Notice of Claim-Public Work

Warning: All information contained within this data base is subject to change at any time by the various states and is not guaranteed in any way by FWM Software. Nor does FWM Software assume any liability or responsibility for it's content. Please use in conjunction with advice from your attorney.

Note: This information is limited in scope and applies only to this document. Please see the general information, all forms memo, and the general information memo for this type of document, for additional information.

Description: Notice of Claim on Bond and Lien for Public Improvement.

Scope: State of Mississippi, Public Works.

Time Constraints: To make claim on a general Public Works Payment Bond, you must serve the prime contractor, public entity and surety with a Public Works Bond Claim within 90 days of last furnishing labor, materials or services.

Important: If the bond is a Highway Payment Bond and you are an equipment lessor or credit seller, you must have given notice to the prime contractor of your agreement when credit is extended (see the Mississippi Preliminary Notice, Public Work, memo), and advise the prime contractor, public entity and surety with the Public Works Bond within 30 days of default on the contract.

Stop Payment Notice – On October 10, 2013, the United States Court of Appeals for the Fifth Circuit in Noatex Corp. v. King Construction of Houston, 2013 U.S. App. Lexis 20656 (5th Cir. October 10, 2013, held that Mississippi’s Stop Payment Notice statute, Miss. Code Ann. 85-7-181, is an unconstitutional violation of procedural due process.  It remains that only those with a direct contractual relationship with the owner, his agent or representative are afforded the protection of a lien.  The Stop Payment Notice in Lien Writer® has been left in tact pending appeal to the Supreme Court, but it’s use is not recommended.

Perfection: You must file suit to perfect your lien claim after complete performance of the contract but within 1 year of the final settlement of the contract. A Notice of Pendency for Suit must be filed at the same time.

Payment Bond: Obtain a copy of the public works bond to determine specifics as to filing time limitations for notice and suit.

The usual remedy is to file to enforce all claims in one suit (see below, Procedures). In any case, we strongly recommend your attorney handle the enforcement actions to perfect your lien claim.

Information Requirements: Program information and information for Exhibits A-D and any additional costs as to legal fees, court costs and interest charges (don't pass these up. Estimate if necessary. In the case of Stop Notices and Bond Claims, the public entities and sureties will reserve only the amount for which you make claim), and the borough (their equivalent of a county) of the state where the recording will be made.

Form Types: Notice of Claim on Bond and Lien for Public Improvement and Exhibit's A-D, if needed.

Procedures: Prepare your documents using the required information. Serve the Notice of Claim on Bond and Lien for Public Improvement on the public entities, general contractors and sureties, if known.

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