Oct 21, 2013

Mississippi’s Stop Payment Notice Statute Found Unconstitutional

Authored By: Darren Rowles and Scott Cahalan In several states, including Mississippi, California, Arizona, New Mexico, and Washington, subcontractors and suppliers are used to filing a “stop notice” or “stop payment notice” when they are not paid for work performed at a project.  See also North Carolina (lien on funds).  However, the recent holding in Noatex Corp. v. King Constr. of Houston, LLC, 2013 U.S. App. LEXIS 20656, 14-15 (5th Cir. Oct. 10, 2013), calls into question the constitutionality of stop notice statutes and the remedies they provide to lower-tier contractors and suppliers. A stop notice is a notice to… Read more