Justice David Schmidt
GPNZ and Atlantis moved for vacatur of a mechanic’s lien filed by PGA Mechanical, and cancellation of a surety bond given to discharge the mechanic’s lien encumbering the subject premises. The parties agreement contained an arbitration clause. PGA ceased work under the agreement over an alleged dispute and filed a mechanic’s lien against GPNZ as owner of the premises. A surety bond was issued by Argonaut Insurance and served on PGA. As a result of the agreement to arbitrate, PGA’s lien foreclosure action was settled by a stipulation of discontinuance contingent on Atlantis’ filing a demand for arbitration regarding the dispute. The court noted under Lien Law §19(4), the filing of a surety bond discharged the mechanic’s lien, thus vacatur of the lien was moot, and denied. Further, as the lien foreclosure action was discontinued, and the parties agreed to go to arbitration, the surety bond was discharged as a surety on a bond given to discharge a mechanic’s lien was only obligated to satisfy a judicially established lien. Once PGA discontinued the lien foreclosure action, defendants’ surety could not longer be compelled to pay an arbitral award out of the surety.
