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What amount can we legally pursue with our lien claim?

The lien is for a job where the contract was terminated without cause so the customer could have a cheaper bidder takeover. We definitely incurred both material and labor costs on this job. Since contract was terminated without cause the “amount owed” may not be as straight forward as on other jobs. Just trying to get a feel for what we can legally pursue here in terms of listing as “amount owed”.

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Apr 20, 2020

Under New York's mechanics lien rights are available "for the principal and interest, of the value, or the agreed price, of such labor, including benefits..." So, if there's an agreed-upon price or at least guidance from the contract on how to price the portion of the work performed, then it'd be wise to use that as a jumping-off point. If there isn't clear guidance to be gleaned from the contract, then coming up with a market value for the labor or materials provided might make sense. Though, it'd be wise to do that in a way that's justifiable. It's important to make sure the pricing given doesn't conflict with the amounts in the contract, and it should be a price you're comfortable arguing for. After all, it's possible you'll literally have to do that to negotiate payment or resolve the lien dispute. With all that being said - there's a difference between fraud and an honest mistake. Meaning, incorrectly calculating the amount of the lien won't necessarily be fatal to your claim. New York mechanics lien claimants get themselves in trouble when there's been a willful exaggeration of the amount of the lien, as laid out under § 39-a of the state's mechanics lien statute. So, again - if there's a reasonable calculation backing a mechanics lien amount, that will usually be acceptable. As a final note - New York courts have decided that the bar for willful exaggeration is pretty high. And, if the lien wasn't malicious or intentionally fraudulent, then claimants usually won't face a dire situation with their lien claim. Still, it's important to be responsible when calculating your lien amount.

Additional New York mechanics lien resources

In addition to the above, these resources should provide a lot of great background on the New York mechanics lien process. - New York Mechanics Lien Guide and FAQs - How to File a New York Mechanics Lien – Step By Step Guide to Get You Paid

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