GLLLP obtains dismissal of construction claim and discharge of mechanic’s lien

On February 27, 2019, New York Supreme Court Justice Gerald Lebovitz, ruling from the bench, granted in full GLLLP’s motion to dismiss a general contractor’s complaint against GLLLP clients Dinosaur Designs, a downtown retailer based in Australia, and 21 Crosby Street, LLC, the building owner. Agreeing with GLLLP that a mandatory arbitration clause in the AIA contract that the parties used compelled dismissal of the Complaint, the Court struck down the lawsuit. The Court then went on to discharge the mechanic’s lien that the general contractor had filed against the building, based upon established legal authority GLLLP had presented to the Court. Holding that the lien could not be maintained given the general contractor’s failure to meet certain contractual conditions precedent to dispute resolution, the Court granted the motion to discharge the lien. The Court also stated that if any notice of pendency had been filed, it would have to be canceled. A formal Order will follow.

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