Court Cannot Vacate, Modify or Discharge Lien Law § 19 Lien Where There is no Defect on the Face of the Lien

On October 1, 2020, the First Department issued a decision in Pizzarotti, LLC v. FPG Maiden Lane LLC, 2020 NY Slip Op. 05305, holding that a court cannot vacate, modify or discharge a Lien Law § 19 lien where there is no defect on the face of the lien, explaining:

A court has no inherent power to vacate, modify or discharge a notice of lien pursuant to Lien Law § 19(6) where there is no defect on the face of the lien, and any dispute concerning the lien's validity must await a trial. In the context of the motion, to the extent the court relied upon waivers in payment applications, plaintiff's submission of evidence of the parties' course of conduct raised an issue of fact as to whether the waivers released plaintiff's payment claims.

(Internal citations omitted).

We frequently litigate disputes over the construction, sale or leasing of commercial property. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you are involved in a dispute regarding a commercial real estate transaction.