Reviewed September 7, 2026.
Chris Keefe Builders, Inc. v. Hazzard, 71 AD3d 1599 (4th Dept 2010), arose from two renovation contracts. Only the second contained an arbitration clause. The contractor filed a $264,045.09 mechanic’s lien and later obtained an arbitration award of $122,606.82.
After the order compelling arbitration, the homeowners defaulted on an amended complaint alleging fraudulent inducement of the second contract. Those resulting admissions supplied new evidence. The appellate court granted renewal, vacated the order compelling arbitration, and denied removal of the stay of enforcement of the arbitration award.
The mortgage issues remained disputed
The lender relied on a letter purportedly from the contractor saying the lien had been paid and would be removed. The contractor claimed the letter was forged. Factual questions about the lender’s knowledge of the lien, authorship of the letter and reasonable detrimental reliance prevented summary judgment on equitable subrogation and estoppel.
This procedural history does not establish that simply alleging fraud always defeats arbitration. Current disputes require analysis of the agreement, the particular challenge, governing state or federal law, and whether the court or arbitrator decides the issue. Likewise, the decision did not finally resolve lien priority. Verify satisfaction and discharge documents directly and preserve the complete closing and payment record.
Kushnick Pallaci PLLC assists clients throughout New York with construction arbitration and related litigation. Contact 631-752-7100 or vtp@kushnicklaw.com.
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