Reviewed September 7, 2026.
Filing a mechanic’s lien does not waive a contractual arbitration right. But coordinating arbitration with lien deadlines may require court relief; an arbitration demand alone should not be assumed to preserve the lien.
In Cava Construction & Development, Inc. v. DAB Group LLC, 2010 NY Slip Op 32993(U), the court applied Lien Law § 35 and granted relief concerning a § 59 foreclosure demand while arbitration proceeded. Its order stayed the foreclosure requirement until thirty days after the arbitrator’s decision. That was a specific court order, not an automatic statutory extension triggered by requesting arbitration.
Preserve the security and choose the proper procedure
Review § 17, any § 59 demand, the contract and the status of any bond. Depending on the case, timely commencement of foreclosure followed by a stay may preserve the security while arbitration resolves the contractual dispute. Identify necessary parties and any required notice of pendency or statutory exception.
Section 35 makes an arbitration award on value or price conclusive between its parties in foreclosure, but does not automatically establish lien validity or bind nonparties. If the award is unpaid, further enforcement steps may be required. Obtain an appropriate order or enforceable arrangement before allowing a deadline to pass or discontinuing a preservation action.
Related services include mechanic’s lien foreclosure.
Kushnick Pallaci PLLC assists clients throughout New York with construction arbitration. Contact 631-752-7100 or vtp@kushnicklaw.com.
Attorney Advertising. General information, not legal advice.
It nice to see a positive, reasonable outcome in the matter you discuss. Georgia law (and every state with which I am familiar) is very clear about the deadlines in which liens and lien foreclosure actions must be filed. Arbitration and mediation can be a helpful avenue, but their helpfulness would diminish if they could be used to rid the owners' of lien claims.
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