Legislation
SECTION 201-A
Proceeding to determine validity of liens
Lien (LIE) CHAPTER 33, ARTICLE 9
§ 201-a. Proceeding to determine validity of liens. Within ten days
after service of the notice of sale, the owner or any person entitled to
notice pursuant to section two hundred one of this article may commence
a special proceeding to determine the validity of the lien. The special
proceeding may be brought in any court which would have jurisdiction to
render a judgment for a sum equal to the amount of the lien. If the
owner or any such person shall show that the lienor is not entitled to
claim a lien in the property, or that all or part of the amount claimed
by the lienor has not been properly charged to the account of such owner
or such person, or, as the case may be, that all or part of such amount
exceeds the fair and reasonable value of the services performed by the
lienor, the court shall direct the entry of judgment cancelling the lien
or reducing the amount claimed thereunder accordingly. If the lienor
shall establish the validity of the lien, in whole or in part, the
judgment shall fix the amount thereof, and shall provide that the sale
may proceed upon the expiration of five days after service of a copy of
the judgment together with notice of entry thereof upon the owner or
such person, unless the property is redeemed prior thereto pursuant to
section two hundred three of this article. If the lien is cancelled, the
judgment shall provide that, upon service of a copy of the judgment
together with notice of entry thereof upon the lienor, the owner or such
person shall be entitled to possession of the property.
after service of the notice of sale, the owner or any person entitled to
notice pursuant to section two hundred one of this article may commence
a special proceeding to determine the validity of the lien. The special
proceeding may be brought in any court which would have jurisdiction to
render a judgment for a sum equal to the amount of the lien. If the
owner or any such person shall show that the lienor is not entitled to
claim a lien in the property, or that all or part of the amount claimed
by the lienor has not been properly charged to the account of such owner
or such person, or, as the case may be, that all or part of such amount
exceeds the fair and reasonable value of the services performed by the
lienor, the court shall direct the entry of judgment cancelling the lien
or reducing the amount claimed thereunder accordingly. If the lienor
shall establish the validity of the lien, in whole or in part, the
judgment shall fix the amount thereof, and shall provide that the sale
may proceed upon the expiration of five days after service of a copy of
the judgment together with notice of entry thereof upon the owner or
such person, unless the property is redeemed prior thereto pursuant to
section two hundred three of this article. If the lien is cancelled, the
judgment shall provide that, upon service of a copy of the judgment
together with notice of entry thereof upon the lienor, the owner or such
person shall be entitled to possession of the property.