N.Y. LIE Law § 56

§ 56. Preference over contractors. When a laborer, subcontractor or\nmaterial man shall perform labor or furnish materials for an improvement\nof real property or for a public improvement, for which he is entitled\nto a mechanic's lien, the amount due to him shall be paid out of the\nproceeds of the sale of such property or out of the moneys of the state\nor public corporation applicable to the construction or demolition of\nthe public improvement, under any judgment rendered pursuant to this\narticle, before any part of such proceeds is paid to the person for whom\nhe has performed such labor or furnished such materials. If several\nnotices of lien are filed for the same claim, as where the contractor\nhas filed a notice of lien, for the services of his workmen, and the\nworkmen have also filed notices of lien, the judgment shall provide for\nbut one payment of the claim which shall be paid to the parties entitled\nthereto. Payment voluntarily made upon any claim filed as a lien shall\nnot impair or diminish the lien of any person except the person to whom\nthe payment was made.\n