Leonard Engineering, Inc. v. Zephyr Petroleum Corp.
In an action to foreclose a mechanic's lien, plaintiff Leonard Engineering, Inc. appealed an order that granted defendant New York Paving, Inc.'s motion to discharge the lien and dismiss the complaint, and denied Leonard's cross-motion to amend the lien. Leonard had provided engineering services to defendant Zephyr Petroleum Corporation, which then conveyed the property to New York Paving, Inc. with a trust fund provision in the deed, before Leonard filed its lien. The lien was subsequently filed with an incorrect lot number. The appellate court affirmed the lower court's decision, holding that the lien was ineffective against New York Paving due to the Lien Law § 13 (5) trust fund provision in the deed, which protected the purchaser. Consequently, Leonard's appeal to amend the notice of lien was dismissed as academic.