malicious lien. What are my options?

1 reply

Matt Viator
Construction Lawyer
Levelset Admin at Levelset
| 1,005 reviews
Jan 10, 2020
Mechanics liens should generally be the nuclear option. And, contractors should be eager to jump the gun and file a lien claim at the drop of a hat. Still, while it's unfortunate, it's not terribly uncommon for a contractor to file a mechanics lien at a time that seems a bit early. When an improper lien has been filed, an owner can always contest that claim. And, in a situation where a contractor has filed a lien for work that's not yet been performed - there should be solid ground for contesting the lien claim. What's more, even if some of the lien amount represents work that's been done, if a contractor is demanding payment outside of the schedule set out in the contract, then that, too, could work in favor of the owner. Further yet, a contractor isn't simply entitled to alter the contract as they see fit - particularly when that means unilaterally raising the contract price to a serious degree with unapproved change orders.

Lien challenges can be an uphill battle, particularly in New York

Before electing to challenge a New York mechanics lien, though, it's worth noting that NY lien challenges have become tough over the years. Levelset discusses that idea in these articles: (1) Want To Challenge A New York Mechanics Lien? Note These Words of Wisdom; and (2) Lien Law Alert: Are New York Mechanics Lien Challenges Impossible? Contesting a lien claim may well be worth it, but know that lien disputes can get ugly and can require legal action. So, where it makes sense, it might be cheaper, easier, and faster to instead come to some resolution with the claimant, themselves, and to push them to release their lien as a result. In any event, this resource breaks down some options that an owner will have when facing a lien claim, and I think it should be helpful here: A Mechanics Lien Was Filed on My Property – What Do I Do Now?
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