Experienced Construction Law Attorney For Collection Actions
Silverberg P.C. is a law firm serving the construction industry in New York City. In every matter, attorney Karl Silverberg applies his extensive construction law experience to protect his clients’ rights and guide them to a successful outcome.
Mr. Silverberg handles cases involving claims for money damages. Mr. Silverberg’s goal is to achieve either a favorable settlement or a judgment in the client’s favor. This involves addressing any defenses and counterclaims. Once a judgment is obtained, the next step is to find assets to satisfy the judgment. This can involve foreclosing on real estate, selling personal property, garnishing wages, transferring rights to receivables and restraining bank accounts.
Providing Solutions For Subcontractors And Suppliers
Subcontractors and suppliers have multiple remedies to help preserve their right to payment. These rights can include mechanic’s liens on private and public projects, payment bond rights and trust fund rights. Compliance with the statute of limitations is necessary to preserve these rights. At Silverberg P.C., we take the steps to secure all available remedies to maximize clients’ opportunity to recover money damages.
A Broad Range Of Payment Remedies
The firm uses several available remedies to help resolve collection needs, including:
- Mechanic’s liens: A private mechanic’s lien attaches to the property improved. A mechanic’s lien foreclosure action is required to obtain payment. In such an action, the contractor proves their right to payment, and then the property is sold to satisfy the debt. Subcontractors and suppliers must be aware of the “lien fund” concept. Once a property owner has paid the general contractor (GC), the property owner is relieved of liability. This means it is important that the subcontractor file the lien as early as possible when there are still funds due to the GC.
- Public improvement payment bonds: Most public improvement projects require the general contractor to procure a payment bond to protect subcontractors and suppliers. Subcontractors must comply with an additional 120-day notice requirement.
- Trust fund statute (Lien Law Art. 3-A): A general contractor (GC) who receives payment from an owner has a fiduciary duty to hold such funds for payment to the GC’s subcontractors and suppliers. As an unpaid subcontractor or supplier, you can potentially enforce the debt directly against a GC’s corporate officers for breach of his or her fiduciary duty.
- Prompt payment statute: New York has a prompt payment statute. An unpaid subcontractor working on a private project valued at more than $150,000 is entitled to receive a higher rate of interest than standard unpaid debts.