Pizzarotti, LLC v. FPG Maiden Lane LLC

Summary

The Appellate Division, First Department reversed orders reducing a mechanic's lien filed by Pizzarotti, LLC and reinstated the lien. The court held that a court lacks inherent power to vacate, modify, or discharge a notice of lien under New York Lien Law § 19(6) absent a defect appearing on the face of the lien, and that factual issues concerning payment waivers required resolution at trial.

Holdings

1. A court has no inherent power to vacate, modify, or discharge a notice of lien under Lien Law § 19(6) when there is no defect on the face of the lien; disputes concerning the lien's validity must await trial.
2. The evidence of the parties' course of conduct raised an issue of fact as to whether the waivers released Pizzarotti's payment claims, precluding resolution of the lien dispute on the motion.

Questions Presented

1. Whether a court may vacate, modify, or discharge a mechanic's lien under Lien Law § 19(6) when no defect appears on the face of the lien.
2. Whether evidence concerning the parties' course of conduct created an issue of fact regarding whether payment-application waivers released Pizzarotti's payment claims.

Disposition

reversed