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What impact does it have on the company that has not paid us? Does a mechanics lien really work to get us paid?

New YorkMechanics Lien

We are a PA based company that performed renovation work on a golf course in Suffolk County NY. They are not paying the last 2 invoices for a total of $33,178.28 and a retainage invoice of $129,120.06.

4 replies

Sep 30, 2022

A mechanic's lien is a powerful tool in that it becomes a red flag on the title of the property, and it can inhibit the sale or refinance of the property (and often puts a property owner/borrower in default of their loan agreement). As to the non-paying upstream contractor, when an owner is served with a mechanic's lien, the first thing he or she does is to reach out to the general contractor to find out why one of the subcontractors has not been paid. Unfortunately, the lien is not without limitations as it is dependent on monies still owning to your upstream contractors, through and including the GC. If there are provable backcharges against an upstream contract that exceed the amount still left owing on the contract, then although the lien remains of record, it may ultimately not be collectible. 

I would suggest speaking with experienced construction counsel about the specifics of your situation, and what issues you may face in asserting, and ultimately foreclosing, the lien.

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Sep 30, 2022
Depending on timing and other facts, a lien could help get you paid. what it really does is provide some security for collection at the end. you should consult an experience construction lawyer, preferably one that works regularly in Suffolk County. Best of luck!
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Oct 1, 2022
The New York Mechanic's Lien law is one of the most powerful statutes in the entire State of New York, it allows anyone improving real property to attach a lien to the property itself so long as the property is being improved (generally, that means furnishing labor, materials or equipment, but there are also other exceptions). In other words, even if the general contractor or subcontractor does not pay you, you can go after the Owner to collect, and foreclose upon their property if you do not get paid one way or the other.
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Oct 1, 2022

As the commenters above note, a lien will not guarantee payment, but can exert serious pressure on the non paying party, especially if you file a legal action to foreclose the lien. I live in Suffolk county and some of my practice is in Suffolk county Supreme Court. Please contact me if you'd like to discuss your situation. 

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