Speedy Lien, Inc.: Able to resolve the situation and put everyone back to business

Being in the construction industry for more than 30 years, I am aware that landlords and building managers feel anxiety when they are served with a Mechanic's Lien against their property. As they open the envelope, it's not good news that a vendor or a sub-contractor exhausted efforts in being paid for their materials or services and had to protect their interest. For those not aware of what Mechanic's Lien is, a Mechanic's Lien attaches the amount owed by a materialman or contractor that rendered materials and/or labor to the title of a property. The title of the property is now clouded with the amount claimed by the lienor. A few weeks ago, a Speedy Lien client filed a Mechanic's Lien against a building owned by a prominent Manhattan landlord. The building was undergoing extensive renovation. Our client was an electrical supplier that sold materials to a sub-contractor, that was hired by the general contractor. After exhausting efforts in getting paid for their materials, our client owed in the low six figures had no other alternative but to protect their interest and a Mechanic's Lien was subsequently attached to the title. Speedy Lien served the Mechanic's Lien on the owner of the property, the building manager, the general contractor, sub-contractor and the bank that was holding the mortgage on the property (far in excess of the six figure Mechanic's Lien). Within a few days, the building manager reached out to me directly (we have had the pleasure of dealing with each other for more than 20 years) and asked me if I knew any more of the story than what was indicated on the Mechanic's Lien he had in front of him. I was able to get the building manager a copy of the open invoices and delivery tickets, as well as a purchase order from the sub-contractor, that substantiated the electrical supplier's claim. Within a few hours, the building manager and the general contractor had spoken about the situation. As it turned out, the sub-contractor had received a payment from the general contractor and failed to pay the vendor. When broached with the threat of not being permitted to work at the building premises any longer, with current monies owed by the general contractor now being suspended, the sub-contractor agreed to have the current monies owed them paid to the lienor, so the Mechanic's Lien can be removed from the property and everyone could go about their business. The following morning, a check was delivered to our client and we subsequently filed a Satisfaction of Mechanic's Lien. Our client was thrilled, needless to say, that had they not filed their Speedy Lien, the only alternative would have been to commence a lawsuit against their customer, aside from being costly if not resolved quickly. the property manager and general contractor were appreciative of how the situation played out, because each of them, were brought into a situation caused by a sub-contractor's poor business ethics. A few months back, a client who was a commercial leasing broker, had brought together a landlord with space to rent and a tenant, that subsequently signed the lease for a 10-year term and the broker's commission was due payable 90 days from the date of the signing of the lease. The lease was signed by both the landlord and the tenant, the tenant moved in and 90 days later when the broker was looking for her commission, she was getting the runaround and there was no check forthcoming. The broker called me and asked if she could file a Mechanic's Lien against the property for brokerage commissions. I did explain that the law in New York State does protect commercial real estate brokers for commissions earned, provided that the property in discussion was leased for more than 36 months and that 8 months had not elapsed from the day that the lease was signed. Luckily, our client's situation fell within those parameters. Within days, the Mechanic's Lien was filed and served on those parties involved. Our client had no response and we hadn't either, however a few weeks after the filing, an abstract company called me and advised that the property our client had filed a Mechanic's Lien against was in the midst of being sold and the Lien was blocking the sale. I was asked on behalf of our client to provide a payoff figure and within weeks, at the closing, our client was given a check for the amount she was owed for her commission. Had our client continued to wait and not filed a Mechanic's Lien protecting her interest, the property would have been sold and commencing a lawsuit would have been useless. The entity that signed the agreement was subsequently dissolved with no assets following the sale of the building after paying off the mortgages. As I've said for 30 years, there is never a reason to wait to protect what is rightfully yours. On the receiving end of a Mechanic's Lien, when a landlord or building manager reaches out to us for assistance, Speedy Lien is able to resolve the situation and everyone is able to go back to business. Mark Nash is the president/CEO of Speedy Lien, Inc., Mineola, N.Y.