Ferrara v. Peaches Cafe LLC

The Court of Appeals affirmed the Appellate Division order grantingd partial summary judgment against COR Ridge Road Company, LLC (COR), in favor of Angelo Ferrara upholding the validity of a lien placed by Ferrara on COR’s real property, holding that consent, for purposes of N.Y. Lien Law 3, was properly inferred from the terms of the lease agreement between COR and Peaches Cafe LLC and that the Appellate Division appropriately declined to impose a requirement that COR either expressly or directly consent to the improvements.COR entered into a lease agreement to lease space in a retail shopping plaza to Peaches, in which Peaches built and operated a full-service restaurant. Peaches contracted with Ferrara to perform electrical work at the premises. Peaches later closed its business, still owing Ferrara more than $50,000. Ferrara filed a mechanic’s lien against the property, noticing both COR and Peaches. Ferrara then initiated this action seeking to foreclose on the lien. Supreme Court granted COR motion for summary judgment dismissing the complaint, concluding that COR had not consented to the improvements within the meaning of Lien Law 3. The Appellate Division reversed. The Court of Appeals affirmed, holding that consent for purposes of Lien Law 3 may be inferred from the terms of the lease. View "Ferrara v. Peaches Cafe LLC" on Justia Law