HOW TO CHALLENGE AND REMOVE A LIEN IN NYC?

[olenathk]

Hi everyone,

I rented construction equipment which broke a few days later. After I returned it, the store accused me of breaking the equipment and filed a lien against my LLC forcing me to pay for the damage. I want to remove the lien and read online that I can file a petition under Lien Law Section 19 to have the lien discharged. What's the name of this petition/form and where can I file it? Am I correct?

The lien was filed in Brooklyn, NY, so I need to go to a court in Brooklyn or should I go to the Brooklyn clerk's record office? Also, does anyone have an idea of how much the whole process will cost me? I feel so angry because I was not at fault at all and now I have to spend money to prove it. Please advise!

 

[not2cleverRed]

Hi everyone,

I rented construction equipment which broke a few days later. After I returned it, the store accused me of breaking the equipment and filed a lien against my LLC forcing me to pay for the damage. I want to remove the lien and read online that I can file a petition under Lien Law Section 19 to have the lien discharged. What's the name of this petition/form and where can I file it? Am I correct?

The lien was filed in Brooklyn, NY, so I need to go to a court in Brooklyn or should I go to the Brooklyn clerk's record office? Also, does anyone have an idea of how much the whole process will cost me? I feel so angry because I was not at fault at all and now I have to spend money to prove it. Please advise!

You rented equipment that was not broken.

You returned the rented equipment, broken.

Would that be correct?

Are you saying that your LLC paid for the damage and the lien is still there?

 

[olenathk]

You rented equipment that was not broken.

You returned the rented equipment, broken.

Would that be correct?

Are you saying that your LLC paid for the damage and the lien is still there?

It broke while I was using it but not due to my negligence. When one rents a car and the engine breaks, one should not be forced to pay for the engine. I did not pay. I was about to reach a middle ground with the store when I discovered that a lien was filled.

 

[Zigner]

It broke while I was using it but not due to my negligence. When one rents a car and the engine breaks, one should not be forced to pay for the engine. I did not pay. I was about to reach a middle ground with the store when I discovered that a lien was filled.

That's not necessarily true - it all depends on your contract. It's entirely possible to be responsible for mechanical breakdowns.

 

[not2cleverRed]

It broke while I was using it but not due to my negligence. When one rents a car and the engine breaks, one should not be forced to pay for the engine. I did not pay. I was about to reach a middle ground with the store when I discovered that a lien was filled.

Actually, that's not true: it depends on why the car had a failure, and if you were adequately insured.

If the car ceases to work because of an internal failure, not due to improper driving, what you say is true.

However, if you get into an accident, you may be liable. Most people carry insurance so that this is not an issue.

When you rented the equipment, you signed an agreement. Read the small print of the agreement that you signed. There was probably language to the effect that you agree that the equipment is in good working order, and that you will return it in good working order or else pay to repair/replace.

Does your LLC have insurance? Was insurance available as part of the rental agreement - insurance that you waived, perhaps?

Additionally, it is unclear to me why you are so certain that the construction equipment broke all on its own, not due to your use/misuse.

 

[quincy]

Hi everyone,

I rented construction equipment which broke a few days later. After I returned it, the store accused me of breaking the equipment and filed a lien against my LLC forcing me to pay for the damage. I want to remove the lien and read online that I can file a petition under Lien Law Section 19 to have the lien discharged. What's the name of this petition/form and where can I file it? Am I correct?

The lien was filed in Brooklyn, NY, so I need to go to a court in Brooklyn or should I go to the Brooklyn clerk's record office? Also, does anyone have an idea of how much the whole process will cost me? I feel so angry because I was not at fault at all and now I have to spend money to prove it. Please advise!

It sounds like you want to challenge the lien through a Lien Law Section 59 proceeding rather than through a Lien Law Section 19 petition.
https://newyork.public.law/laws/n.y._lien_law_section_59
Have you written to the lien holder challenging the lien?

 

[olenathk]

It sounds like you want to challenge the lien through a Lien Law Section 59 proceeding rather than through a Lien Law Section 19 petition.
https://newyork.public.law/laws/n.y._lien_law_section_59
Have you written to the lien holder challenging the lien?

Oh I do not know anything about Section 59. Now that I am reading about it, I am confused what's the difference between Section 19 and 59. Does this mean that if a judge does not side with me, I will have to pay the entire amount the lienor claims I owe him?

I have not written to the lienor challenging the lien. I only spoke to him after I discovered of the lien because I was in shock. I paid for the rental, had to rent from another place and a week later, the store filed a lien against me for the damage of the equipment.

 

[Litigator22]

It sounds like you want to challenge the lien through a Lien Law Section 59 proceeding rather than through a Lien Law Section 19 petition . . QUOTE]

Clearly were talking about a mechanics lien on real property and not a lien against the LLC.

That said, I don't think the OP is interested in forcing the lienor's hand to commence an action to enforce its lien or have it discharged as matter of law - all as permitted by your Section 59 New York's Lien Law. He is asking how to preempt the lienor by filing an application to discharge the lien under Subparagraph (6) of Section 19 of those laws.

And if it should appear that the rental store's notice of lien is founded on a claim for the alleged damage to the rented equipment, the lienor might have difficulty contesting the OP assertion that the lien fails to relate to any improvements to the real property.

If that is his intention, then his application needs to be made under Section 19 (6) and submitted to an appropriate court. I don't know of any templates of that order. If needed, he'll have to look elsewhere.

 

[quincy]

You could be right, Litigator. The more I read, the less sure I was of my response.

Here is a link to New York's Lien Law:
https://newyork.public.law/laws/n.y._lien_law

 

[olenathk]

Thank you so much! So I need to go to the Kings County Court and ask for that section 19(6) form? Does anyone have any idea of how much filing the form will cost me, or how much hiring an attorney to do that will cost? Any idea? I am trying to google but cannot find any legal fees related to mechanics's liens.

 

[quincy]

Thank you so much! So I need to go to the Kings County Court and ask for that section 19(6) form? Does anyone have any idea of how much filing the form will cost me, or how much hiring an attorney to do that will cost? Any idea? I am trying to google but cannot find any legal fees related to mechanics's liens.

I found no form on a quick search but the court clerk can tell you if one exists.

Attorney costs vary. You will want to call several to find out what they will charge.

Getting the lien discharged is only part of your battle, by the way. You can still be sued over the damage to the rental equipment.

Good luck.

 

[olenathk]

Hi everyone,

I rented construction equipment which broke a few days later. After I returned it, the store accused me of breaking the equipment and filed a lien against my LLC forcing me to pay for the damage. I want to remove the lien and read online that I can file a petition under Lien Law Section 19 to have the lien discharged. What's the name of this petition/form and where can I file it? Am I correct?

The lien was filed in Brooklyn, NY, so I need to go to a court in Brooklyn or should I go to the Brooklyn clerk's record office? Also, does anyone have an idea of how much the whole process will cost me? I feel so angry because I was not at fault at all and now I have to spend money to prove it. Please advise!

Okay, I was wrong when I said that the lienor filed a lien on my LLC. No, the rental company filed a lien on my client's property claiming that I returned the equipment "damaged." The rental company informed me that there was an issue 2 weeks after I returned the equipment. And now the company is forcing me to pay. This is so unfair! Why not inform me that something was wrong the minute I returned the equipment?!?!?! I dont know what to do now! I want to challenge the lien! But how?

 

[quincy]

Okay, I was wrong when I said that the lienor filed a lien on my LLC. No, the rental company filed a lien on my client's property claiming that I returned the equipment "damaged." The rental company informed me that there was an issue 2 weeks after I returned the equipment. And now the company is forcing me to pay. This is so unfair! Why not inform me that something was wrong the minute I returned the equipment?!?!?! I dont know what to do now! I want to challenge the lien! But how?

You could speak to an attorney in your area to discuss your options or you can pay for the damage caused to the equipment.

 

[Litigator22]

Okay, I was wrong when I said that the lienor filed a lien on my LLC. No, the rental company filed a lien on my client's property claiming that I returned the equipment "damaged." The rental company informed me that there was an issue 2 weeks after I returned the equipment. And now the company is forcing me to pay. This is so unfair! Why not inform me that something was wrong the minute I returned the equipment?!?!?! I dont know what to do now! I want to challenge the lien! But how?

As I mentioned earlier I suspect that the rental company will be hard pressed to prove that the alleged damaged to the equipment will support a claim for a mechanic's lien. The reasonable value for the use of the equipment is one thing, but how can it reasonable argue that the damage to that equipment served to improve the client's real property; which is a necessary condition to authorizing such a lien. Or overcome the legal maxim that because they were not recognized at common law the statutes creating such liens must be strictly (meaning narrowly) construed?

HOWEVER, there is another legal principal that tells us that all actions seeking relief from the courts must be brought in the name of the real party in interest. And I don't see how you would have any legal standing to challenge a mechanic's lien on your client's property.

Maybe so, but I don't think so. But talk to your attorney. You may be limited to filing an action for a declaratory judgment with respect to your liability to the rental company.

Lastly, why this fuss over not being informed that there was something wrong with the equipment? You admit to having returned it to the company in a broken condition!

 

[quincy]

As I mentioned earlier I suspect that the rental company will be hard pressed to prove that the alleged damaged to the equipment will support a claim for a mechanic's lien. The reasonable value for the use of the equipment is one thing, but how can it reasonable argue that the damage to that equipment served to improve the client's real property; which is a necessary condition to authorizing such a lien. Or overcome the legal maxim that because they were not recognized at common law the statutes creating such liens must be strictly (meaning narrowly) construed?

HOWEVER, there is another legal principal that tells us that all actions seeking relief from the courts must be brought in the name of the real party in interest. And I don't see how you would have any legal standing to challenge a mechanic's lien on your client's property.

Maybe so, but I don't think so. But talk to your attorney. You may be limited to filing an action for a declaratory judgment with respect to your liability to the rental company.

Lastly, why this fuss over not being informed that there was something wrong with the equipment? You admit to having returned it to the company in a broken condition!

I think the matter could easily be resolved if olenathk would pay for the damage to the rental equipment.