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Landlord & Tenant
Tenant's Contractor Has Lien Against Landlord's Interest
Ferrara v. Peaches Café LLC NYLJ 11/21/18, p. 25, col. 5. Court of Appeals (Opinion by Wilson, J.)
In an action to foreclose a mechanic's lien, landlord appealed from the Appellate Division's reversal of Supreme Court's dismissal of the complaint. The Court of Appeals affirmed, holding that landlord's direct consent to work performed for a tenant is not necessary to sustain a mechanic's lien on landlord's premises.
Landlord leased space to tenant in a retail shopping plaza for a 10-year term. The lease required tenant to build and operate a restaurant on the premises, and required tenant to retain contractors, including electrical contractors, and to provide landlord with detailed plans and specifications. Landlord retained the right to approve those plans, and to make modifications. Tenant contracted with contractor to perform electrical work on the premises. Contractor performed the work satisfactorily, but tenant owed contractor more than $50,000 when tenant closed its restaurant. Contractor then filed a mechanic's lien against the property, providing notice to both landlord and tenant. Two years later, when the lien had not been discharged, contractor brought this action to foreclose on the mechanic's lien. Supreme Court granted landlord's motion to dismiss, but the Appellate Division reversed and granted summary judgment to contractor. Landlord appealed.
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