New York Law Requires the Filing of Loan Contracts to Establish Priority for Mechanic's Lien Claims

7/12/2010,

Recently, Hahn Loeser obtained summary judgment in favor of The Hayner Hoyt Corporation, establishing the priority of its $3.3 million mechanic's lien claim arising out of renovations to portions of the historic Syracuse Hotel located in downtown Syracuse, New York. Hahn Loeser successfully argued that Hayner Hoyt's mechanic's lien was superior to the earlier recorded $10 million mortgage because the Tel Aviv based mortgage lender failed to comply with specific New York statutory law, which required the recordation of building loan contracts in addition to the mere recordation of the mortgage document.