Section 59 Foreclosure Demands
New York Lien Law Section 59 provides:
A mechanic’s lien notice of which has been filed on real property or a bond given to discharge the same may be vacated and cancelled or a deposit made to discharge a lien pursuant to section twenty may be returned, by an order of a court of record. Before such order shall be granted, a notice shall be served upon the lienor, either personally or by leaving it as his last known place of residence, with a person of suitable age, with directions to deliver it to the lienor. Such notice shall require the lienor to commence an action to enforce the lien, within a time specified in the notice, not less than thirty days from the time of service, or show cause at a special term of a court of record, or at a county court, in a county in which the property is situated, at a time and place specified therein, why the notice of lien filed or the bond given should not be vacated and cancelled, or the deposit returned, as the case may be. Proof of such service and that the lienor has not commenced the action to foreclose such lien, as directed in the notice, shall be made by affidavit, at the time of applying for such order.
Once Lien Law §59 has been invoked, litigation is inevitable. An owner that serves the demand to foreclose will proceed with litigation either to defend the foreclosure action or to pursue a special proceeding to cancel the mechanic’s lien under Lien Law Section 59. A contractor that has received a demand to foreclose under Section 59 will either ignore the demand and lose its lien rights or commence a foreclosure action to enforce the lien within the next 30 days. Because Lien Law §59 inevitably leads to litigation, utilizing Section 59 almost always means it’s time to hire an attorney.
Kushnick Pallaci’s experienced lien law attorneys routinely serve and respond to Section 59 demands in counties across the State of New York. Because we do it all the time, we know and understand the process and can immediately help you develop the right strategy for handling Lien Law Section 59. Our lien law lawyers have extensive experience representing owners in Section 59 proceedings and in representing contractors in foreclosure proceedings brought about in response to Lien Law Section 59.
If you are an owner and want to challenge a mechanic’s lien, or if you received a demand pursuant to Lien Law Section 59 and need to respond, contact one of our experienced lien law attorneys now for a free initial consultation.