Matter of 170 W. End Ave. Owners Corp. v. Centennial El. Indus. Inc.

Summary

The Appellate Division, First Department, affirmed orders extinguishing Centennial Elevator Industries Inc.'s mechanic's lien and exonerating the bond securing it. The court held that Centennial was not entitled to substitution of counsel or vacatur of its default because it failed to provide a reasonable excuse for not appearing, and the lien had expired by operation of law when Centennial failed to foreclose or obtain an extension within one year.

Holdings

1. Centennial was not entitled to a stay of the proceedings or substitution of counsel under CPLR 321(c) because its outside counsel died before commencement of the proceeding and therefore had never appeared in the action.
2. Supreme Court properly denied vacatur of Centennial's default because Centennial failed to provide a reasonable excuse for not appearing or requesting an adjournment before the response deadline.
3. The mechanic's lien expired by operation of law because Centennial neither commenced a foreclosure action nor filed an extension within one year, and a lienor may not foreclose on or extend an expired lien.
4. Vacatur or extinguishment of the lien and exoneration of the bond were appropriate because Centennial defaulted without a reasonable excuse and the lien had expired by operation of law.

Questions Presented

1. Whether Centennial was entitled to a stay of the proceedings and substitution of counsel under CPLR 321(c) because its outside counsel had died before commencement of the proceeding.
2. Whether Centennial established a reasonable excuse warranting vacatur of its default.
3. Whether Centennial could foreclose on or extend the mechanic's lien after the one-year statutory period had expired.
4. Whether extinguishment of the lien and exoneration of the bond were proper.

Disposition

affirmed