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Executive Towers at Lido, LLC v. Metro Construction Services, Inc.

Appellate Division of the Supreme Court of New York, Second Department
Mar 17, 2003
303 A.D.2d 545 (N.Y. App. Div. 2003)

Opinion

2002-10286

Argued February 11, 2003.

March 17, 2003.

In an action, inter alia, for a judgment declaring certain notices of mechanic's liens void pursuant to Lien Law § 39, the plaintiff appeals from stated portions of an order of the Supreme Court, Nassau County (Cozzens, J.), dated September 25, 2002, which, inter alia, denied that branch of its motion which was for summary judgment on its first, second, and third causes of action.

Herzfeld Rubin, P.C., New York, N.Y. (Herbert Rubin, David B. Hamm, and Herbert Lazar of counsel), for appellant.

Neufeld O'Leary, New York, N.Y. (Denis P. O'Leary of counsel), for respondents.

Before: A. GAIL PRUDENTI, P.J., GABRIEL M. KRAUSMAN, GLORIA GOLDSTEIN, ROBERT W. SCHMIDT, JJ.


DECISION ORDER

ORDERED that the order is affirmed insofar as appealed from, with costs.

The plaintiff's claims under Lien Law §§ 39 and 39-a are not appropriate for summary resolution at this stage of the case. In an appropriate action, Lien Law § 39 authorizes the court to declare a lien void upon finding that it has been "wilfully exaggerated." Lien Law § 39-a renders a lienor found to have made such an exaggeration liable for damages and an attorney's fee for services rendered in securing discharge of the lien. The two sections are to be read together (see Goodman v. Del-Sa-Co Foods, 15 N.Y.2d 191; Pyramid Champlain Co. v. Brosseau Co., 267 A.D.2d 539; Guzman v. Estate of Fluker, 226 A.D.2d 676). Lien Law § 39-a is penal in nature, and thus is strictly construed in favor of the party against whom the penalty is sought (see Goodman v. Del-Sa-Co Foods, supra; East Hills Metro v. Dennis Constr. Corp., 277 A.D.2d 348; Pyramid Champlain Co. v. Brosseau Co., supra; Guzman v. Estate of Fluker, supra; Joe Smith, Inc. v. Otis-Charles Corp., 279 App. Div. 1, affd 304 N.Y. 684). For the foregoing reasons, the issue of the defendants' alleged wilful exaggeration of the subject liens — a necessary determination for purposes of both Lien Law §§ 39 and 39-a should be resolved at the trial of the defendants' lien foreclosure counterclaim (see Aaron v. Great Bay Contr., 290 A.D.2d 326; Wellbilt Equip. Corp. v. Fireman, 275 A.D.2d 162; Guzman v. Estate of Fluker, supra; Coppola Gen. Contr. Corp. v. Noble House Constr. of NY, 224 A.D.2d 856; Joe Smith, Inc. v. Otis-Charles Corp., supra).

The plaintiff's remaining contentions are without merit.

PRUDENTI, P.J., KRAUSMAN, GOLDSTEIN and SCHMIDT, JJ., concur.


Summaries of

Executive Towers at Lido, LLC v. Metro Construction Services, Inc.

Appellate Division of the Supreme Court of New York, Second Department
Mar 17, 2003
303 A.D.2d 545 (N.Y. App. Div. 2003)
Case details for

Executive Towers at Lido, LLC v. Metro Construction Services, Inc.

Case Details

Full title:EXECUTIVE TOWERS AT LIDO, LLC, appellant, v. METRO CONSTRUCTION SERVICES…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Mar 17, 2003

Citations

303 A.D.2d 545 (N.Y. App. Div. 2003)
756 N.Y.S.2d 461

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