October 2013

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On October 10, 2013, the Fifth Circuit Court of Appeals, citing lack of procedural safeguards, affirmed a district court’s determination that Mississippi’s “Stop Notice” statute is unconstitutional because it deprives contractors of their property without due process. This holding effectively abrogates “lien rights” for first-tier subcontractors. Absent a challenge to this decision or a significant re-work of Mississippi’s stop-payment law, only contractors with a direct contractual relationship with an owner will have lien rights. (more…)