Jose A. Aquino | Duane Morris
In the matter of Arcadia Landing, LLC v. CVM Construction Corp., the Supreme Court, Appellate Division, Second Department, New York, recently rendered a decision concerning a mechanic’s lien filed by CVM Construction Corp. The petitioner, Arcadia Landing, LLC, demanded an itemized statement of the lien pursuant to Lien Law § 38, which CVM Construction Corp. provided along with supporting exhibits. However, Arcadia Landing deemed the response insufficient and sought further details through an amended petition.
The Supreme Court, Nassau County, presided over by Judge Eileen C. Daly-Sapraicone, denied the amended petition and dismissed the proceeding. Upon appeal, the Appellate Division affirmed the lower court’s order.
Lien Law § 38 mandates that a lienor must furnish a written statement detailing the labor and materials that constitute the lien, along with the terms of the contract. In this instance, CVM Construction Corp. complied by listing the items of work and asserting that the work was completed. The petitioner disputed the completion of the work, but the court determined that such disputes are more appropriately resolved in an action to enforce the mechanic’s lien rather than through additional demands for information in the special proceeding under Lien Law § 38.
This decision is consistent with the precedent established in Matter of Mr. White, L.L.C. v. Pink Shirt Constr., Inc., where the court exercised its discretion to vacate and cancel a mechanic’s lien because the respondent failed to commence an action to enforce the lien as required by Lien Law § 59. The validity of the lien and any disputes regarding the completion of work were to be resolved in a foreclosure action, which the respondent in that case admitted it never commenced. Similarly, in the Arcadia Landing case, the court emphasized that the appropriate forum for resolving disputes about the completion of work is in a foreclosure action, not through procedural demands for more detailed statements.
This decision underscores the critical importance of resolving factual disputes concerning the completion of work delineated in a mechanic’s lien within the context of a foreclosure action, rather than through a special proceeding seeking an itemization of the lien. The appellate court’s affirmation of the lower court’s decision elucidates the judiciary’s position on the adequacy of compliance with Lien Law § 38 and delineates the proper procedural avenues for addressing such disputes.
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