Willfully Exaggerated Mechanic's Liens: Risks and Damages

Updated September 7, 2026. A mechanic's lien should state a supportable amount, with payments and credits properly accounted for. Deliberately inflating a lien to gain negotiating pressure can jeopardize the lien and expose the claimant to damages.

Willfulness matters

Lien Law § 39 provides for a lien to be declared void when a court finds willful exaggeration in the proceedings described by the statute. A disputed invoice or an honest calculation error is not automatically intentional exaggeration. The evidence supporting the amount and the claimant's explanation matter. See, for example, the discussion in Ferran Enterprises, Inc. v. Cauldwell-Wingate Co., Inc.

The statute does not provide automatic treble damages

When the conditions of § 39-a are met and the court declares a lien void for willful exaggeration in an enforcement action or proceeding, recoverable damages include the proven exaggerated amount, reasonable attorney's fees incurred in securing discharge, and the qualifying bond premium or interest on a deposit used to discharge the lien.

For example, if a court finds that a $50,000 lien deliberately includes $30,000 beyond the $20,000 actually due, the exaggeration component is $30,000, with other recoverable statutory items assessed separately. Section 39-a does not automatically triple that $30,000. A separate theory of liability would require its own legal basis and proof.

Build the calculation before signing the notice

• Reconcile invoices, approved and disputed changes, payments, credits and retainage.
• Keep supporting labor, delivery and project records for each component.
• Separate lienable work and materials from other contract claims; do not simply insert the entire unpaid contract price when work remains unperformed.
• Identify uncertain items for legal review, including specialized materials and disputed damages.
• Have someone check the arithmetic and supporting records before the notice is verified.

If an error is discovered, obtain advice promptly about amendment, discharge and any remaining deadlines. Removing or reducing a lien does not answer every issue in an existing dispute.

Kushnick Pallaci PLLC's resources on itemizing mechanic's liens and lien enforcement and defenses explain related issues.

This article provides general information. Whether a particular lien is willfully exaggerated depends on the evidence and procedural posture.