Sunday, September 9, 2012

The Lien Law Section 38 Demand for Itemized Statement

Every so often someone will receive a mechanic's lien and say "I have no idea what this is."  Well, after you figure out that it is a mechanic's lien you have to what the lien is for.  Luckily, Lien Law Section 38 allows an owner or a general contractor that has received a mechanic's lien to serve a demand for an "itemized statement."  The lienor must then respond, within five days, by providing the name of the entity that it hired, a description by line item of the labor and materials provided and the cost of each line item.  If the lienor does not respond, a motion to compel a response can be filed through a special proceeding in Court.  If the lienor still will not respond then the lien can be discharged by Lien Law Section 38 upon further application to the Court.

Once the Section 38 demand has been provided, the lienor has locked itself into a position on the claim and the contractor or owner wishing to challenging each lien item and perhaps even pursuing exaggeration damages under Lien Law Section 39 or 39-a.


Vincent T. Pallaci is a partner with the New York law firm of Kushnick Pallaci, PLLC.  With offices in Buffalo and Long Island Kushnick Pallaci provides legal services to the construction industry across the State of New York.

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