The Lien and Credit Journal has been keeping a close eye on the tumultuous state of mechanics lien law in Mississippi for the past 6 months.
It seemed like change was on the horizon when the United States Court of Appeals for the Fifth Circuit deemed Mississippi’s Stop Notice law facially unconstitutional as it deprived general contractors of their property without due process of law. The change began to take effect with the passage of Senate Bill 2622, which was originally drafted in January, then amended, and passed as amended on February 12, 2014.
That bill, with slight alterations, has been signed into law by the governor of Mississippi – effecting dramatic changes to the lien law scheme. It was time for Mississippi to expand the rights provided by mechanics liens to more parties than just general contractors, and to come closer in line with the view of every other state. This reinvention of the security available on construction projects in Mississippi, should set the stage for growth in the construction industry in that state.
What Part of Mississippi Lien Law Is Changed?
In a word: Everything.
This is a radical reinvention of the entire statutory scheme, and of the availability of the mechanics lien instrument…Read More