Liu v. Carrion

Summary

The Appellate Division, Second Department, affirmed dismissal of the plaintiffs’ complaint challenging a New York City Department of Housing Preservation and Development lien for relocation expenses. The court held that, absent a defect on the face of the lien notice, the lien’s validity must be adjudicated in a foreclosure proceeding rather than through the plaintiffs’ direct action.

Holdings

1. When there is no defect on the face of a notice of lien, disputes regarding the lien's validity must await trial in a foreclosure proceeding; therefore, the complaint seeking a declaration invalidating the lien and enjoining its enforcement was properly dismissed under CPLR 3211(a)(7).

Questions Presented

1. Whether plaintiffs could obtain dismissal of the lien-related action under CPLR 3211(a)(7) when the notice of lien contained no facial defect and the asserted dispute concerned the validity of the lien.
2. Whether the validity of the lien had to be resolved in a foreclosure proceeding rather than in the plaintiffs' pre-foreclosure declaratory and injunctive action.

Disposition

affirmed