Right to Lien Legal Questions

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Hi Zlien Attorneys, My name is Jeff Leska and I work for a doggy day care company in Manhattan. We hired a GC to build-out a new store. The GC subcontracted to a window and door company to purchase and install our doors (subcontractor). The GC never paid the subcontractor (I’m sure you heard this before). Now the subcontractor is chasing us for the money owed to him and is threatening to place a lien on the bulding we’re in. I requested a copy of the invoice from the subcontractor and it shows the GC as the Bill To on the invoice. We’re a new tenant and a lien will certainly not sit well with the owner of the building. Our lease states that “If a mechanics lien is filed against the demised premises, or the building of the same forms a part, for work claimed to have been done for, or materials furnished to, Tenant, whether or not pursuant to this article, the same shall be discharged by Tenant within 45 days thereafter, at Tenant’s expense, by payment or filing a bond as permitted by law”. It appears that if the subcontractor files a lien against the bulding our company would be obligated to either pay the GC’s obligation to the subcontractor or purchase a bond guaranteeing that the subcontractor be paid in the event he sues the GC for payment and loses. According to the paragraph in the lease it appears that if we didn’t pay the invoice or purchase a bond we would be in breach of the lease (contract). Having to double-pay for the doors in order to keep the subcontractor from placing the lien on the building possibly causing our eviction or paying damages to the owner is very unfair. The invoice is for $44,000.00 so there is significant justification for the subcontractor to act to get paid and it is certainly unfair to him that he hasn’t been paid but it’s also unfair to involve us in a situation that is between the subcontractor and the GC. Can you guys kindly offer a suggestion as to how to handle the situation we’re in? Much appreciated. Jeff Leska 212-401-3026. jleska@biscuitsandbath.com
1 year ago
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