Cohen Seglias Attorney Secures Win for Client in New York Lien Law Matter

A New York trial court recently clarified that mediation requirements in construction contracts cannot be used to undermine a subcontractor’s mechanic’s lien rights.

Partner Gary Repke, Jr. represented the subcontractor, Betons Prefabriques Du Lac Inc. (BPDL), in a dispute against Pike Construction Services, Inc, with the support of Associate Giancarlo Mertz (pending admission). BPDL filed a mechanic’s lien after not being fully paid for precast concrete work on a college renovation project. Pike sought to dismiss the lien enforcement lawsuit, arguing that the subcontractor was required to complete mediation before filing suit under the contract.

The court rejected that argument, holding that a mediation clause cannot be enforced if it effectively delays or prevents a subcontractor from filing a lien enforcement action within New York’s one-year deadline. The court recognized that mandatory mediation could otherwise be used to “run out the clock” on a subcontractor’s statutory lien rights.

The decision reinforces New York’s strong public policy protecting mechanics’ liens and confirms that contractual dispute-resolution provisions cannot override those protections. For subcontractors and suppliers, the ruling underscores that lien rights remain enforceable even where a contract includes a pre-suit mediation requirement.