SOUTH CAROLINA—NOTICE OF FURNISHING – CASE LAW REVERSED

The Supreme Court of South Carolina has overturned case law regarding the Notice of Furnishing.

The South Carolina Court of Appeals had previously ruled a mechanic’s lien invalid as they viewed the creditor’s Notice of Furnishing insufficient to notify the owner of the lien, since the notice did not state it was a mechanic’s lien and it contained no demand for payment.  To comply with that case law, it was recommended that a Notice of Furnishing be served prior to furnishing to trap funds, and then again after furnishing, with a demand to the owner for payment.

On July 9, 2014, The Supreme Court of South Carolina reversed and remanded the previous decision, stating The Court of Appeals had created additional requirements not provided by the General Assembly in section 29-5-40 for a Notice of Furnishing.  Since the case law has been reversed, a second Notice of Furnishing will no longer be required. Click here for ruling
 

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