Pelc v. Berg: Willful Lien Exaggeration and Slander of Title Are Different Claims

Reviewed September 7, 2026.

In Pelc v. Berg, 68 AD3d 1672 (4th Dept 2009), the court upheld a finding of willful exaggeration based on deliberate inflation, rather than an honest mistake or genuine contract dispute. It also upheld fees for defending against and securing discharge of the lien, rather than fees for obtaining affirmative relief.

The court separately dismissed the homeowners’ slander-of-title counterclaim. On that record, the lien notified others of the contractor’s claim and the required false communication and specially pleaded damages had not been established. That ruling is not blanket immunity for false lien filings.

Check the amount and the evidence

Willful exaggeration can void a lien under Lien Law § 39 and create additional liability under § 39-a when the statutory requirements are met. Losing a payment dispute does not automatically establish intent.

Reconcile contract work, supported extras, payments and credits before filing. Keep the calculation and supporting documents. Owners challenging a lien should distinguish errors, disputed entitlement and evidence of deliberate inflation, and evaluate any separate tort claim on its own elements.

Kushnick Pallaci PLLC assists clients throughout New York with mechanic’s lien exaggeration disputes. Contact 631-752-7100 or vtp@kushnicklaw.com.

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