Enforcing Mechanic’s Lien Does Not Waive Right to Arbitrate

On May 16, 2022, Justice Emerson of Suffolk County Commercial Division issued a decision in West Rac Contr. Corp. v. Huntington Vil. Hotel Partners, LLC, 2022 NY Slip Op. 22154, holding that enforcing a mechanic’s lien does not waive the right to arbitrate, explaining:

The record reflects that the parties expressly agreed to a dispute-resolution procedure that includes arbitration, which is strongly favored in New York.

Contrary to HVHP’s contentions, the plaintiff did not waive its right to arbitration by commencing this action. A plaintiff’s right to file and enforce a lien under the Lien Law does not vitiate the parties’ agreement to arbitrate contractual disputes. The commencement of an action to foreclose a mechanic’s lien is in the nature of an effort to preserve the status quo pending arbitration and does not constitute a waiver of the contractual right to resolve the dispute in arbitration.

(Internal citations omitted).

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