Wednesday, August 4, 2021
Home #ForeclosurepediaNation Pay When Paid Is Illegal Under New York Law

Pay When Paid Is Illegal Under New York Law

Coming on the heels of the transfer in Management of SEAS from Tom Newkirk to Brittany McDonald; in light of the no holes barred Joe Hummel Keystone Property Services fiasco wherein his illegal appointment to the National Association of Mortgage Field Services (NAMFS) Board of Directors led to the now infamous policy of charging back Members of Labor whom no longer desire to work for he and Derek Gordon, Foreclosurepedia decided to put together just a little bit on Pay When Paid.

We hold that a pay-when-paid-provision which forces the subcontractor to assume the risk that the owner will fail to pay the general contractor is void and unenforceable as contrary to public policy set forth in the Lien Law § 34.


Since the year 1897 the Legislature has recognized the need to afford protection to those who furnish work, labor and services or provide materials for the improvement of real property. Throughout the succeeding years changes in the law have been enacted to clarify, enlarge and perfect the right of those who improve real property to be paid. The Lien Law has been the sole vehicle through which such interests may gain a measure of protection * * *. It has become prevalent in the construction industry to require contractors, subcontractors, materialmen and laborers to sign contracts or *157 subcontracts containing clauses which waive the right of the signator to file or enforce his mechanic’s [sic] lien. This legal barrier is thus imposed long before any work is performed or materials furnished. The surrender of such protective rights as a prerequisite to obtaining a contract or subcontract is repugnant, against public policy and should be void” (Mem of Senator Donovan, L 1975, ch 74, 1975 NY Legis Ann, at 341).

Subcontractors may enforce their mechanics’ liens against the property specified in the notice of lien and any person liable for the debt upon which the lien is founded (Lien Law §§ 24, 41). Consequently, the Lien Law grants the subcontractor an independent right, separate and apart from a general contractor’s remedies, to file and enforce a mechanics’ lien against a person liable for the debt upon which the lien is founded, such as the owner, and the real estate being improved.

In accordance with the concern expressed by the Legislature that those who directly improve real property should be paid, the Lien Law favors subcontractors’ liens over those of the general contractors in the foreclosure of mechanics’ liens against real property. Upon the sale of property on which both subcontractors and general contractors have liens, Lien Law § 56 requires that the sales proceeds be paid to subcontractors ahead of general contractors. Thus, although the subcontractor’s recovery against the owner is limited by the balance due on the general contract, the subcontractor’s right to recover is not in subrogation to the general contractor’s rights.

I am not sure how much clearer I might be. The reality is that Eric Miller, the Executive Director of NAMFS and his darling Adriana Farelo-Fernandez the Vice President of NAMFS down in Miami – Dade, continue to be supportive of illegal and unconstitutional contracts — no other way I can see it as they keep these fuckers on as Members in Good Standing within NAMFS — which their Membership roll out daily across state lines, using electronic means in the furtherance of artifices and schemes as I see it. And how about Eduardo San Roman? He and his dainty Lee Mertins all getting down with their 24 Asset Management and Assero only to loose Awards soon to be released.

While Mertins, et al., may have thought they took one for the team and half a dozen others down at the Blue Oyster Bar, the reality is that the day of reckoning is soon at hand for San Roman and his South Florida providers with respect to credit card receipts which conceivably tell a tremendous tale. Odd, as I still am unable to understand precisely how a Latin American woman would ever approve of having a limp wrist run the ship. Neither here nor there as I am merely opining upon the tragedy of a marriage when quiet questions are asked on the pillow at 0308 AM. You see, at that hour of the morning, the cold bead of sweat tracks along the forehead, even with the AC cranking, and the asshole puckers up so tight you can’t get a stick pin through it.

Rebellion is what NAMFS is demanding. No two ways about it. This is the Bully on the Block stealing young children’s lunch money. And I foresee a showdown in the Judiciary soon for these financial terrorists!

To expound just a bit on my Opinions, fuck Eric Miller. Fuck Eric Miller, fuck the NAMFS Board of Directors along with the rest of the NAMFS Membership whom continue to thumb their collective noses at the Rule of Law. More on point, how dare these maggots hide behind the law and scurry for its protection, the very same protection that they refuse to accord Members of Labor?! Don’t like my Opinion? Pay Labor. Pay Labor and obey the very same Law that the rest of us have to! Explain to Labor why you refuse to give Jay “Gay” Goscinski’s Contact Information for litigation. Perhaps refuse is a harsh word. You reached out to him to demand answers about his participation in Mediation, why not call Gay and say that NAMFS is done with the bullshit?! Explain why Home Star Property Solutions was given carte blanche at NAMFS Fraud Fests and yet is today financially insolvent? How about the former and disgraced NAMFS Secretary Heather Berghorst whom completed HER FUCKING SECOND BANKRUPTCY; IS COURT ORDERED TO PAY MEMBERS OF LABOR; AND IS STILL BEING SUED BY FIFTH THIRD BANK?! Yeah, how does the NAMFS Board of Directors explain elevating a woman like that; a woman whom defrauded nearly a MILLION DOLLARS from Members of Labor, still remaining as a Member in Good Standing in NAMFS?!

The Question of Law which will present in the near future with respect to the bankruptcies which will flood over the Industry is this: Whether the alleged transfer of assets of an entity owned by the Defendant subject to the Plaintiff’s security interest constituted conversion under law, rendering any damages suffered by the Plaintiff non-dischargeable pursuant to 11 U.S.C. § 523(a)(6).

We are going to go for the throat in the coming weeks with respect to those firms whom are financially insolvent and yet still allowed to defraud Members of Labor by their Parent Order Mills. Respondeat Superior is going to become a household term going forward. I mean look at NAMFS all back of the bus and shit. Miller should have taken the Plea Deal in the beginning; Miller’s fucking NAMFS Members should have paid me my $82 they owed me in grass cuts in 2012. Yeah, that’s right. Many of you didn’t know the Rest of the Story. See, fraud would’ve been alive and well had Miller simply gotten off his High Horse. Miller thought I was bluffing; Miller bet the House; and now Miller rolled snake eyes. And now look at NAMFS. Look at the miserable shell of what once was a stoic organization. NAMFS … subjugated to hocking their wares in the town courtyard with the court jester.

Paul Williams
Linux addict buried deep in the mountains of East Tennessee.



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