Reviewed September 7, 2026.
In MCC Development Corp. v. Perla, 81 AD3d 474 (2011), the First Department affirmed dismissal of contract-related claims, discharge of a mechanic's lien and cancellation of a notice of pendency. The contractor had not completed the required initial architect decision and mediation before litigation.
The defendants' protective court filings did not waive the contractual dispute process. The decision demonstrates the consequences of starting an enforcement action before satisfying applicable conditions precedent.
Coordinate the contract process with statutory deadlines
The opinion addresses the premature litigation before it; it should not be read as permission to let a lien filing or preservation deadline expire while mediation proceeds. Review the contract's current edition and amendments, required decision maker, mediation steps and any exceptions.
Separately preserve a lien under the applicable provisions of Lien Law § 17 for private improvements or § 18 for public improvements. Available extensions depend on the lien and timely compliance. A court does not automatically revive an expired lien merely because ADR is pending. Obtain advice before choosing dismissal, a stay or an extension application.
Kushnick Pallaci PLLC assists clients throughout New York with construction arbitration and dispute resolution. Contact 631-752-7100 or vtp@kushnicklaw.com.
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