MISSISSIPPI – Stop Notice Ruled Unconstitutional
On October 10, 2013, the United States Court of Appeals for the Fifth Circuit ruled the Mississippi Stop Notice statute unconstitutional. In Mississippi, only those contracting directly with the owner are entitled to a mechanic’s lien. Until this ruling, those who contracted directly with the general contractor were entitled to a Stop Notice, which in effect was a lien against the funds owed by the owner to the general contractor. The court held that the Stop Notice statute was facially unconstitutional because it deprived contractors of property without due process. Unless the court’s decision is challenged, or the statute is rewritten, unpaid subcontractors will have no security under the mechanic’s lien statute. Click here to read the decision of the district court.