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Is a mechanics lien the right way to go in my situation vs small claims court?

New YorkMechanics Lien

I entered into a Project Management Agreement for the completion of a modular home in Suffolk County NY. The agreement was strictly for management services. The agreement was signed in November 2018 and structured in to 3 payments: 1) at the signing of the agreement, 2) when the modular home arrived and 3) when the final CO was issued. The first 2 payments were made. The final payment of $5,000 was due when I obtained for the owner the final CO, which was issued on November 10, 2021. Since then I have not heard from the Owner. Invoices had been sent and ignored. Phone calls and texts also ignored. I'm debating whether a mechanics lien would be appropriate or if I should proceed in small claims court. I understand the maximum in small claims court is $3,000. The modular manufacturer owes the owner monies that are payable to my company. Instead of forwarding those monies, if I held onto them, the balance owed would be just over the $3,000. Is a mechanics lien appropriate in my situation? Stacey

1 reply

Feb 21, 2022
You have wisely considered costs in your analysis, First, Suffolk county allows claims of up to 5K in small claims court. A lien through a service like Level Set will be fairly reasonable. you might want to lien, and file in small claims court. If you receive money due the owner, hold it in a separate account until your rights are established judicially. you may need an attorney for small claims court if you are proceeding corporately. there are good construction lawyers in Suffolk to help you.
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