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How do I get the payment from surety company?

New YorkBack ChargesBond ClaimsBonding Off LienLawsuit

The client we filed a mechanic lien again, filed a lien discharge bond. Client still refuses to pay, we want to get paid by the surety company. What is our next step?

1 reply

Aug 21, 2020
If your mechanics lien claim was bonded off, generally, the next official step is to file a lawsuit against that bond to enforce the claim - much like enforcing a mechanics lien claim. Granted, there's still time to negotiate payment with the customer, owner, etc. Further, sending a document like a Notice of Intent to Foreclose could let them know you're willing to file suit, if necessary. Of course, sometimes, filing a lawsuit will ultimately be necessary in pursuing a claim. Under § 19 of New York, mechanics lien claimants who have their liens bonded off will generally face the same timeframe for filing suit - 1 year from when the lien was filed. I discussed this situation in a similar question: What to do after the GC bonded our lien? If it looks like payment isn't coming, and if threats of proceeding with a claim don't work, it might be time to consult a New York construction lawyer for help. For one, they can help to negotiate and show the others you mean business. Plus, if enforcing the claim does become necessary, they'll be able to help with that. You can begin the search here: Top New York Construction Lawyers.
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