Cooperatives & Condominiums

First Dept

(memorandum opinion)

In an action to foreclose a mechanic's lien, lienor appealed from Supreme Court's grant of partial summary judgment to former building owner and its bonding company. The Appellate Division affirmed, holding that since the notice of mechanic's lien was filed after a condominium declaration, the lien was invalid because it failed to identify the units affected by the lien.

Lienor filed its lien against the single lot number that had identified the entire building before condominium conversion. The lien was filed, however, after the condominium declaration had been recorded, and after each individual unit had been assigned a separate lot number. As a result Supreme Court granted partial summary judgment to the former building owner, and discharged the lien. Lienor appealed.

In affirming, the Appellate Division emphasized that lienor's post-declaration lien could not be valid against either the condominium units sold to new owners or against the common elements. The court noted that a lien against the common elements cannot be filed without the unanimous consent of the unit owners. Moreover, the court held that lienor was not entitled to amend the notice of lien pursuant to Lien Law section 12-a, because that section applies only to permit amendment of valid notices of lien. In the court's view, the statute could not be construed to revive an invalid notice of lien. As a result, the lien could not even bind units retained by former owner. Accordingly, the court discharged the lien.

Lien Invalid for Failure to Identify Condominium Units

Northeast Restoration Corp. v. K & J. Construction Co

NYLJ 4/3/03, p. 19, col. 1, AppDiv,

First Dept

(memorandum opinion)

In an action to foreclose a mechanic's lien, lienor appealed from Supreme Court's grant of partial summary judgment to former building owner and its bonding company. The Appellate Division affirmed, holding that since the notice of mechanic's lien was filed after a condominium declaration, the lien was invalid because it failed to identify the units affected by the lien.

Lienor filed its lien against the single lot number that had identified the entire building before condominium conversion. The lien was filed, however, after the condominium declaration had been recorded, and after each individual unit had been assigned a separate lot number. As a result Supreme Court granted partial summary judgment to the former building owner, and discharged the lien. Lienor appealed.

In affirming, the Appellate Division emphasized that lienor's post-declaration lien could not be valid against either the condominium units sold to new owners or against the common elements. The court noted that a lien against the common elements cannot be filed without the unanimous consent of the unit owners. Moreover, the court held that lienor was not entitled to amend the notice of lien pursuant to Lien Law section 12-a, because that section applies only to permit amendment of valid notices of lien. In the court's view, the statute could not be construed to revive an invalid notice of lien. As a result, the lien could not even bind units retained by former owner. Accordingly, the court discharged the lien.