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Does an Arbitration clause in NY preclude someone from filing a lien?

New York

We filed a claim in NY. It is being challenged on the basis that we did not go to arbitration first. Our contract terms have an arbitration clause for remedying disputes. On your resources, I noticed that claimants in NY cannot waive their lien rights in a contract. Does the arbitration clause in NY amount to a no lien clause?

2 replies

Jan 6, 2021

by filing a claim, do you mean that you filed a notice of mechanic's lien? you may do that even with an arbitration clause in the contract. Without boring you will a lot of procedure, where you have an arbitration clause and file a notice of mechanic's lien, you arbitrate the amount due, and then foreclose based on the award. YOu may file the foreclosure action and stay pending the arbitration. 

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Jan 6, 2021
The answer is “no” -- an arbitration clause does not preclude the filing of a lien in NY.
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