New York State Appellate Division Vacates Mechanic Lien Foreclosure Judgment and Dismisses All Claims Against Surety, Property Owner, and General Contractor

A construction materials supplier to a sub-contractor filed mechanics liens and sued our clients the surety, the general contractor and the owner to foreclose the liens, and to recover on payment bond claims.  The plaintiff sought recovery for $1,000,000.  The Supreme Court dismissed all payment bond claims and granted partial judgment on one of the mechanic lien claims. The Appellate Division affirmed dismissal of all payment bond claims and reversed the grant of partial summary judgment on the mechanic lien claim, and remitted the claim to the Supreme Court for trial.  Following trial, the Supreme Court granted judgment for $530,000 to plaintiff on the mechanic lien claim.  On appeal, Patrick M. Reilly obtained a reversal from the Appellate Division, which vacated the judgment on the mechanic lien claim in its entirety, and dismissed all remaining claims in the complaint against our clients. See Peri Formwork Systems, Inc v. Lumbermens Casualty Company, et al., –A.D.3d–, 2013 WL 5995555 (2d Dept. 2013).