New York Construction Litigation Attorneys

Muchmore & Associates PLLC represents contractors and developers in litigation, arbitration, and appeals. We litigate claims of breach of contract, lien foreclosure, NY Lien Law Art. 3-A trust diversion, NY Labor Law 220 prevailing wage claims, property damage, and proceedings for access to adjoining properties. We also assist clients in contract negotiations, disputes, employment, insurance, regulatory, and corporate matters.

Construction contracts are riddled with exculpatory clauses, including notice-of-claim requirements, no-damage-for-delay clauses, pay-when-paid clauses, arbitration clauses, liquidated damages clauses, and change order approval processes. The complexity of these contracts makes it all too easy to waive your rights involuntarily. Once waived, seeking to revive your rights based on equitable estoppel or similar grounds is challenging. If you are involved in a construction dispute, you need a lawyer that understands the construction industry and the complex body of substantive and procedural law applicable to it.

Broad Construction Industry Knowledge and Experience

If you are dealing with a construction-related legal issue, our attorneys have almost certainly encountered it, briefed it in court, and seen it play out under various fact patterns. Based on our extensive experience in this field, we can advise you on the best legal strategy. We can also draw from our vast database of briefs and pleadings to present your case efficiently and persuasively to a judge or arbitrator.

Contact Us to Schedule a Free Initial Consultation

Call us at (917) 932-0299 to schedule a free initial consultation if you need assistance with a construction law issue, including the following:

  • Breach of Contract Litigation: It is best to engage an attorney before negotiating a major construction contract. Once a dispute arises, it is essential to retain counsel before the contract is terminated to put your position in writing and ensure you comply with the contract's termination provisions. Where possible, an effort should be made to settle the dispute on reasonable terms. If the adversary is unreasonable, you need a lawyer that will win your case through a pretrial motion where possible and take it to trial where necessary. By retaining a law firm with extensive experience in construction litigation, you maximize the chances of obtaining a favorable settlement or judgment in litigation.

  • Mechanic’s Lien Filing and Foreclosure: In New York, mechanic's liens provide a strong remedy for unpaid contractors and subcontractors. Mechanic’s liens attach to the property and provide a source of recovery. The New York Lien Law sets out detailed requirements for the form and service of mechanic's liens. A lien must be filed within eight months for large construction projects, or four months for single family dwellings, and must be foreclosed or extended within one year of filing. Filing a lien is just the first step and may not be enough to secure payment. Our lawyers can bring a lien foreclosure action to force the sale of the real property if the general contractor or owner fails to issue payment.

  • Vacating Mechanic's Liens: The New York Lien Law provides a number of mechanisms to vacate a mechanic's lien. If you have a bonding line with a surety, the easiest way to discharge a mechanic's lien is to file a lien discharge bond pursuant to Lien Law 19(4). If you do not have a bonding line, you can deposit money into court pursuant to Lien Law 20. In either case, if the lien holder fails to commence a lien foreclosure action, the lien will expire, and litigation will be unnecessary. To expedite the process, you can serve the lienor with a demand to foreclose pursuant to Lien Law 59. If the lienor then fails to commence an action within 30 days, the lien will be vacated. Finally, you can move to summarily discharge a mechanic's lien pursuant to Lien Law 19(6) if the lien is defective on its face.

  • Change Order Disputes: Construction litigation would be much simpler if most cases involved only base contract claims. However, most disputes involve changes to the contract's scope which are disputed and poorly documented. Construction contracts generally provide detailed processes for change order approval. In practice, those procedures are not always followed. In such cases, the party asserting the claim must rely on principles of equitable estoppel and course of dealing, while the party challenging the claim must convince the court to strictly enforce the contract's provisions.

  • Delay Claim Litigation: Delay claims are frequently asserted by both contractors and construction project owners. There is a construction schedule provided in almost every construction contract. If the contractor fails to adhere to the schedule, the owner often asserts a claim for liquidated or consequential damages. Contractors also assert delay claims for increased overhead, insurance, project management costs, and increased materials and labor costs when work is delayed. Many contracts contain no-damage-for-delay clauses, barring recovery by the contractor for sources of delay anticipated in the contract. The firm's lawyers have used such clauses to secure dismissal of seven figure delay claims. They have also negotiated settlements of large delay claims involving public works projects even where such claims might have been barred by a strict interpretation of the contract.

  • Lien Law Art. 3-A Trust Claims: In New York, all funds received by an owner from a bank, by a contractor from an owner, or by a subcontractor from a contractor for the purposes of construction, are considered "trust funds" under Lien Law Article 3-A. Contractors must use such funds to pay valid trust claims defined in Lien Law 71, including payment of workers, subcontractors, suppliers and insurers. Failure to satisfy all trust claims before diverting funds to non-trust purposes can give rise to personal liability on the part of anyone involved. The assertion of claims under Lien Law Art. 3-A provides a means to recover against the individual owners of companies, but can also complicate claims, requiring lawsuits to be brought in the form of a class action on behalf of all trust beneficiaries.

  • Prevailing Wage Litigation: New York Labor Law 220 and the federal Davis Bacon Act require prevailing wages to be paid to workers on public works construction projects. Prevailing wages are established by unions and are often well above the market rate. As a result, unscrupulous contractors often fail to pay them. General contractors on public works projects are strictly liable for underpayments to workers, and often face liability for prevailing wage underpayments by their subcontractors. Our lawyers have defended prevailing wage class actions brought by workers, opposed class certification, and asserted claims against subcontractors that failed to pay prevailing wages on public works projects.

  • Access to Adjoining Property: In New York, it is common for contractors to need access to adjoining properties to make necessary improvements and repairs, such as underpinning of foundations and installation of temporary scaffolding. This is typically done by securing the neighbor's permission and negotiating a license to access their property. Where adjacent property owners are unwilling to grant a license, New York Real Property Actions and Proceedings Law § 881 provides a summary proceeding whereby the contractor can obtain a court-ordered license to access adjoining property.

  • Insurance and Surety Bond Litigation: Where workers or third parties are injured at construction projects, these claims are typically defended by insurance companies under workers compensation or general liability insurance policies. Where insurers disclaim coverage improperly, our lawyers can commence declaratory judgment actions seeking to compel them to provide a defense and indemnification. The firm can also defend the underlying claim directly and seek indemnification from other parties that may be responsible. Our lawyers also prosecute and defend claims against sureties in litigation involving payment bonds, performance bonds and mechanic's lien discharge bonds.

  • Warranties and Construction Defects: Real estate sales contracts and construction contracts in New York frequently include warranties. New York Real Property Law § 462 also imposes obligations on sellers of real estate to make certain disclosures. However, once the seller or contractor has been paid, it can be hard to enforce a warranty without litigation. Particularly with condominium developments, the sponsor often disappears after the last unit is sold and enforcement of contract rights may require litigation. When warranties are breached or construction defects are concealed, our litigation attorneys can compel the breaching party to honor the warranty and correct defects through litigation or the threat of litigation.

  • Contract Drafting and Negotiation: Our attorneys routinely review, draft, and negotiate construction contracts for our clients. We are familiar with standard AIA contract terms, retainage provisions, notice of claim provisions, no-damage-for-delay clauses, liquidated damages clauses, arbitration clauses, pay-when-paid clauses, and other common terms typically encountered in construction contracts. Our attorneys can also assist you in drafting shareholder agreements, operating agreements, real estate purchase contracts, commercial leases, employment contracts, license agreements, settlement agreements, financing agreements, and other contracts.