Menu
Home>Levelset Community>Legal Help>Is a mech. lien legal if filed on an entire co-op rather that just the specific co-op unit/shares, or can it be amended?

Is a mech. lien legal if filed on an entire co-op rather that just the specific co-op unit/shares, or can it be amended?

New York

I am an attorney in New York representing an architect who had a mechanic's lien filed through Levelset. My client the architect is now involved in a AAA arbitration proceeding against his client, a co-op unit owner in New York, and the client/co-op unit owner is claiming that the lien is illegal as it has been placed on the entire co-op rather than just the individual unit (i.e., shares in the co-op?). Can you please advise if the lien is still valid, and whether it can be amended to be placed only upon the individual unit owner's premises/shares. Also, can you point me to any type of legal authority that I might use to argue the lien is not invalid and/or merely needs to be amended? Thank you.

5 replies

Mar 17, 2021
NY Mechanic's Liens are against real property not shares. The issue may be that the coop leaseholder waived any claims against the Co-op before the project started. If this is the defense, it may violate public policy. It sounds more like this is a condo, in which case, the lien should be against the individual unit. Regardless, liens may be amended. Depending on the timing and the amendment, you might need a court order, it just depends.
0 people found this helpful
Helpful
Mar 17, 2021
Ms. Sigmond, thank you for your response. Just to clarify, the dispute (arbitration) is between the co-op unit owner/shareholder and its architect. The unit owner hired the architect for improvements to the unit (which did require written consent in some form from the co-op -which was in fact obtained). Before the arbitration was filed, the architect had a lien company file a mechanic's lien (for outstanding architectural fees) on the co-op itself as the property owner. The co-op unit owner is now threatening to seek emergency relief in the arbitration to vacate the lien, claiming that it was improperly filed against the co-op as a whole (rather than just the unit owner's unit). But, as you state, if a lien can't be filed against "shares", and if it is improper to file as against the co-op as a whole as the owner of the property, then how would a lienor be able to file a mechanic's lien against a co-op unit owner for improvements to the individual unit. The unit owner's counsel claims the situation is akin to the Dewees Mellor, Inc. v. Weise, 1993 WL 591608. Thank you for any further input that you can provide.
0
Report Spam
Mar 17, 2021
The co-op attorney is arguing that the building did not consent to the improvement. that would be a basis for objecting to the lien. the question is did the co-op consent to the improvement? that depends on the documents, which i have not seen. do you have the approval package from the co-op?
0 people found this helpful
Helpful
Mar 17, 2021
That is very helpful. I agree consent will be an important (perhaps dispositive?) issue. Unfortunately, I am still collecting relevant documents and I thank you again for your very kind assistance. Once I review the documents myself I will be in a better position to comment on them, but I believe I have a better understanding now. Thank you again!
0
Report Spam
Mar 17, 2021
good luck
0 people found this helpful
Helpful