Waterworks Operating Co., LLC v. 514 W. 24th Owner LLC (Mechanic's-Lien and Breach-of-Contract Judgment Partly Vacated on Appeal)

New York's Appellate Division, First Department, on October 15, 2026 affirmed liability but vacated a roughly $1.4 million mechanic's-lien and breach-of-contract judgment that bathroom-fixtures supplier Waterworks Operating Co. won against 514 West 24th Owner LLC over unpaid materials delivered to a Chelsea redevelopment project. The court rejected the Owner's argument that an unauthorized construction manager's change orders could not bind it, but found Waterworks' proof of $237,069 of the claimed damages improperly relied on a reply-only affidavit, and remitted the case to Supreme Court to recalculate damages.

Why it matters

The ruling is a reminder to commercial developers and contractors that winning on liability in a mechanic's-lien or construction-payment dispute does not guarantee the damages figure survives appeal if any portion of the proof was submitted at the wrong procedural moment. It also signals that an owner's silent acceptance of materials delivered under a change order can ratify that change order even where a construction manager arguably lacked authority to approve it under the governing agreement.

Case timeline · 3 entries Latest: October 15, 2026 — First Department affirms liability, vacates the judgment, and remits for recalculation of damages

More construction defect matters

• CFS Enterprises, Inc. v. CG & J Realty, LLC (Queens Mechanic's Lien Bond Dispute)October 14, 2026 · Ruling Issued
• GSD Contracting, LLC v. All American Builders & Debris Removal, Inc.: Florida Appeals Court Affirms $71,582.98 Retainage After Mold Dispute on Hotel ProjectOctober 14, 2026 · Ruling Issued
• 5 Beekman Property Owner, LLC v. Henick-Lane, Inc.: Owner Ordered to Return $850,000 Insurer Paid on a Settlement That Never ClosedOctober 6, 2026 · Ruling Issued
• Four Mile Capital LLC v. Reynolds South Tower LLC (River's Edge at Manchester Construction-Defect Fraud Suit)August 7, 2026 · Pending
• Wardman Tower Condo Assn. v. JBG Smith Properties ($356M Treble-Damages Construction Defect Judgment)July 31, 2026 · Ruling Issued

Other matters in New York

• First Department Affirms $1.2 Million Jury Verdict for Preschool Tenant Against Bohemian Brethren Presbyterian Church Over Uncleared Building ViolationsOctober 13, 2026 · Ruling Issued
• In re AZ 175th Street LLC: Queens Mixed-Use Owner Files Second Chapter 11 After First Case Was Dismissed With a Refiling BarOctober 10, 2026 · Filed
• Computershare Trust (BMO 2024-5C5) v. Starwood Mortgage Capital: $46.85M CMBS Loan Repurchase Suit Removed to Federal Court Over Undisclosed Senior LienOctober 9, 2026 · Pending
• Wilmington Trust v. Stradtman Park, LLC: Fourth Department Upholds Trial Court's Cut to CMBS Special Servicer's Foreclosure Fees and InterestOctober 9, 2026 · Ruling Issued
• Microsoft v. JLL: Tenant Sues Project Manager for Defense and Insurance Coverage Over Forklift Injury During 122 Fifth Avenue Office Build-OutOctober 9, 2026 · Filed

Recently added

• Odom v. Mall of Louisiana LLC (Wrongful-Death and Premises-Liability Suit Over Mall Food Court Shooting)October 7, 2026 · Filed
• Orchard BJK Company, LLC v. Coolbaugh Township Board of Supervisors (Stormwater-Ordinance Challenge to Warehouse Buffer Requirements)October 15, 2026 · Ruling Issued
• Zecorra Enterprises, LLC v. Redford Township (Commercial Property Tax Valuation Appeal)October 14, 2026 · Ruling Issued
• CFS Enterprises, Inc. v. CG & J Realty, LLC (Queens Mechanic's Lien Bond Dispute)October 14, 2026 · Ruling Issued
• Rubenstein et al. v. Millrose Properties, Inc.: Investors Sue Lennar Land-Bank Spinoff Over Undisclosed Single-Family Rental BusinessOctober 9, 2026 · Filed

CREdocket summarizes public court records and reporting; see our sourcing standards and corrections log. Not legal advice. Facing something similar? Contact us.