If a lien is filed to enforce and receive a current outstanding progress payment. Does that prevent the possibility to submit a lien for future payments (if they excessively delayed or delinquent)?
1 reply
Sep 25, 2019
Nothing in New York's mechanics lien statute seems to block the ability to file more than one mechanics lien on the same New York property. So, in a situation where a mechanics lien has been filed for work done, then more work is performed but not paid for - a claimant could seemingly file a second mechanics lien covering the additional work performed after their original lien filing.
However, note that the New York mechanics lien deadlines run from either the completion of work or the last furnishing date. So, in a situation where the lien deadline might be far off, it might be wise to attempt recovery in some other way - like through an invoice reminder, demand letter, or even the threat of lien (more on that below) - before resorting to a mechanics lien claim. And, if a claimant holds off on their lien claim initially, then there may be no need to file multiple claims.
More on New York mechanics liens and their deadlines here: New York Mechanics Lien Guide and FAQs.
One lien release could release both liens if not worded carefully
However, keep in mind that a mechanics lien release for one lien filed on a property could involuntarily affect a totally separate lien filed on that same property by the same claimant. Mechanics lien releases will often release and waive all lien rights that the claimant has in the given property. So, if that's the case, releasing one lien might inadvertently waive rights to both liens if the claimant doesn't carefully word their lien release. Levelset discusses a similar issue in this article, which displays the effect one release can have on another lien: Can I Re-File a Mechanics Lien After I Remove the Lien?Threat of lien can force payment, too
It's also worth keeping in mind: mechanics liens are typically the nuclear option. And, because mechanics liens are such a powerful tool, merely warning or threatening to file a mechanics lien - with a document like a Notice of Intent to Lien- might be enough to compel payment. Considering the cost and headaches associated with lien filings, it's often a good idea to try and recover payment before it comes down to a lien filing.
More on recovery via a warning shot here: What Is a Notice of Intent to Lien and Should You Send One?