A mechanic’s lien is a legal tool contractors, subcontractors, and suppliers use to secure the payments they are owed for work performed on property improvements. While commonly associated with payment disputes, understanding the functions and implications of a mechanic’s lien in accident cases is crucial for those involved in the construction industry, particularly in New York.

This guide, tailored by the Suffolk County construction accident lawyers with Carner & DeVita, explores the nature of mechanic’s liens and their relevance in construction accident scenarios.

what is a mechanics lien

What is a mechanic’s lien?

A mechanic’s lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property. The lien ensures payment to contractors, subcontractors, laborers, and material suppliers when their work on a property enhances its value.

Establishing a mechanic’s lien in New York

In New York, the process for filing a mechanic’s lien is governed by the New York Lien Law. To file a mechanic’s lien, one must submit a lien claim to the county clerk’s office where the property is located. This claim must be filed within eight months of the last date the claimant provided labor or materials for a private project or within thirty days for a public project. The filed lien affects the property’s title, preventing the owner from refinancing or selling without addressing the debt.

The role of mechanic’s liens in construction accident cases

While mechanic’s liens are primarily tools for securing payment, their existence can complicate construction accident cases, especially when determining liability and resolving disputes. Here’s how mechanic’s liens might play a role:

  • Impact on liability insurance – A mechanic’s lien can affect the claims process in cases where a construction accident damages the property. Insurance companies might delay payouts until lien disputes are resolved, especially if the accident implicates the quality or integrity of the work performed under the lien.
  • Influence on settlement negotiations – If a contractor or subcontractor faces financial pressure from unpaid invoices in an accident, a mechanic’s lien might push them to settle quickly. Conversely, property owners might use the existence of liens as leverage in accident-related negotiations.
  • Complications in legal proceedings – Mechanic’s liens can complicate legal proceedings related to construction accidents. They may bring additional parties into lawsuits, such as lienholders claiming damages or losses related to the incident.

How Carner & DeVita can assist

Carner & DeVita can provide invaluable assistance in navigating the intersections between mechanic’s liens and construction accident cases. Our expertise includes:

  • Legal representation – We can represent clients in filing and defending against mechanic’s liens and managing any related accident claims.
  • Strategic advice – Our firm offers strategic advice on managing the impact of mechanic’s liens on accident litigation, ensuring that all aspects of the case are handled effectively.
  • Negotiation and litigation support – With extensive experience in construction law, Carner & DeVita can negotiate resolutions or litigate to protect our clients’ interests, whether they are property owners, contractors, or injured parties.

We are experts in navigating mechanic’s liens and construction accidents

With the support of experienced legal counsel like Carner & DeVita, stakeholders can effectively manage the complexities introduced by mechanic’s liens, from securing payment to handling accident-related disputes.

To schedule your free consultation, contact us online or call (631) 543-7070 today.