23 N.Y.3d 416 (2014)

A mechanic’s lien can be amended to correct a misnomer of the property owner, where the true owner and listed owner are closely related, the true owner consented to the work, and no third party would be prejudiced.

Summary

Vibar Construction Corp. filed a mechanic’s lien on property, mistakenly identifying the owner as Fawn Builders, Inc., when the property was actually owned by Fawn Builders’ sole shareholder, Rigano. The court addressed whether this misnomer invalidated the lien. The Court of Appeals held that the misnomer was a correctable misdescription, not a jurisdictional defect, because Rigano and Fawn Builders were closely related, Rigano consented to the work, and no third party was prejudiced. The court emphasized a liberal construction of the Lien Law to protect those providing labor and materials, permitting amendments that do not prejudice third parties, and require a close relationship between the listed and actual owner.

Facts

Vibar Construction Corp. (Vibar), owned by Vignogna, contracted with Fawn Builders, Inc. (Fawn), owned by Rigano, for construction work. After a dispute over payment for constructing a common driveway, Vibar filed a mechanic’s lien on the property. The lien incorrectly stated that Fawn owned the property, when Rigano, Fawn’s sole shareholder, was the actual owner. Rigano had acquired title to the property through a non-arm’s-length transfer from Fawn. Vibar sought to amend the lien to reflect the correct owner, but the trial court initially held in favor of Vibar, finding that the notice substantially complied with the Lien Law requirements. However, on reargument, Supreme Court granted Rigano’s petition and discharged the mechanic’s lien. The Appellate Division affirmed, holding that misidentification of the true owner constituted a jurisdictional defect that could not be cured through amendment.

Procedural History

Vibar filed a mechanic’s lien, incorrectly identifying the property owner. The Supreme Court initially held in favor of Vibar and allowed amendment, but later granted Rigano’s motion to discharge the lien, finding a jurisdictional defect. The Appellate Division affirmed the Supreme Court’s decision. The Court of Appeals granted leave to appeal.

Issue(s)

1. Whether the misidentification of the property owner in the mechanic’s lien constituted a jurisdictional defect that could not be amended.

Holding

1. No, because the misnomer was a correctable misdescription and not a jurisdictional defect.

Court’s Reasoning

The court applied a liberal construction of the Lien Law, emphasizing its purpose to protect laborers and materialmen. The Court referenced Lien Law § 23 which states, “substantial compliance . . . shall be sufficient for the validity of a lien and to give jurisdiction to the courts to enforce the same” and Lien Law § 9 (7) stating, “a failure to state the name of the true owner . . . or a misdescription of the true owner, shall not affect the validity of the lien.” The Court found that the misidentification of the owner was a misdescription, not a jurisdictional defect, because Rigano and Fawn were closely related (Rigano was the sole shareholder), Rigano had consented to the construction work (as demonstrated by the contract), and no third party would be prejudiced. The Court distinguished between cases of misdescription and misidentification, the former being curable by amendment, the latter invalidating the lien. The court cited cases where amendment was permitted when there was a close relationship between the listed and actual owner. The Court quoted from Gates & Co. v. National Fair & Exposition Assn. that “it was not the legislative intent to give a lien upon the property through the filing of any notice describing it; it was intended that such a lien should be acquired as against the title or interest of the person party to or assenting to the agreement under which the work was done.”