DEWEES MELLOR, INC., Plaintiff, v. MARTIN WEISE AND CLAUDIA WEISE, 88 ASSOCIATES INC., STEVEN M. STRUCHINER, RESOLUTION TRUST CORPORATION, AS RECEIVER FOR STATE SAVINGS F.A., BIORDI & BIORDI ASSOCIATES, INC., AND THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA, Defendants., 1993 U.S. Dist. LEXIS 19299

Summary

The tenants held a proprietary lease and cooperative shares in the apartment, which was improved by the contractor. The mortgagee held a first mortgage on the apartment, and the RTC held a security interest under Article 9 of N.Y. U.C.C. Law. The owner, the mortgagee, and the RTC sought to avoid the contractor's mechanic's lien on the ground that the contractor never received the owner's consent to the improvements made on the apartment. In the alternative, the mortgagee and the RTC sought to establish the priority of their interests. The court held that the tenants had a lienable interest in the apartment and, therefore, that the mechanic's lien could not be held unenforceable solely on the ground that the owner failed to consent to the work. The court then held that the mortgagee's first mortgage had priority over the mechanic's lien under N.Y. Lien Law § 13 because it was filed before the filing of the mechanic's lien. However, the court further held that the RTC's prior-perfected ...