Burr & Forman

10.15.2013   |   Articles / Publications

Burr Alert: 5TH CIRCUIT: Mississippi’s Stop-Notice Statute Is Unconstitutional

In Noatex Corp v. King Construction of Houston, LLC, Case No. 12-60385 (5th Cir. Oct. 10, 2013), the Fifth Circuit Court of Appeals issued its long-awaited ruling on the constitutionality of Mississippi’s Stop- Notice statute, Miss. Code Ann. Section 85-7-181. The Stop-Notice statute allowed unpaid subcontractors or material men to bind money in the hands of the project owner, thereby preventing those funds from being disbursed to the non-paying prime contractor. The Stop-Notice statute was a primary protection for construction subcontractors and suppliers in Mississippi.

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