Supreme Court of New York Rejects Property Owner’s Request for Further Itemization of Mechanic’s Lien, Holding Production of Invoices Detailing the Quantity, Price and Date of Delivery of Materials Is Not Required

Matter of Red Hook 160 LLC v. Borough Constr. Grp. LLC, No. 524909/18, 2019 BL 122210 (N.Y. Sup. Ct. Mar. 19, 2019)

gazzolaj_thumb
John J. Gazzola

This cases arises out of a project owner’s request for further itemization of amounts claimed in a construction manager’s mechanic’s lien.  Red Hook 160 LLC (“Red Hook”), the owner of the property sought to be liened, demanded a revised itemized statement of the mechanics’ lien filed by Borough Construction Group, LLC (“BCG”), the construction manager hired in connection with the construction and renovation of a six story building located at 160 Imlay Street in Kings County, New York.

Continue reading “Supreme Court of New York Rejects Property Owner’s Request for Further Itemization of Mechanic’s Lien, Holding Production of Invoices Detailing the Quantity, Price and Date of Delivery of Materials Is Not Required”

New York Court of Appeals Holds That Direct Consent by Landlord Is Not Necessary for Contractor to Enforce a Lien Against the Property for Work Performed for a Tenant

Ferrara v. Peaches Café LLC, 2018 NY Lexis 3244 (November 20, 2018)

cuozzom_thumb
Michelle J. Cuozzo

COR Ridge Road Company, LLC (“COR”), as landlord, entered into a 10 year lease with Peaches Café, LLC (“Peaches”).  The lease imposed certain construction requirements on Peaches for it to operate its restaurant, including adherence to specific electrical specifications. The lease also provided that COR approve of any improvements to the premises, that Peaches submit to COR all design plans for the electrical work, and that any improvements made become part of the realty.  Angelo Ferrara (“Ferrara”) performed some of the electrical work.

After Peaches closed its business, Ferrara filed a mechanics lien against the property for more than $50,000 Peaches owed him, noticing both Peaches and COR. Ferrara subsequently sought to foreclose on the lien.  Both Ferrara and COR moved for summary judgment in the foreclosure action, and the trial court granted COR’s motion and dismissed the complaint against it. The Appellate Division granted Ferrara’s motion for summary judgment, upholding the validity of the lien on COR’s property. COR appealed to the Court of Appeals, which affirmed. Continue reading “New York Court of Appeals Holds That Direct Consent by Landlord Is Not Necessary for Contractor to Enforce a Lien Against the Property for Work Performed for a Tenant”

Actual Notice Exception to Pre-Lien Notice Requirement of Nevada Lien Statute Does Not Apply to Architect’s Offsite Work When No Onsite Work Has Been Performed Even Though Owner Knew That Architect Was Performing Work for the Project

Iliescu v. Steppan, No. 68346, 2017 Nev. LEXIS 38, (Nevada Supreme Court, May 25, 2017)

Appellants Iliescu entered into a Land Purchase Agreement to sell four unimproved parcels in downtown Reno, Nevada to Consolidated Pacific Development (“CPD”) for development of a high-rise, mixed-use project to be known as Wingfield Towers, which agreement was subsequently assigned to BSC Investments, LLC (“BSC”).  BSC subsequently hired Mark Steppan (“Steppan”), to provide design services for the Wingfield Towers.  Financing was never obtained for the project and the escrow never closed on the sale of appellants’ property.  In addition, since BSC did not pay Steppan for his services, Steppan recorded a mechanic’s lien against appellants’ property.  However, Steppan did not provide appellants with a pre-lien notice.

In this case, the Nevada Supreme Court was asked to determine whether the actual notice exception for pre-lien notices should be extended to offsite work and services performed by an architect for a prospective buyer of the property.  NRS 108.245(1) requires a mechanic’s lien claimant, other than one who performs only labor, to deliver a written notice to the owner of the property of the right to lien after they first perform work on or provide material to a project.  However, substantial compliance with this requirements is met if the property owner: (1) has actual notice of the construction on the property and (2) knows the lien claimant’s identity.  Continue reading “Actual Notice Exception to Pre-Lien Notice Requirement of Nevada Lien Statute Does Not Apply to Architect’s Offsite Work When No Onsite Work Has Been Performed Even Though Owner Knew That Architect Was Performing Work for the Project”