Mississippi liens that can reach your home.
Mississippi's lien chapter is where a claim becomes an encumbrance on your property. It is worth knowing what is here — and, just as much, what is not: there is no general homeowners' association assessment lien in this chapter.
Start with what is not here
Title 85, chapter 7 is Mississippi's general lien chapter. It runs to more than a hundred sections across a dozen articles — crop liens, mechanics and stablekeepers, self-storage, oil and gas wells, performance bonds, laundry plant operators, burn-care providers, construction liens on real estate, and a commercial real estate broker's lien.
What it does not contain is a general homeowners' association assessment lien. If you own a condominium, the association's lien comes from § 89-9-21 of the Mississippi Condominium Law, not from this chapter. If you own a lot in an ordinary subdivision, any lien your association claims has to come from your recorded declaration and the general law of contract and property — Mississippi has not legislated one for you.
That is the single most useful thing this chapter tells a homeowner, and it is only visible by reading the whole of it.
Article 21 — the construction lien on your home
§§ 85-7-401 to 85-7-433 are the liens most likely to appear on a homeowner's title, because they arise out of work done on the property. § 85-7-403 creates a special lien on real estate for labour, services or materials furnished for it, and § 85-7-405 sets out how the lien is created and declared — the statement and notice required, and the payment action.
The article carries a series of protections and deadlines that cut both ways, and they are worth knowing before a dispute rather than after:
- § 85-7-409 limits what a subcontractor, materialman or design professional not in privity with the owner may recover against a single-family residential homeowner: payment by the owner is an absolute defence, and a ten-day pre-lien notice is a condition precedent.
- § 85-7-407 requires a contractor, on written request, to furnish a list of all subcontractors and materialmen. Read § 85-7-407(4) before relying on it: the section does not apply to single-family residential construction, so it is not available to most homeowners. The single-family protections are §§ 85-7-409 and 85-7-413.
- § 85-7-415 allows a lien to be discharged by filing a bond, and § 85-7-413 provides for dissolution.
- § 85-7-421 expires a claim of lien if a payment action is not filed in time, and provides for cancelling it; § 85-7-423 allows the period to be shortened.
- § 85-7-429 imposes liability for falsely and knowingly filing a claim of lien without just cause.
- § 85-7-419 and § 85-7-433 govern waivers and releases. Note who signs: the statutory forms are executed by the claimant — the contractor, subcontractor or supplier — not by you. An owner obtains the waiver and then pays in reliance on it (§ 85-7-413(1)(a)). It is not final either: under § 85-7-419(5) the claimant may file an affidavit of nonpayment within sixty days, which suspends the waiver until payment in full is received.
Other articles that can touch a residence
- Self-storage — §§ 85-7-121 to 85-7-129 give the owner of a self-storage facility a lien on property stored in it.
- Commercial real estate broker's lien — §§ 85-7-501 to 85-7-527.
- Performance bonds — §§ 85-7-187 to 85-7-195, on who has a right of action on the bond and when suit must be commenced. Both ends of the article are gone: §§ 85-7-181 through 85-7-185 and §§ 85-7-197 through 85-7-201 were repealed.
Six repeal notices in this chapter cover thirteen section numbers — §§ 85-7-135 to 139, 149 to 151, 181 to 185, 197 to 201, § 85-7-317 and § 85-7-527. They are reproduced below as the Code prints them, so a citation to any of those numbers can be recognised for what it is.
Contents · 104 sections ▾
- § 85-7-1 Employer and employees; lien on crops
- § 85-7-3 Sawmill employees and timber men; lien on lumber and timber
- § 85-7-5 Owner of stallion, jackass, or bull; lien on foal or calf
- § 85-7-7 Water craft; work, materials, supplies, etc
- § 85-7-9 Water craft; municipal dockage, wharfage, or anchorage charges
- § 85-7-31 Commencement of suit
- § 85-7-33 Non-resident or unknown parties
- § 85-7-35 Precedents
- § 85-7-37 Affidavit
- § 85-7-39 Writ; form
- § 85-7-41 Writ; where returnable
- § 85-7-43 Writ; when returnable
- § 85-7-45 Writ; return to wrong court not to affect the case
- § 85-7-47 Replevy of property seized
- § 85-7-49 Issue and judgment
- § 85-7-51 Death of party not to abate suit
- § 85-7-53 Sale of steamboat or water craft and its effect
- § 85-7-71 Definition
- § 85-7-73 Sale of watches, jewelry, etc., left over 90 days for repairs, etc. permitted
- § 85-7-75 Notice to owners
- § 85-7-77 Sale; disposition of proceeds
- § 85-7-79 Notices required to be posted
- § 85-7-81 Purpose and intent of Sections 85-7-71 through 85-7-81
- § 85-7-101 Articles constructed, manufactured or repaired; lien for labor and materials
- § 85-7-103 Stable keepers; lien on animals
- § 85-7-105 Remedy where lienholder loses possession to owner
- § 85-7-107 Lien on motor vehicle for labor and materials used in constructing, manufacturing or repairing vehicle; notice to legal owner and holder of any lien; judgment on lien; redemption; sale of vehicle
- § 85-7-121 Definitions
- § 85-7-123 Owner’s lien for rent on personal property in self-storage facility; denial of entry by owner to occupant in default; late fees; election by occupant to receive notice by electronic mail
- § 85-7-125 Enforcement of owner’s lien
- § 85-7-127 Satisfaction of lien; sale of property
- § 85-7-129 Application of Sections 85-7-121 through 85-7-129 to rental agreements entered into on or after July 1, 1988
- § 85-7-131 Liens on water, oil or gas wells; effect as to purchasers, etc., without notice
- § 85-7-132 Lien to enforce violations related to oil and gas production
- § 85-7-133 Chancery clerk to keep record of liens
- § 85-7-135 Repealed
- § 85-7-141 Commencement of suit to enforce lien
- § 85-7-143 Parties to the suit
- § 85-7-145 Summons of defendants
- § 85-7-147 Defenses and counterclaims
- § 85-7-149 §§ 85-7-149 and 85-7-151. Repealed
- § 85-7-153 Execution
- § 85-7-155 Sale of house, building, etc., with or without land; procedure; purchaser’s estate in land
- § 85-7-157 Sale of railroad land or buildings; procedure; purchaser’s estate property
- § 85-7-181 Repealed
- § 85-7-187 Bond; persons with right of action
- § 85-7-189 Bond; suit on; commencement
- § 85-7-191 Bond; suit on; only one action permitted; intervention
- § 85-7-193 Bond: judgment; pro rata recovery where funds insufficient
- § 85-7-195 Process
- § 85-7-197 Repealed
- § 85-7-221 Definition
- § 85-7-223 Sale of clothing, etc., for cleaning charges
- § 85-7-225 Sale of clothing, etc., for storage charges permitted
- § 85-7-227 Notice to owners
- § 85-7-229 Sale; disposition of proceeds
- § 85-7-231 Notices required to be posted; form and content of notices
- § 85-7-233 Purposes and intent of Sections 85-7-221 through 85-7-233
- § 85-7-235 Sale of clothing after 180 days without notice or liability to owner
- § 85-7-251 Sale of motor vehicle for towing and storage cost; notice requirement
- § 85-7-261 How lien created
- § 85-7-263 Liens on the same building, etc. concurrent
- § 85-7-265 Proceedings under justice courts
- § 85-7-301 Definitions; lien on causes of action accruing to injured persons for uncompensated traumatic burn care
- § 85-7-303 Filing of verified statement; contents; notice
- § 85-7-305 Duties of chancery clerk; lien book
- § 85-7-307 Effect of covenant not to bring an action; action to enforce lien; affidavit of payment
- § 85-7-309 Applicability
- § 85-7-311 Effect of Sections 85-7-301 through 85-7-315 on settlement before entry into qualifying hospital
- § 85-7-313 No independent right of action to determine liability for injuries
- § 85-7-315 False affidavit required by Section 85-7-307 as perjury
- § 85-7-317 Repealed
- § 85-7-401 Definitions
- § 85-7-403 Special lien on real estate or other property for labor, services or materials furnished
- § 85-7-405 Creation and declaration of lien; requisite statement and notice; payment action; amendment of claim of lien; priority of liens
- § 85-7-407 Contractors to furnish list of all subcontractors and materialmen upon written request of property owner; information to be provided by persons not having privity of contract with contractor; applicability of section
- § 85-7-409 Limitation of recovery of subcontractors against single-family residential homeowner
- § 85-7-411 Attachment of liens to buildings or improvements on leased property
- § 85-7-413 Dissolution of special liens
- § 85-7-415 Discharge of lien by filing bond
- § 85-7-417 Privileges and benefits of partnerships, corporations or associations with respect to special liens on real estate
- § 85-7-419 Waiver and release of lien or bond claim
- § 85-7-421 Expiration of claim of lien if payment action not timely filed; filing cancellation of fully satisfied lien
- § 85-7-423 Shortening the time prescribed in which to file payment action
- § 85-7-425 Computation of time
- § 85-7-427 Enforcement of judgments by special writ of execution
- § 85-7-429 Liability for falsely and knowingly filing claim of lien without just cause
- § 85-7-431 Payment bond as substitution for subcontractor or materialmen liens
- § 85-7-432 Private project construction bonds; requirements; right to sue; right of action; persons protected by payment bond
- § 85-7-433 Forms; interim waiver and release upon payment; waiver and release upon final payment; affidavit of nonpayment; notice of contest of lien; pre-lien notice to owner
- § 85-7-501 Short title
- § 85-7-503 Definitions
- § 85-7-505 Commercial real estate lien
- § 85-7-507 When lien attaches to commercial real estate
- § 85-7-509 Lien notice, content
- § 85-7-511 Lien claimant to mail copy of notice of lien to owner(s) by certified mail
- § 85-7-513 Enforcing lien
- § 85-7-515 Complaint; content; parties’ foreclosure action; procedure
- § 85-7-517 When lien claim release or satisfaction to be filed; extinguishment on certain conditions
- § 85-7-519 Cost of proceeding to be paid by nonprevailing party
- § 85-7-521 Discharge of lien
- § 85-7-523 Remedy for lien wrongly filed
- § 85-7-525 Priority of deeds of trust or mortgages, tax liens and other liens
- § 85-7-527 Repealed
(1) Every employer shall have a lien on the share or interest of his employee in any crop made under such employment, for all advances of money, and for the fair market value of other things advanced by him, or anyone at his request, for supplies for himself, his family and business during the existence of such employment, which lien the employer may offset, recoup, or otherwise assert and maintain.
(2) Every employee, laborer, cropper, part owner, overseer or manager, or other person who may aid by his labor to make, gather, or prepare for sale or market any crop, shall have a lien on the interest of the person who contracts with him for such labor for his wages, share or interest in such crop, whatever may be the kind of wages or the nature of the interest, which lien such employee, laborer, cropper, part owner, overseer or manager, or other person may offset, recoup or otherwise assert and maintain.
(3) Except as provided in subsection (4) of this section, any lien arising under the provisions of this section shall be paramount to all liens and encumbrances or rights of any kind created by or against the person so contracting for such assistance when perfected in accordance with Uniform Commercial Code Article 9 – Secured Transactions (Section 75-9-101 et seq.), except the lien of the lessor of the land on which the crop is made, for rent and supplies furnished, as provided in the chapter on “Landlord and Tenant,” appearing as Chapter 7 of Title 89, Mississippi Code of 1972.
(4) Any lien arising under the provisions of subsection (2) of this section in favor of any person other than an employee, laborer, cropper, part owner, overseer or manager as to crops or the proceeds thereof shall be effective against a third party only for a period of twenty-one (21) days from and after the time the labor is completed, unless within such period of time the lien is perfected in accordance with Uniform Commercial Code Article 9 – Secured Transactions (Section 75-9-101 et seq.). Any such lien in favor of any person other than an employee, laborer, cropper, overseer or manager which has not been perfected within the twenty-one-day period as herein provided shall, upon subsequent perfection of such lien, have the priority as against a third party to which a perfected security interest may be entitled under Uniform Commercial Code Article 9 – Secured Transactions (Section 75-9-101 et seq.).
Codes, 1880, § 1360; 1892, § 2682; 1906, § 3042; Hemingway’s 1917, § 2400; 1930, § 2238; 1942, § 336; Laws, 1894, ch. 71; Laws, 1985, ch. 492; Laws, 2001, ch. 495, § 33, eff from and after Jan. 1, 2002.
Every employee or laborer of an employer engaged in the operation of a sawmill or planing mill or in cutting and shipping or rafting timber shall have a lien on all such lumber and timber for his wages due by such employer in preference to all other debts of the said employer; but such lien shall take effect as to purchases or incumbrances for a valuable consideration without notice thereof only from the time of commencing judicial proceedings to enforce the lien, and unless such proceedings have been begun the said lien shall expire six (6) months after the claim is due.
Codes, Hemingway’s 1917, §§ 2415, 2416, 2417; 1930, § 2240; 1942, § 338; Laws, 1908, ch. 131; Laws, 1922, ch. 282.
The owner of a stallion, jackass or bull shall have a lien on each foal begotten by his stallion or jackass, and on each calf begotten by his bull, for the price agreed to be paid therefor, and such lien shall be prior to all other incumbrances on such foal or calf and shall bind the same even in the hands of subsequent purchasers and encumbrancers for a valuable consideration without notice; but the said lien shall expire twelve months after the birth of said foal or calf unless within that time judicial proceedings have been begun to enforce the lien. If the owner shall have falsely represented the breeding, registration, or pedigree of his stallion, jackass or bull, by advertisement or otherwise, he shall not have a lien on the foal begotten by such stallion or jackass, or on the calf of such bull, as against any person who acted under the belief that such representation was true; and, in such case, the owner of the animal shall not have any claim for the service of the stallion, jackass, or bull.
Codes, 1880, § 1394; 1892, §§ 2716, 2717, 2718; 1906, §§ 3076, 3077, 3078; Hemingway’s 1917, §§ 2439, 2440, 2441; 1930, § 2241; 1942, § 339; Laws, 1888, p. 90; Laws, 1934, ch. 312; Laws, 1936, ch. 295.
There shall be a lien on all ships, steamboats and other water craft for work done or materials supplied by any person in this state for or concerning the building, repairing, fitting, furnishing, supplying or victualing such ships, steamboats or other water craft, and for the wages of the persons employed on board such vessel, boat, or craft, for work done or services rendered, in preference to all other debts due and owing from the owners thereof. The said lien shall expire six (6) months after the claim is due, unless judicial proceedings have been commenced to assert it.
Codes, 1880, § 1395; 1892, § 2725; 1906, § 3085; Hemingway’s 1917, §§ 2445, 2447; 1930, § 2242; 1942, § 340.
(1) There shall be a lien on all skiffs, yachts, and other water craft in favor of any municipality operating a small craft or yacht harbor or basin for dockage, wharfage or anchorage charges for space or anchorage contracted for by the water craft or its owner or agent where the charge for such space or anchorage is made for a period of time without regard to the actual time such skiff, yacht or other water craft is actually docked or anchored to the dock, wharf, or at the mooring place in the basin. Such lien shall be paramount to all other debts due and owing by such water craft, or the owner thereof, or other lien thereon, except as provided by Section 85-7-7.
(2) The lien, by this section provided, shall be enforced as provided by Sections 85-7-31 through 85-7- 53, inclusive.
Codes, 1942, § 340-01; Laws, 1946, ch. 290, §§ 1, 2.
A person having any lien in Sections 85-7-1 through 85-7-9 may enforce the same by making affidavit before any officer authorized to administer oaths of any county where the subject-matter of the lien may be, describing therein the property sought to be subjected, setting forth his claim, share or interest therein, and asserting his lien thereon, with an itemized account of his demand, and giving the names of the persons interested therein, and of those, if any, who have a like or other claim or interest in such property; whereupon the clerk or justice shall issue a writ directed to the proper officer and returnable to the proper court, commanding the officer to seize the property, or so much thereof as may be necessary to satisfy the plaintiff’s demand and costs, and to summon the persons named in the affidavit as interested therein, to appear in the court designated, at the time fixed, to answer the complaint.
Codes, 1880, §§ 1363, 1364; 1892, § 2684; 1906, § 3044; Hemingway’s 1917, § 2402; 1930, § 2243; 1942, § 341.
If any party in interest be a non-resident of the state, or his whereabouts be unknown, he may be made a party to the suit and be proceeded against as in case of suits by attachment against such persons.
Codes, 1880, § 1370; 1892, § 2690; 1906, § 3050; Hemingway’s 1917, § 2408; 1930, § 2244; 1942, § 342.
Affidavits and writs in the form of the following precedents shall be sufficient in cases of employer and employee, and in other cases the form shall vary so as to conform to the facts.
Codes, 1880, § 1373; 1892, § 2693; 1906, § 3053; Hemingway’s 1917, § 2411; 1930, § 2245; 1942, § 343.
“State of Mississippi, County “Before me, , a justice of the peace of the said county, makes oath that he was employed by during the year A. D. , as a laborer, and as such, and under his employment, assisted to make a crop of cotton and corn, which yielded bales of cotton and bushels of corn, which are now in the possession of , and the same is at , in said county; and that affiant is, by his contract and services, entitled to one-half of said cotton and corn, the same being of the value of dollars, which the said withholds from him [or whatever may be the claim]. Affiant claims a lien on all of said cotton and corn for the recovery of his share or interest therein, and that and claim a like lien thereon. Affiant prays process according to law. “ ” “Sworn to and subscribed before me, the day of , A. D. “ , J. P.”
Codes, 1880, § 1374; 1892, § 2694; 1906, § 3054; Hemingway’s 1917, § 2412; 1930, § 2246; 1942, § 344.
“The State of Mississippi. “To any lawful officer of county: “We command you forthwith to take into your possession and dispose of, according to law, bales of cotton and bushels of corn, now in the possession of , believed to be at , in your county, as it is said, or so much thereof as will be sufficient to satisfy the claim of , who asserts an interest therein to the extent of one-half thereof, which he avers is of the value of dollars [or who claims a lien thereon for dollars, alleged to be due him for his wages as a laborer in producing said articles, or whatever the claim may be, as set forth in the affidavit], for his labor in producing said articles, and summon the said [and any others shown by the affidavit to have an adverse claim to said articles] to appear before the undersigned, a justice of the peace of said county, at , on , the day of A. D. , at o’clock, .M., to answer said claim, and have this writ there then. “Witness my hand, the day of , A. D. . “ , J. P.”
Codes, 1880, § 1375; 1892, § 2695; 1906, § 3055; Hemingway’s 1917, § 2413; 1930, § 2247; 1942, § 345.
The writ shall be returnable before the justice of the peace who issued it or some other justice of the peace, if the principal of the sum claimed does not exceed Two Hundred Dollars ($200.00), and, if it does, it shall be returnable to the circuit court; and in such case the affidavit shall be filed, by the officer who issued the writ, in the office of the clerk of the circuit court, on or before the return day of the writ.
Codes, 1880, § 1365; 1892, § 2685; 1906, § 3045; Hemingway’s 1917, § 2403; 1930, § 2248; 1942, § 346.
The writ, when returnable before a justice of the peace, may be made returnable at any time which will give the parties in interest five (5) days’ notice before trial; and when returnable to the circuit court, it may be executed at any time before the first day of the term, and the cause shall be triable at such term.
Codes, 1880, § 1366; 1892, § 2686; 1906, § 3046; Hemingway’s 1917, § 2404; 1930, § 2249; 1942, § 347.
If the writ be made returnable to the wrong court, the case shall not be dismissed nor affected thereby, but shall be transferred to the proper court, and the cause shall be there proceeded with as if the writ had been made returnable there; and any bond given shall not be affected by such mistake, but it may be proceeded on in the proper court.
Codes, 1880, § 1367; 1892, § 2687; 1906, § 3047; Hemingway’s 1917, § 2405; 1930, § 2250; 1942, § 348.
The defendant, or any person interested, may give bond, with sufficient sureties, and replevy the property seized, as provided in the action of replevin; and the rights of the parties respectively to give such bond and receive the property from the officer, and the condition of the bond, the necessary changes being made, and the duty of the officer to take it and his liability thereon, and the disposition he shall make of the property if bond be not given, and the proceeding on such bond, shall be as provided for in the like case in the action of replevin; and any bond given shall inure to the person in whose favor judgment may be given in the case, as if it were payable to him.
Codes, 1880, § 1368; 1892, § 2688; 1906, § 3048; Hemingway’s 1917, § 2406; 1930, § 2251; 1942, § 349.
Any person interested may contest the demand of the plaintiff on the return day of the writ, if returned, or on any day before the rendition of final judgment in the case, by filing a statement in writing, under oath, of his defense or claim, itemizing his account, if any he has; and the case shall be then at issue between the parties, and shall be tried as other cases in the court. And the judgment of the court shall be framed so as to adjust the rights of the several parties as to the subject-matter of the suit; and judgment may be given against the party liable thereto for any amount, and for the sale of any goods in the hands of the officer, and for any balance not obtained from the sale of the goods, to be made by execution as in other cases, and the costs may be adjudged as the court may consider just; and as many judgments shall be rendered as may be necessary to adjust the rights of the several parties.
Codes, 1880, § 1369; 1892, § 2689; 1906, § 3049; Hemingway’s 1917, § 2407; 1930, § 2252; 1942, § 350.
If any party to the suit die, it shall not abate, but may be proceeded with as in other personal actions in such case; and if any party thereto die after judgment, the same may be executed and enforced as judgments in other personal actions in such case.
Codes, 1880, § 1370; 1892, § 2691; 1906, § 3051; Hemingway’s 1917, § 2409; 1930, § 2253; 1942, § 351.
If the special writ of execution be for the sale of a steamboat or other water craft, the officer shall levy on, advertise and sell the same as personal property too cumbersome to be moved is levied on and sold for debt; and the purchaser shall acquire the same free from all prior encumbrances saving the rights of those having concurrent liens under this chapter.
Codes, 1892, § 2711; 1906, § 3071; Hemingway’s 1917, § 2431; 1930, § 2254; 1942, § 352.
As used in Sections 85-7-71 through 85-7-81, the term “person” shall mean a natural person, partnership, corporation, or other legal entity.
Codes, 1942, § 352.5; Laws, 1964, ch. 377, eff from and after passage (approved April 23, 1964).
Any watch, clock, timepiece, ring, jewelry, or other item, which has been repaired, altered, cleaned, sized, rebuilt, adjusted, or regulated, remaining in the possession of a person for a period of ninety (90) days or more, may be sold to pay reasonable or agreed charges, together with any costs or expenses provided for in Sections 85-7-71 through 85-7-81. Provided, however, that the person to whom such charges are payable and owing shall first notify the owner or owners of the proposed sale of the articles belonging to them and the amount of the charges due thereon.
Codes, 1942, § 352.5; Laws, 1964, ch. 377, eff from and after passage (approved April 23, 1964).
The mailing by registered or certified United States mail of a letter, with a return address marked thereon, addressed to the owner or owners at their address given at the time of delivery of such articles to the person, shall constitute notice under the provisions of Sections 85-7-71 through 85-7-81. Said notice shall be mailed at least thirty (30) days before the articles belonging to such owner or owners may be sold for charges due thereon. The cost of mailing said letter shall be added to the charges.
Codes, 1942, § 352.5; Laws, 1964, ch. 377, eff from and after passage (approved April 23, 1964).
If the chattel or chattels are not redeemed within thirty (30) days after the mailing of such letter, the person may sell such articles on the day and at the time and place specified in such letter. Such sales may be made either at public auction or by private sale. The proceeds of the sale in excess of the charges and necessary expenses of the procedure required by Sections 85-7-71 through 85-7-81 shall be held by the person for a period of six (6) months and if not reclaimed by the owner thereof within that time shall escheat to the county and be paid over to the chancery clerk to be placed into the general fund of the county in which the sale was held.
Codes, 1942, § 352.5; Laws, 1964, ch. 377, eff from and after passage (approved April 23, 1964).
All persons taking advantage of Sections 85-7-71 through 85-7-81 must keep posted at all times in a prominent place in their receiving office or offices two (2) notices which read as follows: “All watches, clocks, timepieces, rings, jewelry, or other items, which have been repaired, altered, cleaned, sized, rebuilt, adjusted, or regulated, and not called for in ninety (90) days, will be sold to pay charges.”
Codes, 1942, § 352.5; Laws, 1964, ch. 377, eff from and after passage (approved April 23, 1964).
The purpose and intent of Sections 85-7-71 through 85-7-81 is to provide an inexpensive means of enforcing liens for small amounts, and to that end the provisions of said sections shall be construed to create a lien in addition to, and shall not exclude, any liens which may exist by virtue of either the common law or any other statute of the State of Mississippi.
Codes, 1942, § 352.5; Laws, 1964, ch. 377, eff from and after passage (approved April 23, 1964).
Except as otherwise provided in Section 85-7-107, all carriages, buggies, wagons, plows, or any article constructed, manufactured or repaired for any person, and at his instance, shall be liable for the price of the labor and material employed in constructing, manufacturing or repairing the same; and the mechanic to whom the price of said labor and material may be due shall have the right to retain possession of such things so constructed, manufactured or repaired until the price be paid; and if the same shall not be paid within thirty (30) days, he may commence his suit in any court of competent jurisdiction and upon proof of the value of the labor and materials employed in such repairs, manufacture or construction, he shall be entitled to judgment against the party for whom such labor was done or materials furnished, with costs, as in other cases, and to a special order for the sale of the property retained in his possession for the payment thereof, with costs, and to an execution, as in other cases, for the residue of what remains unpaid after sale of the property.
Codes, 1880, § 1383; 1892, § 2715; 1906, § 3075; Hemingway’s 1917, § 2435; 1930, § 2255; 1942, § 353; Laws, 1988, ch. 542, § 2, eff from and after July 1, 1988.
The owner of every livery stable, sale stable, feed stable or public pasture shall have a lien on every horse, mule, cow, or other animal for the price of feeding, grooming, training, grazing, or keeping the same, at the instance of the owner of the animal, and shall have the right to retain possession of the animal until such price be paid. If the price be not paid in ten (10) days after it is due, the person to whom it is owing may commence suit therefor before a justice of the peace where the principal of the amount does not exceed Two Hundred Dollars ($200.00), and in the circuit court where it exceeds that sum, setting forth the amount of the debt, how it accrued, and a description of the animal; and, upon proof of the debt that it is due for feeding, grooming, training, grazing or keeping the animal, he shall be entitled to judgment against the owner for the amount due and sued for and the price of feeding, grooming, training, grazing and keeping the animal since the institution of the suit if the whole amount do not exceed the jurisdiction of the court, with costs as in other cases, and to a special order and execution for the sale of the property upon which the lien exists for the payment of such judgment and costs, and to an execution, as in other cases, for the residue of what remains unpaid after sale of the property. The lien created by this section shall be subordinate to any prior encumbrance on such animal of which the owner of the stable had notice, actual or constructive, unless the animal were fed, groomed, trained, grazed or kept by the consent of the encumbrancer.
Codes, 1892, § 2722; 1906, § 3082; Hemingway’s 1917, § 2442; 1930, § 2256; 1942, § 354; Laws, 1888, p. 94; Laws, 1934, ch. 311.
If the lienholders mentioned in Sections 85-7-101 and 85-7-103 part with possession of the property, they shall retain their liens while the property remains in the hands of the owner, or one deriving title or possession through him, with notice that the price of the labor and materials or the price of feeding, grooming, training, grazing or keeping the same was unpaid, and may enforce the same in like manner as is provided in Sections 85-7-31 and 85-7-53.
Codes, 1880, § 1383; 1892, § 2715; 1906, § 3075; Hemingway’s 1917, § 2435; 1930, § 2257; 1942, § 355; Laws, 1968, ch. 303, § 1, eff from and after passage (approved August 6, 1968).
All motor vehicles repaired for any person, and at his instance, shall be liable for the price of the labor and material employed in constructing, manufacturing or repairing the same; and the mechanic to whom the price of said labor and material may be due shall have the right to retain possession of such motor vehicles so repaired until the price be paid. If such price shall not be paid within thirty (30) days, and the person to whom such charges are payable and owing intends to commence suit as provided in this section, such person shall notify, by certified mail, the legal owner and the holder of any lien of the amount of charges due thereon and provide an opportunity for redemption. If such property has not been redeemed within five (5) days after the mailing of such certified letter, the person to whom such charges are payable and owing may commence suit in any court of competent jurisdiction, and upon proof of the value of the labor and materials employed in such repairs, manufacture or construction, and that such labor and materials furnished were reasonably necessary to prevent deterioration, permit operation and preserve the property, shall be entitled to judgment against the party for whom such labor was done or materials furnished, with costs, as in other cases, and to a special order for the sale of the property retained in his possession for the payment thereof, with costs, and to an execution, as in other cases, for the residue of what remains unpaid after sale of the property. The proceeds of the sale of such property in excess of the amount needed to pay the judgment and necessary expenses of the procedure required by this section shall be held by the person for a period of six (6) months, and if not reclaimed by the owner thereof within that time shall become the property of the county and be paid over to the chancery clerk of the county in which the sale was held to be deposited into the county general fund, subject however to any rights of recorded lienholders.
Laws, 1988, ch. 542, § 1; Laws, 2005, ch. 331, § 1, eff from and after July 1, 2005.
As used in Sections 85-7-121 through 85-7-129, the following terms shall have the meaning ascribed to them herein, unless the context clearly requires otherwise:
(a) “Default” means the failure timely to perform any obligation or duty set forth in Sections 85-7-121 through 85-7-129 or the rental agreement;
(b) “Electronic mail” means an electronic message or an executable program or computer file that contains an image of a message that is transmitted between two (2) or more computers or electronic terminals and includes electronic messages that are transmitted within or between computer networks;
(c) “Last known address” means the postal address or electronic mail provided by the occupant in the latest rental agreement or the postal address or electronic mail provided by the occupant in a subsequent written notice of a change of address;
(d) “Late fee” means any fee or charge assessed for an occupant’s failure to pay rent when due. Late fee does not include interest on a debt; expenses incurred in the collection of unpaid rent; expenses necessary for preservation of personal property or expenses reasonably incurred in its sale or other disposition pursuant to Sections 85-7-121 through 85-7-129; or costs associated with the enforcement of any other remedy provided by law or contract;
(e) “Leased space” means the individual storage space at the self-storage facility which is leased or rented to an occupant pursuant to a rental agreement;
(f) “Occupant” means a person, his sublessee, successor or assign entitled to the use of a leased space at a self-storage facility under a rental agreement to the exclusion of others;
(g) “Owner” means the owner, operator, lessor or sublessor of a self-storage facility, an agent or any person authorized to manage the facility or to receive rent from an occupant under a rental agreement. The term “owner” shall not be construed to mean a warehouseman unless the owner issues a warehouse receipt, bill of lading or other document of title for the personal property stored;
(h) “Personal property” means movable property not affixed to land and includes, but is not limited to, goods, wares, merchandise, watercraft, motor vehicles and household items;
(i) “Rental agreement” means any written agreement or lease that establishes or modifies the terms, conditions, rules or any other provisions concerning the use and occupancy of leased space at a self- storage facility;
(j) “Sale” means a public or private sale that is conducted at the self-storage facility, another suitable location selected by the owner, or on a publicly accessible website that conducts lien sales or personal property sales. The personal property at a sale may be offered as a unit or in parcels.
(k) “Self-storage facility” means any real property used for the purpose of renting or leasing individual storage space to occupants who are to have access to such space for the purpose of occupants themselves storing and removing personal property on “self-service basis”; provided, however, that an occupant may not use a leased space for residential purposes;
(l) “Verified mail” means any method of mailing offered by the United States Postal Service or private delivery service that provides evidence of the mailing.
Laws, 1988, ch. 595, § 1, eff from and after July 1, 1988; Laws, 2020, ch. 353, § 1, eff from and after July 1, 2020.
(1) The owner has a lien upon all personal property located at a self-storage facility for rent, late fees, labor or other charges, present or future, in relation to the personal property and for expenses necessary for its preservation or expenses reasonably incurred in its sale or other disposition pursuant to Sections 85-7-121 through 85-7-129. The lien provided for in this section is superior to any other lien or security interest except those which are perfected and recorded in Mississippi prior to the date of default under the rental agreement and except any tax lien as otherwise provided by law. The lien attaches as of the date the personal property is placed in the leased space and the rental agreement shall contain a statement in bold type notifying the occupant of the existence of the lien and that the property stored in the leased space may be sold to satisfy the lien if the occupant is in default. If the rental agreement specifies a limit on the value of personal property that the occupant may store in the leased space, the limit shall be deemed to be the maximum value of the personal property in the leased space of the occupant.
(2) If the occupant is in default, the owner may deny the occupant access to the leased space at the self-storage facility.
(3) The rental agreement may provide for a reasonable late fee for failure of the occupant to timely make payments for the leased space when due. A monthly late fee of no more than Twenty Dollars ($20.00) or twenty percent (20%) of the monthly rental amount, whichever is greater, shall be considered reasonable and is not a penalty.
(4) If the owner offers notice by electronic mail, the occupant may elect to receive notice by electronic mail only by indicating the election in the rental agreement.
Laws, 1988, ch. 595, § 2, eff from and after July 1, 1988; Laws, 2020, ch. 353, § 2, eff from and after July 1, 2020.
The enforcement of the owner’s lien against an occupant who is in default shall be in accordance with the following:
(a) No enforcement action shall be taken by the owner, other than denial of access, as provided for in the rental agreement until the occupant has been in default continuously for a period of fourteen (14) days.
(b) During the default period the occupant shall be notified in writing. The notice shall be delivered in person or sent by verified or electronic mail to the last known address of the occupant. Notices shall be deemed delivered when deposited in the United States mail, with a private delivery service with postage paid or when an electronic message is sent to the last known address provided by the occupant. If the owner receives an automated message that the electronic mail cannot be delivered, the owner shall deliver the notice in person or send the notice by verified mail. The notice shall include an itemized statement of the owner’s claim showing the sum due at the time of the notice, the date when the sum became due and any other sums that shall accrue. The notice shall also include a demand for payment of the sum due within a specified time not less than fourteen (14) days after the date of the notice, a statement that the contents of the occupant’s lease space are subject to the owner’s lien, the name, street address and telephone number of the owner, or his designated agent, whom the occupant may contact to respond to the notice, a conspicuous statement that unless the claim is paid within the time stated, the personal property will be advertised for public or private sale or will be otherwise disposed of at a specified time and place.
(c) After the expiration of the time given in the owner’s notice, the owner shall publish advertisement of the sale to the highest bidder in any commercially reasonable manner. The manner of advertisement is deemed commercially reasonable if it is likely to attract at least three (3) independent bidders to attend or view the sale in person or online at the time and place advertised. The notice shall include the address of the self-storage facility where the personal property is located, and the name of the occupant, and the time, place and manner of the sale.
(d) A sale to the highest bidder shall take place not sooner than fifteen (15) days after the publication.
(e) If no one purchases the property at the sale and if the owner has complied with the foregoing procedures, the owner may otherwise dispose of the property.
Laws, 1988, ch. 595, § 3, eff from and after July 1, 1988; Laws, 2020, ch. 353, § 3, eff from and after July 1, 2020.
(1) Before any sale or other disposition of personal property pursuant to Sections 85-7-121 through 85- 7-129, the occupant may pay the amount necessary to satisfy the owner’s lien and the reasonable expenses incurred under Sections 85-7-121 through 85-7-129, and thereby redeem the personal property. Upon the payment and satisfaction of the amount necessary to satisfy the lien and the reasonable expenses incurred under Sections 85-7-121 through 85-7-129, the owner shall return the personal property and thereafter the owner shall have no liability to any person with respect to such personal property. Unless the rental agreement specifically provides otherwise and until a sale under Sections 85-7-121 through 85-7-129, the exclusive care, custody and control of all personal property stored in the leased space remains vested in the occupant.
(2) The owner may buy at any sale of personal property to enforce the owner’s lien.
(3) A purchaser in good faith of the personal property sold to satisfy the owner’s lien takes the property free of any rights of persons against whom the lien was valid, despite noncompliance by the owner with the requirements of this section.
(4) In the event of a sale under Sections 85-7-121 through 85-7-129, the owner may satisfy his lien from the proceeds of the sale but shall hold the balance, if any, for delivery on demand to the occupant. In no event shall the owner’s liability exceed the proceeds of the sale. If the occupant does not claim the balance of the proceeds within one (1) year of the date of the sale, such balance shall be deemed to be abandoned and the owner shall pay such balance to the Treasurer of the State of Mississippi, in accordance with the Uniform Disposition of Unclaimed Property Act.
(5)
(a) If the personal property subject to the owner’s lien is a vehicle, watercraft, or trailer and rent or other charges remain unpaid for sixty (60) days, the owner may have the vehicle, watercraft, or trailer towed from the self-storage facility. This removal shall not release the owner’s lien. The owner shall not be liable for any damages to the vehicle, watercraft, or trailer once the tower takes possession of the property.
(b) Not less than ten days before having personal property towed pursuant to this section, an owner shall notify the occupant by regular mail or electronic mail at the occupant’s last known address and shall include the name, address, and telephone number of the tower and the owner or his designated agent.
(6) Nothing in this article shall be construed as in any manner impairing or affecting the right of parties to create additional rights, duties, and obligations in and by virtue of a rental agreement. In addition to the rights and remedies set forth in this article, the owner has the same rights of and remedies available to a creditor or landlord.
Laws, 1988, ch. 595, § 4, eff from and after July 1, 1988; Laws, 2020, ch. 353, § 4, eff from and after July 1, 2020.
The provisions of Sections 85-7-121 through 85-7-129 shall apply only to rental agreements entered into on or after July 1, 1988. Rental agreements entered into prior to July 1, 1988, shall remain valid.
Laws, 1988, ch. 595, § 5, eff from and after July 1, 1988.
Every water well or oil and gas well, and any fixed machinery, gearing or other fixture that may or may not be used or connected therewith, shall be liable for services or construction and the debt shall be a lien thereon. As to oil and gas wells, the operator thereof shall have a lien upon the interest of each nonoperator owner of an interest in the mineral leasehold estate for the nonoperator’s proportionate part of the labor, material and services rendered by the operator or for the operator’s account on behalf of each nonoperator in the drilling, completion, recompletion, reworking or other operations of the oil and gas well. If the structure is a water well, the lien shall extend only to all pumps, pipes, equipment therein and all water well appurtenances. If the structure is an oil or gas well, the lien shall extend to the nonoperator’s interest in the mineral estate and the fixtures and equipment in the producing unit assigned to the well by the State Oil and Gas Board. The lien shall take effect, as to purchasers or encumbrancers for a valuable consideration without notice thereof, only from the time of commencing suit to enforce the lien, or from the time of filing the contract under which the lien arose, or notice thereof, in the office of the clerk of the chancery court, as hereinafter stated; delivery of material to the job is prima facie evidence of its use therein, and use of water from a water well is prima facie evidence of acceptability of the well. In the case of oil and gas wells, the lien shall take effect, as to purchasers or encumbrancers for a valuable consideration without notice thereof, only from the time of filing notice of the lien as provided by Section 85-7-133.
Codes, Hutchinson’s 1848, ch. 45, art. 6 (1); 1857, ch. 39, art. 1; 1871, § 1603; 1880, § 1378; 1892, § 2698; 1906, § 3058; Hemingway’s 1917, § 2418; 1930, § 2258; 1942, § 356; Laws, 1926, ch. 150; Laws, 1928, ch. 137; Laws, 1962, ch. 488, §§ 1, 2; Laws, 1964, ch. 291; Laws, 1979, ch. 379; Laws, 2010, ch. 372, § 1; Laws, 2014, ch. 487, § 18, eff from and after passage (approved Apr. 11, 2014).
Every building, well or structure of any kind, and any fixed machinery, gearing or other fixture that may or may not be used or connected therewith, and all fixtures and equipment in the producing unit assigned such well by the Oil and Gas Board shall be liable for any penalty, civil fine or other expense arising from the violation of any statute of this state with respect to the conservation of oil and gas, or any provision of Sections 53-1-1 through 53-1-47 and Sections 53-3-1 through 53-3-21, or any rule, regulation or order made by the board thereunder. The Oil and Gas Board may use the provisions of this chapter to enforce any such lien. The Oil and Gas Board shall perfect such lien in the county or counties where the property or equipment involved in the violation is located. Such lien shall take effect as to purchasers or encumbrancers for a valuable consideration without notice thereof only from the time of filing notice of such lien as provided by Section 85-7-133.
Laws, 1997, ch. 482, § 1, eff from and after passage (approved March 27, 1997).
Each of the several chancery clerks of this state shall provide in his office, as a part of the land records of his county, a record entitled “Notice of Liens” wherein notices under Section 85-7-131 shall be filed and recorded, and the liens shall not take effect until some notation of the lien is filed and recorded in the record showing a description of the property involved, the name of the lienor or lienors, the date of filing, if and where suit is filed, and if and where contract is filed or recorded.
Codes, Hutchinson’s 1848, ch. 45, art. 6 (1); 1857, ch. 39, art. 1; 1871, § 1603; 1880, § 1378; 1892, § 2698; 1906, § 3058; Hemingway’s 1917, § 2418; 1930, § 2258; 1942, § 356; Laws, 1926, ch. 150; Laws, 1928, ch. 137; Laws, 1962, ch. 488, §§ 1, 2; Laws, 1964, ch. 291; Laws, 1994, ch. 521, § 39; Laws, 2014, ch. 487, § 19, eff from and after passage (approved Apr. 11, 2014).
This repeal covers a range. One notice repeals §§ 85-7-135 through 85-7-139 together, so the sections numbered between them have no separate entry anywhere in the chapter. They are repealed too.
Repealed by Laws, 2014, ch. 487, § 24, effective from and after passage April 11, 2014.
§ 85-7-135. [Codes, 1857, ch. 39, art. 2; 1871, § 1604; 1880, § 1379; 1892, § 2699; 1906, § 3059; Hemingway’s 1917, § 2419; 1930, § 2259; 1942, § 357; Laws, 1926, ch. 150; Laws, 2010, ch. 372, § 2, eff from and after July 1, 2010.]
§ 85-7-137. [Codes, 1857, ch. 39, art. 3; 1871, § 1605; 1880, § 1380; 1892, § 2700; 1906, § 3060; Hemingway’s 1917, § 2420; 1930, § 2260; 1942, § 358.]
§ 85-7-139. [Codes, 1857, ch. 39, art. 5; 1871, § 1607; 1880, § 1382; 1892, § 2701; 1906, § 3061; Hemingway’s 1917, § 2421; 1930, § 2261; 1942, § 359.]
Any person entitled to and desiring to have the benefit of a lien under Section 85-7-131 shall commence his suit in the circuit or county court of the county in which the property or some part thereof is situated, if the principal of his demand exceeds Two Hundred Dollars ($200.00), within twelve (12) months next after the time when the money due and claimed by the suit became due and payable following the day on which the last of the labor was performed or material or rental or lease equipment was supplied by the person bringing the action, and not after; and the suit shall be commenced by petition, describing with reasonable certainty the property upon which the lien is averred to exist, and setting out the nature of the contract and indebtedness, and the amount thereof; and the plaintiff shall file therewith in all cases, except where the whole work or materials, or both, were furnished in pursuance of a written contract for an aggregate price, a bill of particulars exhibiting the amount and kind of labor performed, and of materials furnished, and the prices at which and times when the same were performed and furnished; and such suits shall be docketed and conducted as other suits in that court, and may be tried at the first term.
Codes, Hutchinson’s 1848, ch. 45, art. 7 (3); 1857, ch. 39, art. 6; 1871, § 1609; 1880, § 1384; 1892, § 2702; 1906, § 3062; Hemingway’s 1917, § 2422; 1930, § 2262; 1942, § 360; Laws, 1904, ch. 152; Laws, 2011, ch. 457, § 1; Laws, 2014, ch. 487, § 20, eff from and after passage (approved Apr. 11, 2014).
All persons having an interest in the controversy, and all persons claiming liens on the same property, by virtue of Section 85-7-131, shall be made parties to the suit; and should any necessary or proper party be omitted, he may be brought in by amendment, on his own application or that of any other party interested; and claims of several parties having liens on the same property may be joined in the same action.
Codes, 1857, ch. 39, art 7; 1871, § 1610; 1880, § 1385; 1892, § 2703; 1906, § 3063; Hemingway’s 1917, § 2423; 1930, § 2263; 1942, § 361; Laws, 2014, ch. 487, § 21, eff from and after passage (approved Apr. 11, 2014).
In all actions to enforce a lien granted by Section 85-7-131, the defendants shall be summoned, as in other actions at law, to appear and defend the action; and in case any necessary party defendant shall be a nonresident of or absent from the state, or cannot be found, he may be made a party by publication, as in cases of nonresident or absent defendants in chancery, requiring him to appear on a day to be therein named; and in default of appearance, the same proceedings shall be had as if the defendant had been duly summoned and made default.
Codes, 1857, ch. 39, art. 8; 1871, § 1611; 1880, § 1386; 1892, § 2704; 1906, § 3064; Hemingway’s 1917, § 2424; 1930, § 2264; 1942, § 362; Laws, 2014, ch. 487, § 22, eff from and after passage (approved Apr. 11, 2014).
In all actions to enforce a lien granted by Section 85-7-131, the defendants, or any of them, by answer to the petition, may make any defense they may have against the demand of the plaintiff, and also any counterclaim against him touching the subject-matter of the suit. And should any defendant claim to have a lien upon the same property, for materials furnished or labor done thereon, he may present the lien by his answer; and the cause shall be at issue without a replication, and the parties shall be confined at the trial to the cause of action and defense set forth in the pleadings.
Codes, 1857, ch. 39, art. 9; 1871, § 1612; 1880, § 1387; 1892, § 2705; 1906, § 3065; Hemingway’s 1917, § 2425; 1930, § 2265; 1942, § 363; Laws, 2014, ch. 487, § 23, eff from and after passage (approved Apr. 11, 2014).
Repealed by Laws 2014, ch. 487, § 24, effective upon approval April 11, 2014.
§ 85-7-149. [Codes, 1857, ch. 39, art. 10; 1871, § 1613; 1880, § 1388; 1892, § 2706; 1906, § 3066; Hemingway’s 1917, § 2426; 1930, § 2266; 1942, § 364.]
§ 85-7-151. [Codes, 1857, ch. 39, art. 11; 1871, § 1614; 1880, § 1389; 1892, § 2707; 1906, § 3067; Hemingway’s 1917, § 2427; 1930, § 2267; 1942, § 365; Laws, 1987, ch. 392, § 1, eff from and after July 1, 1987.]
When the judgment shall be against the house, building, structure, or fixture and land, or against the same without the land, or against a railroad, or railroad embankment, a special writ of execution shall issue, to make the amount recovered by sale of the property, which shall be described therein; and when both a general and special judgment shall be given, both writs may be issued, either separately or combined in one, or one may be issued after the return of the other for the whole or the residue, as the case may require.
Codes, 1857, ch. 39, art. 12; 1871, § 1615; 1880, § 1390; 1892, § 2708; 1906, § 3068; Hemingway’s 1917, § 2428; 1930, § 2268; 1942, § 366.
If such special writ of execution be for the sale of a house, building, structure, or fixture and the land, or for the sale of the same without the land, the officer shall levy on, advertise, sell, and convey the same as in other cases of land levied on for debt; and if the sale be of the house, building, structure, or fixtures alone, and the same shall have been erected or constructed and put on the land subsequently to a former encumbrance on the land, the purchaser shall acquire the same free from such former encumbrance, and his purchase shall authorize him to enter and remove such house, building, structure, or fixture from the land with reasonable dispatch; but if the house, building, structure or fixture so sold, or sold with the land, shall have been simply altered or repaired subsequently to a former encumbrance on the land, the purchaser shall acquire the same subject to such encumbrance, unless the encumbrancer consented in writing to the alteration or repairs, in which case the house, building, structure, or fixtures so altered or repaired shall be sold free from such encumbrance, and with the right in the purchaser to enter and remove the same. If the land be sold also, the purchaser shall acquire such estate therein as the owner or builder, as the case may be, had at the time the lien to enforce which the sale is made attached thereon, or at any time afterwards, subject to prior encumbrances; but buildings, structures, or fixtures erected or constructed and put on the land subsequently to prior encumbrances shall pass to the purchaser as if the sale were of such buildings, structures, or fixtures alone.
Codes, 1857, ch. 39, art. 13; 1871, § 1616; 1880, § 1391; 1892, § 2709; 1906, § 3069; Hemingway’s 1917, § 2429; 1930, § 2269; 1942, § 367.
If the special writ of execution be for the sale of a railroad or railroad embankment, the officer shall levy on, advertise, sell, and convey the same as in case of land levied on for debt; and where the property may be in several counties, the officer may sell the same and the right of way, and all depots and other buildings used or connected therewith, as if the same were situated wholly within his county, and the purchaser shall acquire the property free from all prior encumbrances saving the rights of those having concurrent liens under this chapter.
Codes, 1880, § 1391; 1892, § 2710; 1906, § 3070; Hemingway’s 1917, § 2430; 1930, § 2270; 1942, § 368.
This repeal covers a range. One notice repeals §§ 85-7-181 through 85-7-185 together, so the sections numbered between them have no separate entry anywhere in the chapter. They are repealed too.
Repealed by Laws 2014, ch. 487, § 24, effective upon approval April 11, 2014.
§ 85-7-181. [Codes, 1880, § 1381; 1892, § 2714; 1906, § 3074; Hemingway’s 1917, § 2434; 1930, § 2274; 1942, § 372; Laws, 1904, ch. 153; Laws, 1918, ch. 128; Laws, 1987, ch. 392, § 2; Laws, 2010, ch. 372, § 3, eff from and after July 1, 2010.]
§ 85-7-183. [Codes, Hemingway’s 1921 Supp. § 2434a; 1930, § 2275; 1942, § 373; Laws, 1918, ch. 128.]
§ 85-7-185. [Codes, Hemingway’s 1921 Supp. § 2434b; 1930, § 2276; 1942, § 374; Laws, 1918, ch. 128; Laws, 2010, ch. 372, § 4; Laws, 2012, ch. 357, § 1, eff from and after July 1, 2012.]
If only a performance bond has been provided in accordance with this chapter and if no suit shall be brought by the obligee within six (6) months from the date of the earlier of final completion or actual use or occupancy of the project for its intended purpose, then any person supplying labor or materials to the bond principal on the project shall have a right of action on said bond for his use and benefit against said bond principal and the sureties thereon and to prosecute same to final judgment and execution, subject to the rights and demands of the bond obligee.
Codes, Hemingway’s 1921 Supp. § 2434c; 1930, § 2277; 1942, § 375; Laws, 1918, ch. 128; Laws, 2005, ch. 461, § 1, eff from and after July 1, 2005.
(1) Suit on a performance claim by an obligee on a bond given in accordance with this chapter shall be commenced as follows:
(a) If the obligee is the owner of the project being constructed, such obligee shall bring suit within one
(1) year after the earlier of final completion or actual use or occupancy of the project for its intended purpose; or
(b) If the obligee is other than an owner of the project being constructed, such obligee shall bring suit within one (1) year after such obligee receives final payment with respect to the project.
(2) When suit is instituted on a claim for payment on a payment bond given in accordance with this chapter, it shall be commenced within one (1) year after the day on which the last of the labor was performed or material or rental or lease equipment was supplied by the person bringing the action and not later.
(3) Any suit on a bond given in accordance with this chapter shall be brought in the county in which the contract or some part thereof was performed or in the county in which service of process may be obtained upon either the principal or the surety on such bond.
Codes, Hemingway’s 1921 Supp. § 2434d; 1930, § 2278; 1942, § 376; Laws, 1918, ch. 128; Laws, 1994, ch. 626, § 5; Laws, 2005, ch. 461, § 2; Laws, 2010, ch. 372, § 5, eff from and after July 1, 2010.
If only a performance bond is given in accordance with this chapter and if suit is instituted on said performance bond only one (1) action shall be brought for performance and payment claims and any person entitled to sue may upon application intervene and be made a party to said suit and such intervention must occur within the time limited for such person to bring an original action; provided, however, if a separate payment bond is given then only one (1) separate action for payment claims shall likewise be brought on the payment bond and intervention shall be allowed in accordance with this statute.
Codes, Hemingway’s 1921 Supp. § 2434e; 1930, § 2279; 1942, § 377; Laws, 1918, ch. 128; Laws, 2005, ch. 461, § 3, eff from and after July 1, 2005.
If only a performance bond is given in accordance with this chapter and the recovery on the performance bond should be inadequate to pay the full amount found due including amounts due the obligee, judgment shall be given after the performance bond obligee is fully satisfied for all its claims, demands, rights and damages to each person, including reasonable attorney’s fees in an amount to be set by the judge, pro rata of the amount of the recovery. The surety on said performance bond may pay into court for distribution the full amount of its liability, less any amount which may have been paid to the performance bond obligee by reason of the execution of said bond, and upon so doing the surety will be relieved from further liability.
Codes, Hemingway’s 1921 Supp. § 2434f; 1930, § 2280; 1942, § 378; Laws, 1918, ch. 128; Laws, 1987, ch. 392, § 3; Laws, 2005, ch. 461, § 4, eff from and after July 1, 2005.
To all suits instituted under the provisions of this chapter the parties interested shall be summoned as provided by Section 85-7-145; provided further that where any contractors’ bond has been executed and delivered under any of the foregoing sections of this chapter and the contractor or principal obligor in said bond, or any one or more of said principal obligors therein shall be a non-resident or shall remove from the state, or so conceal himself therein that service of process cannot be directly made upon him personally, then in such case personal service of summons for said absent or absconding principal obligor may be made upon the insurance commissioner of the State of Mississippi in like manner, with the same procedure thereabout, and with the same effect as process may be served on said commissioner in cases of a defendant foreign insurance company; and the delivery of any such bond within this state shall be deemed equivalent to the appointment, by the principal obligors and by the surety or sureties therein, of the state insurance commissioner or his successors in office to be the true and lawful attorney of said obligors upon whom may be served all lawful process in any action or proceeding arising under said bond when for any one of the reasons aforesaid the said principal obligors or any one of them cannot be otherwise served with personal summons in this state, and the delivery of any bond in this chapter mentioned shall be a signification of the agreement and power of attorney of the said principal obligor or obligors and of said sureties that any such process against said principal or principals which is so served shall be of the same legal force and validity as if served upon the said principal or principals personally.
Codes, Hemingway’s 1921 Supp. § 2434g; 1930, § 2281; 1942, § 379; Laws, 1918, ch. 128.
This repeal covers a range. One notice repeals §§ 85-7-197 through 85-7-201 together, so the sections numbered between them have no separate entry anywhere in the chapter. They are repealed too.
Repealed by Laws 2014, ch. 487, § 24, effective upon approval April 11, 2014.
§ 85-7-197. [Codes, 1930, § 2282; 1942, § 380; Laws, 1928, ch. 136; Laws, 1984, ch. 319, eff from and after July 1, 1984..]
§ 85-7-199. [Codes, 1930, § 2283; 1942, § 381; Laws, 1928, ch. 136.]
§ 85-7-201. [Codes, 1930, § 2284; 1942, § 382; Laws, 1928, ch. 136.]
As used in Sections 85-7-221 through 85-7-233, the term “person” shall mean a natural person, partnership, corporation, or other legal entity.
Codes 1942, § 382-01; Laws, 1946, ch. 468, §§ 1-8; Laws, 1962, ch. 489, eff 30 days from and after passage (approved June 1, 1962).
Any garment, clothing, wearing apparel or household goods, which have been repaired, altered, dyed, cleaned, pressed, glazed or laundered, remaining in the possession of a person for a period of ninety (90) days or more, may be sold to pay reasonable or agreed charges, together with any costs or expenses provided for in Sections 85-7-221 through 85-7-233. Except as otherwise provided in Section 85-7-235, the person to whom such charges are payable and owing shall first notify the owner or owners of the proposed sale of the articles belonging to them and the amount of the charges due thereon in the manner prescribed in Section 85-7-227.
Codes, 1942, § 382-01; Laws, 1946, ch. 468 §§ 1-8; Laws, 1962, ch. 489; Laws, 1992, ch. 315, § 1, eff from and after July 1, 1992.
All garments, clothing, wearing apparel, or household goods placed in storage, or on which any of the services or labors mentioned in Section 85-7-223 have been performed and then placed in storage, by agreement and remaining in the possession of a person without the reasonable or agreed charges having been paid for a period of ninety (90) days, may be sold to pay said charges, provided that the person has notified the owner or owners thereof of the sale as prescribed in Section 85-7-227. Persons operating as warehouses or warehousemen shall not be affected by this section.
Codes, 1942 § 382-01; Laws, 1946, ch. 468, §§ 1-8; Laws, 1962, ch. 489; Laws, 1992, ch. 315, § 2, eff from and after July 1, 1992.
The mailing by United States certified mail, return receipt requested, of a letter with a return address marked thereon, addressed to the owner or owners, at their last known address or the address given at the time of delivery of such articles to the person, shall constitute notice under the provisions of Sections 85-7-221 through 85-7-233. The letter shall state that the articles upon which the charges are owing will be disposed of unless they are redeemed within thirty (30) days of the mailing of the notice. Said notice shall be mailed at least thirty (30) days before the articles belonging to such owner or owners may be sold for charges due thereon. The cost of mailing said letter shall be added to the charges.
Codes, 1942, § 382-01; Laws, 1946, ch. 468, §§ 1-8; Laws, 1962, ch. 489; Laws, 1992, ch. 315, § 3, eff from and after July 1, 1992.
If the chattel or chattels are not redeemed within thirty (30) days after the mailing of such letter, the person may sell such articles on the day and at the time and place specified in such letter. Such sales may be made either at public auction or by private sale. The proceeds of the sale in excess of the charges and necessary expenses of the procedure required by Sections 85-7-221 through 85-7-233, shall be held by the person for a period of six (6) months, and if not reclaimed by the owner thereof within that time shall escheat to the county and be paid over to the chancery clerk to be covered into the general fund of the county in which the sale was held.
Codes, 1942, § 382-01; Laws, 1946, ch. 468, §§ 1-8; Laws, 1962, ch. 489, eff 30 days from and after passage (approved June 1, 1962).
All persons, taking advantage of Sections 85-7-221 through 85-7-233, must keep posted at all times in a prominent place in their receiving office or offices, two (2) notices of dimensions of not less than eight and one-half (8-½) by eleven (11) inches which read as follows: “Not responsible for goods left on hand for more than ninety (90) days. All articles cleaned, pressed, glazed, laundered, washed, altered, dyed or repaired, and not called for in ninety (90) days, will be sold to pay charges,” and “All articles which are stored by agreement and upon which the charges are not paid for ninety (90) days will be sold to pay charges.”
Codes, 1942, § 382-01; Laws, 1946, ch. 468, §§ 1-8; Laws, 1962, ch. 489; Laws, 1992, ch. 315, § 4, eff from and after July 1, 1992.
The purpose and intent of Sections 85-7-221 through 85-7-233 is to provide an inexpensive means of enforcing liens for small amounts, and to that end the provisions of said sections shall be construed to create a lien in addition to, and shall not exclude, any liens which may exist by virtue of either the common law or any other statute of the State of Mississippi.
Codes, 1942, § 382-01; Laws, 1946, ch. 468, §§ 1-8; Laws, 1962, ch. 489, eff 30 days from and after passage (approved June 1, 1962).
If any person fails to claim any garment, clothing, wearing apparel, household goods or other article delivered to any laundry or dry cleaning establishment described in Sections 85-7-223 and 85-7-225 and displaying the notice described in Section 85-7-231, for a period of one hundred eighty (180) days, the laundry or dry cleaning establishment, without giving notice to the owner, may dispose of such garment, clothing, wearing apparel, household goods, or other article by whatever means it may choose, without liability or responsibility to the owner.
Laws, 1992, ch. 315, § 5, eff from and after July 1, 1992.
(1) The owner of a motor vehicle that has been towed at his request or at the direction of a law enforcement officer, or towed upon request of a real property owner upon whose property a vehicle has been left without permission of the real property owner, shall be liable for the reasonable price of towing and storage of such vehicle; and the towing company to whom the price of such labor and storage costs may be due shall have the right to retain possession of such motor vehicle until the price is paid.
(2) Within twenty-four (24) hours, the towing company shall report to the local law enforcement agency having jurisdiction any vehicle that has been towed unless the vehicle was towed at the request of the owner of the vehicle. If the owner of a towed vehicle has not contacted the towing company within five
(5) business days of the initial tow, the towing company shall obtain from the appropriate authority the names and addresses of any owner and lienholder. If the information from the appropriate authority fails to disclose the owner or lienholder, a good faith effort shall be made by the towing company to locate ownership, including a check for tag information, inspection sticker, or any papers in the vehicle that may indicate ownership. Upon location of the owner and lienholder, the towing company shall notify them by registered mail of the amount due for towing, postmarked no later than the tenth day following the initial tow. If such amount shall not be paid within thirty (30) days from the initial tow, the towing company to whom such charges are payable shall notify by certified mail any legal owner and holder of any lien, as disclosed by the motor vehicle title records or other investigation, of notice of sale of the property. If such property has not been redeemed within ten (10) days after the mailing of the certified letter, the towing company may commence sale of the property at public auction. The towing company shall publish for two
(2) consecutive weeks a notice of sale in the newspaper having circulation in the county where the vehicle was initially towed. The proceeds of the sale of such property in excess of the amount needed to pay the towing, reasonable storage and necessary expenses of the procedures required by this section shall be held by the towing company for a period of six (6) months, and, if not reclaimed by the owner thereof within such time, shall become the property of the county and be paid to the chancery clerk of the county in which the sale was held to be deposited into the county general fund, subject, however, to any rights of the recorded lienholder.
(3) The failure to make a good faith effort to comply with the requirements of this section shall preclude the imposition of any storage charges or towing charges against the towed vehicle.
(4) Every towing company shall maintain accurate records for a period of three (3) years, which records shall identify the vehicles it has towed and stored and all procedures that it has taken to comply with the provisions of this chapter.
Laws, 1995, ch. 578, § 1, eff from and after July 1, 1995; Laws, 2020, ch. 462, § 1, eff from and after passage (approved July 8, 2020).
Unless otherwise expressly provided, the liens created or mentioned in this chapter shall exist by virtue of the relation of the parties, and without any writing, or if in writing, without recording; and the rights and liens conferred may be asserted and enforced by the assigns and personal representatives of the lienor.
Codes, 1880, § 1361; 1892, § 2683; 1906, § 3043; Hemingway’s 1917, § 2401; 1930, § 2273; 1942, § 371.
All liens for erecting, constructing, altering, or repairing the same building, house, structure, fixture, boat, water craft, railroad, or railroad embankment shall be concurrent, and shall be paid in proportion out of the proceeds of the property when sold; and in case the sheriff shall have doubts as to the proper application of the money, he may return the same to the court, stating the question, for its determination.
Codes, 1857, ch. 39, art. 14; 1871, § 1617; 1880, § 1392; 1892, § 2712; 1906, § 3072; Hemingway’s 1917, § 2432; 1930, § 2272; 1942, § 370.
Justice courts shall have jurisdiction of cases arising under this chapter where the amount does not exceed the jurisdictional amount provided for in Section 9-11-9, Mississippi Code of 1972, and the proceedings shall be as nearly in accordance with the provisions of this chapter as may be practicable, and the parties shall have the right of appeal as in other cases. But the sale of buildings under their judgments may be advertised and made as sales of personal property levied on under execution issued by the justice court.
Codes, Hutchinson’s 1848, ch. 45, art. 7 (3); 1857, ch. 39, art. 15; 1871, § 1618; 1880, § 1393; 1892, § 2713; 1906, § 3073; Hemingway’s 1917, § 2433; 1930, § 2271; 1942, § 369; Laws, 1989, ch. 406, § 1, eff from and after July 1, 1989.
(1) Except where the context otherwise requires in subsection (2) of this section, as used in Sections 85- 7-301 through 85-7-315, the term:
(a) “Qualifying hospital” means any hospital designated as a burn center by the State Department of Health.
(b) “Qualifying practice” means any physician practice that provides care, treatment or services to a patient who has been admitted to a qualifying hospital.
(c) “Care, treatment or services” means burn care or burn-related treatment, or services furnished by a qualifying hospital or qualifying practice.
(d) “Uncompensated traumatic burn care” means any portion of care, treatment or services rendered by a qualifying hospital or qualifying practice with respect to a patient whose burn care, treatment or services arose out of a single accident or occurrence for which the qualifying hospital or qualifying practice did not receive payment.
(2) Any person, firm, authority or corporation operating a qualifying hospital or qualifying practice providing traumatic burn care in this state shall have a lien for the reasonable charges for care, treatment or services of an injured person for uncompensated traumatic burn care, which lien shall be only upon any and all causes of action accruing to the person to whom the care was furnished or to the legal representative of the person on account of injuries that gave rise to the causes of action and that necessitated the care, treatment or services, subject and subordinate, however, to any attorney’s lien or fees. The lien provided for in this subsection is only a lien against those causes of action and shall not be a lien against the injured person, the legal representative, or any other property or assets of those persons and shall not be evidence of the person’s failure to pay a debt. This subsection shall not be construed to interfere with the exemption from Sections 85-7-301 through 85-7-315 provided by Section 85-7-309, nor shall this subsection prohibit an injured person or his legal representative from negotiating with a qualifying hospital or practice.
Laws, 2013, ch. 512, § 1; reenacted without change, Laws, 2016, ch. 394, § 1, eff from and after July 1, 2016; reenacted without change, Laws, 2019, ch. 425, § 1, eff from and after July 1, 2019.
(1) In order to perfect the lien provided for in Section 85-7-301, the operator of the qualifying hospital or qualifying practice:
(a) Shall, not less than fifteen (15) days before the date of filing the statement required under paragraph
(b) of this subsection, provide written notice to the patient and the legal representative of the patient, if applicable, and, to the best of the operator’s knowledge, the persons, firms, corporations and their insurers claimed by the injured person or the legal representative of the injured person to be liable for damages arising from the injuries and shall include in the notice a statement that the lien is not a lien against the patient or any other property or assets of the patient and is not evidence of the patient’s failure to pay a debt. The notice shall be sent to all those persons and entities by first-class and certified mail or statutory overnight delivery, return receipt requested; and
(b) Shall file in the office of the clerk of the chancery court of the county in which the qualifying hospital or qualifying practice is located and in the county in which the patient resides, if a resident of this state, a verified statement setting forth the name and address of the patient as it appears on the records of the qualifying hospital or qualifying practice; the name and location of the qualifying hospital or qualifying practice, and the name and address of the operator thereof; the dates of admission and discharge of the patient from the qualifying hospital, or with respect to a qualifying practice, the dates of treatment; the amount claimed to be due for the qualifying hospital or qualifying practice; and certification that the amount claimed is for treatment of uncompensated traumatic burn care, which statement must be filed within the following time period:
(i) If the statement is filed by a qualifying hospital, then the statement shall be filed within seventy-five
(75) days after the person has been discharged from the facility; or
(ii) If the statement is filed by a qualifying practice, then the statement shall be filed within ninety (90) days after the person first sought treatment from the practice for the injury.
(2) The filing of the claim or lien shall be notice thereof to all persons, firms or corporations liable for the damages, whether or not they received the written notice provided for in this section. The failure to perfect the lien by timely complying with the notice and filing provisions of subsection (1) of this section shall invalidate the lien, except as to any person, firm, or corporation liable for the damages, which receives before the date of any release, covenant not to bring an action, or settlement, actual notice of a notice and filed statement made under subsection (1) of this section, via hand delivery, certified mail, return receipt requested, or statutory overnight delivery with confirmation of receipt.
Laws, 2013, ch. 512, § 2; reenacted without change, Laws, 2016, ch. 394, § 2, eff from and after July 1, 2016; reenacted without change, Laws, 2019, ch. 425, § 2, eff from and after July 1, 2019.
The clerk of the chancery court shall endorse the date and hour of filing on the statement filed under Section 85-7-303; and, at the expense of the county, the clerk shall provide a lien book with a proper index in which the clerk shall enter the date and hour of the filing; the names and addresses of the qualifying hospital or qualifying practice, the operators thereof, and the patient; and the amount claimed. The information shall be recorded in the name of the patient.
Laws, 2013, ch. 512, § 3; reenacted without change, Laws, 2016, ch. 394, § 3, eff from and after July 1, 2016; reenacted without change, Laws, 2019, ch. 425, § 3, eff from and after July 1, 2019.
(1) No release of the cause or causes of action or of any judgment thereon or any covenant not to bring an action thereon shall be valid or effectual against the lien created by Section 85-7-301 unless the holder thereof is given notification of the results of the cause of action or executes a release of the lien; and the injured party (the “claimant”) or an assignee of the lien holder may enforce the lien by an action against the person, firm or corporation liable for the damages or the person, firm or corporation’s insurer. If the claimant prevails in the action and if the claimant’s balance of the award is insufficient to cover the medical liens, the court may determine pro rata compensation in favor of the claimant. In no case shall the payment towards the liens exceed fifty percent (50%) of the claimant’s balance. Any qualifying hospital or qualifying practice that receives payments under the authority of Sections 85-7-301 through 85-7-315 shall release the claimant from any further liens for the cost of hospital care, treatment or services provided for which the lien was placed. The action shall be begun against the person liable for the damages or the person’s insurer within one (1) year after the date the liability is finally determined by a settlement, by a release, by a covenant not to bring an action, or by the judgment of a court of competent jurisdiction.
(2) No release or covenant not to bring an action that is made before or after the patient was discharged from the qualifying hospital or qualifying practice shall be effective against the lien perfected in accordance with Section 85-7-303, if the lien is perfected before the date of the release, covenant not to bring an action, or settlement unless notification is given to the qualifying hospital or qualifying practice; however, any person, firm or corporation that consummates a settlement, release or covenant not to bring an action with the person to whom care, treatment or services were furnished and that first procures from the injured party an affidavit as prescribed in subsection (3) of this section shall not be bound or otherwise affected by the lien except as provided in subsection (3) of this section, regardless of when the settlement, release or covenant not to bring an action was consummated.
(3) The affidavit shall affirm:
(a) That all bills incurred for treatment for the injuries for which a settlement is made have been fully paid or resolved; and
(b) The county of residence of the affiant, if a resident of this state; however, the person taking the affidavit shall not be protected thereby where the affidavit alleges the county of the affiant’s residence and the lien of the qualifying hospital or qualifying practice is at that time on file in the office of the chancery clerk and is recorded in the name of the patient as it appears in the affidavit.
Laws, 2013, ch. 512, § 4; reenacted without change, Laws, 2016, ch. 394, § 4, eff from and after July 1, 2016; reenacted without change, Laws, 2019, ch. 425, § 4, eff from and after July 1, 2019.
Sections 85-7-301 through 85-7-315 shall not apply to:
(a) A cause of action filed by a person who received care, treatment or services from a qualifying hospital or a qualifying practice whose medical costs were paid by the Centers for Medicare and Medicaid Services.
(b) Any monies becoming due under the Workers’ Compensation Law.
Laws, 2013, ch. 512, § 5; reenacted without change, Laws, 2016, ch. 394, § 5, eff from and after July 1, 2016; reenacted without change, Laws, 2019, ch. 425, § 5, eff from and after July 1, 2019.
No settlement or release entered into or executed before the entry of the injured party into the qualifying hospital shall be affected by or subject to the terms of Sections 85-7-301 through 85-7-315.
Laws, 2013, ch. 512, § 6; reenacted without change, Laws, 2016, ch. 394, § 6, eff from and after July 1, 2016; reenacted without change, Laws, 2019, ch. 425, § 6, eff from and after July 1, 2019.
Sections 85-7-301 through 85-7-315 shall not be construed to give any qualifying hospital or qualifying practice an independent right of action to determine liability for injuries sustained by a person or firm.
Laws, 2013, ch. 512, § 7; reenacted without change, Laws, 2016, ch. 394, § 7, eff from and after July 1, 2016; reenacted without change, Laws, 2019, ch. 425, § 7, eff from and after July 1, 2019.
Any person who gives any false affidavit as provided by Section 85-7-307 commits the offense of perjury.
Laws, 2013, ch. 512, § 8; reenacted without change, Laws, 2016, ch. 394, § 8, eff from and after July 1, 2016; reenacted without change, Laws, 2019, ch. 425, § 8, eff from and after July 1, 2019.
Laws, 2013, ch. 512, § 9; Laws, 2016, ch. 394, § 9, eff from and after July 1, 2016; repealed by Laws, 2019, ch. 425, § 9, eff from and after July 1, 2019.
The following words and phrases shall have the meanings ascribed herein unless the context clearly indicates otherwise:
(a) “Business day” means any day that is not a Saturday, Sunday, or legal holiday.
(b) “Contractor” means a contractor having privity of contract with the owner or lessee of the real estate.
(c) “Lien action” means a civil action against the owner of improved property to perfect and make permanent the lien created by Section 85-7-403.
(d) “Payment action” means a lawsuit, proof of claim in a bankruptcy case, or a binding arbitration.
(e) “Professional surveyor” has the meaning given in Section 73-13-71.
(f) “Materials” means materials, tools, appliances, machinery, or equipment used in making improvements to the real estate.
(g) “Materialmen” or “materialman” means all persons furnishing the materials, tools, appliances, machinery, or equipment included in the definition of materials to a contractor or to a subcontractor in privity with the contractor.
(h) “Professional engineer” has the meaning given in Section 73-13-3.
(i) “Residential property” means single-family and two-family, three-family, and four-family residential real estate.
(j) “Statutory overnight delivery” means delivery of a document through the United States Postal Service or through a commercial firm that is regularly engaged in the business of document delivery or document and package delivery in which the sender:
(i) Has directed that delivery be not later than the next business day following the day on which the document is received for delivery by the United States Postal Service or the commercial firm; and
(ii) Receives a receipt acknowledging receipt of the document signed by addressee or an agent of the addressee.
(k) “Subcontractor” means subcontractors having privity of contract with the contractor; “subcontractor” also means subcontractors having privity of contract with a subcontractor having privity of contract with the contractor.
(l) “Registered architect” has the meaning given in Section 73-1-3.
(m) “Design professional” includes professional surveyors, professional engineers and registered architects.
Laws, 2014, ch. 487, § 1, eff from and after passage (approved Apr. 11, 2014).
(1) The following persons shall each have a special lien on the real estate or other property for which they furnish labor, services or materials:
(a) All contractors, all subcontractors and all materialmen furnishing material for the improvement of real estate;
(b) All registered architects or professional engineers furnishing plans, drawings, designs, or other architectural or engineering services on or with respect to any real estate;
(c) All registered land surveyors performing or furnishing services on or with respect to any real estate.
(2) Each special lien specified in subsection (1) of this section may attach to the real estate of the owner for which the labor, services or materials are furnished if they are furnished at the instance of the owner, design professional or contractor or a subcontractor having direct privity of contract with a contractor, and shall include the value of work done and labor, services or materials furnished.
(3) Each special lien specified in subsection (1) of this section shall be limited to the amount due and owing the lien claimant under the terms of its express or oral contract, subcontract or purchase order subject to Section 85-7-405(4).
(4) Each special lien specified in subsection (1) of this section shall include interest on the principal amount due in accordance with Section 75-17-1, 75-17-7 or 75-17-19 as applicable by law.
(5) Notwithstanding any other provision of this article, no lien shall exist in favor of any contractor or subcontractor who is not licensed as required by either Section 31-3-1 et seq., or Section 73-59-1 et seq., or who contracts with any contractor or subcontractor who is not licensed as required. Upon request, any contractor or subcontractor is required to provide any owner, contractor, subcontractor or materialman a copy of that person’s current license.
Laws, 2014, ch. 487, § 2, eff from and after passage (approved Apr. 11, 2014).
(1) To make good a lien created in Section 85-7-403(1), it must be created and declared in accordance with the following provisions, and on failure of any of them the lien shall not be effective or enforceable:
(a) A substantial compliance by the party claiming the lien with the party’s contract, subcontract or purchase order for work performed or labor, services or material provided in the building, repairing, or improving of real estate; for architectural services furnished; for registered land surveying or registered professional engineering services furnished or performed; or for materials or machinery furnished;
(b) The filing for record of the claim of lien in the office of the clerk of the chancery court of the county where the property is located within ninety (90) days after the claimant’s last work performed, labor, services or materials provided, the furnishing of architectural services, or the furnishing or performing of surveying or engineering services. The lien shall include a statement regarding its expiration pursuant to Section 85-7-421(1) and a notice to the owner of the property on which a claim of lien is filed that the owner has the right to contest the lien; the absence of the statement or notice shall invalidate the lien. The claim shall be in substance as follows: “A.B., a mechanic, contractor, subcontractor, materialman, machinist, manufacturer, registered architect, registered forester, registered land surveyor, registered professional engineer, or other person (as the case may be) claims a lien in the amount of (specify the amount claimed) on the building, structure, house, factory, mill, machinery, or railroad (as the case may be) and the premises or real estate on which it is erected or built, of C.D. (describing the houses, premises, real estate, or railroad), for satisfaction of a claim which became due on (specify the date the claim was due, which is the same as the last date the labor, services or materials were supplied to the premises) for work performed or labor, services provided (or whatever the claim may be). THIS CLAIM OF LIEN EXPIRES AND IS VOID ONE HUNDRED EIGHTY (180) DAYS FROM THE DATE OF FILING OF THE CLAIM OF LIEN IF A PAYMENT ACTION IS NOT FILED BY THE CLAIMANT WITHIN THAT TIME PERIOD. NOTICE TO OWNER OF PROPERTY: You have the right to contest this claim of lien pursuant to Mississippi law.” No later than two (2) business days after the claim of lien is filed of record, the lien claimant shall send a true and accurate copy of the claim of lien by registered or certified mail or statutory overnight delivery to the owner of the property or, if the owner’s address cannot be found, the contractor, as the agent of the owner; if the property owner is an entity on file with the Secretary of State’s office, sending a copy of the claim of lien to the entity’s address or the registered agent’s address shall satisfy this requirement. If the lien claimant is not the contractor, he shall also send a copy of the claim of lien within two (2) business days by registered or certified mail or statutory overnight delivery to the contractor or to the contractor’s registered agent.
(c)
(i) A payment action for the recovery of the amount of the lien claimant’s claim against the party he contracted with shall be commenced in county, circuit or chancery court within one hundred eighty (180) days from the date of filing for record of the lien claimant’s claim of lien. A lis pendens notice shall be filed with the commencement of the action with a copy to the owner and contractor;
(ii) The payment action shall be commenced by summons and complaint. The defendants shall be summoned, as in other actions at law, to appear and defend the action; and in case any necessary party defendant shall be a nonresident of or absent from the state, or cannot be found, he may be made a party by publication, as in cases of nonresident or absent defendants in chancery, requiring him to appear on a day to be therein named; and in default of appearance, the same proceedings shall be had as if the defendant had been duly summoned and made default;
(iii) Nothing in this paragraph (c) shall prejudice the parties’ contractual rights to arbitration, as applicable;
(d)
(i) The commencement of a payment action under paragraph (c) is not required if the owner has not made payment to the contractor and the lien claimant cannot secure a final judgment against the party with whom the lien claimant contracted because: 1. The party has been adjudicated a bankrupt; 2. If an individual, the party is deceased; or 3. Payment is not due to the lien claimant under the applicable contract agreement until after payment is received by the party with whom the lien claimant contracted.
(ii) If paragraph (d) (i) of this section applies, the person or persons furnishing labor, services or materials may enforce the lien directly against the property in a lien action against the owner if it is filed within the required time for filing a payment action, with the judgment rendered in the proceeding to be limited to a judgment in rem against the property improved and to impose no personal liability upon the owner of the property. A lis pendens notice shall be filed with the commencement of this lien action with a copy to the owner and the contractor.
(iii) Nothing in this paragraph (d) shall impact or negate the rights and defenses available pursuant to Section 85-7-413 or 85-7-419.
(e) A claim of lien may be amended at any time to increase or reduce the amount claimed, and the amended claim of lien shall relate back to the date of filing for record of the original claim of lien. An amended claim of lien filed for record pursuant to this subsection shall be sent to the owner of the property in the same manner as required for a claim of lien in subsection (1)(b) of this section and shall be in substance as follows: “That certain claim of lien filed by A.B. against property of C.D. on (date) and recorded at book (book#), page (page#) in the lien index of (name of county) County is hereby amended by increasing/reducing (cross out one) the amount of the claim of lien to (specify reduced amount claimed). The remaining terms of the original claim of lien are hereby incorporated by reference into this amended claim of lien. This amended claim of lien relates back to the date that the original claim of lien was filed for record.”
(2)
(a) The liens specified in Section 85-7-403 (“construction liens”) shall be inferior to liens for taxes, but construction liens shall be superior in priority to all other liens except as specified in subsection (2)(b) and (c).
(b) Except as provided in subsection (2)(c), a construction lien shall have priority over all other liens, deeds of trust, mortgages or encumbrances filed after the date and time of the filing of the notice of lien in the office of the chancery clerk of the county in which the land is located. All liens, deeds of trust, mortgages and encumbrances filed before the date and time of the filing of the notice of construction lien shall have priority over the construction lien, whether the work secured by the lien was performed before or after the filing of the lien, deed of trust, mortgage or other encumbrance. This priority will extend to amendments or restatements and assignments of the lien, deed of trust, mortgage and other encumbrance. The priorities in this subsection are determined by the date and time of filing and without regard to the actual knowledge of the parties of unrecorded liens. Enforcement of a construction lien shall not affect any prior deeds of trust or other liens, and a purchaser, in connection with the enforcement of a construction lien, shall take the property subject to any prior liens, deeds of trust, mortgages or encumbrances of which the purchaser has actual or constructive notice on the date of the purchase. Foreclosure of any prior deeds of trust or other liens shall terminate and extinguish the subordinate construction lien or other interest as to the land and the buildings and improvements thereon, whether or not at the time of the foreclosure the construction lien or interest has been perfected in accordance with the provisions of this article, and the subordinate lienholder shall have the rights in any excess proceeds received by the foreclosing lienholder as provided by law.
(c) A deed of trust, mortgage, assignment of leases and rents, fixture filing or other security agreement affecting real property is a construction mortgage to the extent it secures a loan or loans for the purpose of financing the repair or construction of an improvement on the real property, which may include the acquisition cost of the real property. A construction lien is subordinate to a construction mortgage if the construction mortgage is filed in the land records before a notice of a claim of lien is filed pursuant to Section 85-7-405 and the lender, secured party, mortgagee, beneficiary or holder of the construction mortgage obtained either: (i) an affidavit or sworn statement from the owner to the effect that no work has been performed on, or materials delivered to, the real property; or (ii) an affidavit or sworn statement from the contractor, or owner if there is no contractor, as provided in Section 85-7-413(1) (b) regarding payment for work, materials or services provided. A construction mortgage has this priority for all loan advances secured thereby regardless of whether the advances are made before or after the filing of a notice of a construction lien, and this priority will extend to amendments, restatements and refinancings of the construction mortgage.
(3)
(a) Following compliance with the requirements of subsection (1) of this section, in any proceeding against the owner to enforce a lien created by Section 85-7-403 against the property, the party having a direct contractual relationship with the lien claimant shall not be a necessary party, but may be made a party. The design professional, contractor or subcontractor, or all of them, may intervene in the proceedings at any time before judgment for the purpose of resisting the establishment of the lien or of asserting against the lien claimant any claim of the contractor or subcontractor growing out of or related to the contract, subcontract or purchase order upon which the asserted lien is based.
(b) Any party to an action against the owner to enforce a lien against the property, by appropriate plea, may put in issue the fact of indebtedness or the existence of the lien, or both, and may interpose any other defense or join any counterclaim applicable to the action; and if the court by its finding, or the jury by their verdict, as the case may be, ascertain that the plaintiff has a lien as claimed, judgment shall be entered for the amount secured thereby, plus interest and costs, against the party liable for the same.
(c) The court, in its discretion, may award reasonable costs, interest and attorney’s fees to the prevailing party in an action against the owner to enforce a lien against the property.
(d) All liens arising under Section 85-7-403 shall have an equal priority, and be first paid out of the proceeds of the sale of the property, or money collected from the owner; and if the proceeds and money are insufficient to satisfy the liens in full, the proceeds and money shall be distributed pro rata among the claimants thereof or as otherwise ordered by the court.
(4) In no event shall the aggregate amount of liens created by Section 85-7-403 exceed the contract price as determined by the terms of the contract or other agreement between the owner and contractor for the improvements made or services performed.
(5)
(a) If payments have been made in reliance upon either lien waivers issued by lien claimants pursuant to Section 85-7-413(1) (a) or sworn written statements of the contractor pursuant to Section 85-7-413(1)
(b), the aggregate amount of liens created by Section 85-7-403 in favor of subcontractors and materialmen who are not in privity of contract with the owner shall not exceed the unpaid balance of the contract price under the terms of the contract or agreement between the owner and the contractor at the time the first notice of lien is filed pursuant to this section.
(b) If payments have been made in reliance upon either lien waivers issued by lien claimants pursuant to Section 85-7-413(1) (a) or sworn written statements of the contractor pursuant to Section 85-7-413(1)
(b), the aggregate amount of liens created by Section 85-7-403 in favor of design professionals who are not in privity of contract with the owner shall not exceed the unpaid balance of the contract price under the terms of the contract or agreement between the owner and the design professional who is in privity of contract with the owner at the time the first notice of lien is filed pursuant to this section.
Laws, 2014, ch. 487, § 3, eff from and after passage (approved Apr. 11, 2014).
(1) Upon the written request of the property owner by registered or certified mail or statutory overnight delivery, the contractor shall furnish to the owner a complete list of all subcontractors and materialmen and upon written request from the contractor, all subcontractors shall provide the same information. If the contractor or subcontractor willfully fails or refuses to furnish the list or to give the information to the owner or contractor within a reasonable time, he shall thereby forfeit his right to a lien under this article. Similarly, if the contractor or subcontractor fails to pay any materialman or subcontractor in direct privity with him in accordance with any contract, subcontract or purchase order specifically requiring him to do so, he shall thereby forfeit his right to a lien under this article.
(2) For any person having a right to a lien pursuant to Section 85-7-403 who does not have privity of contract with the contractor, or, if there is no contractor, with the owner, and is providing labor, services or materials for the improvement of property, within thirty (30) days following the first delivery of labor, services or materials to the property, the person shall give a written notice to the contractor, or, if there is no contractor, to the owner, either by e-mail with a confirmed receipt, registered or certified mail, or statutory overnight delivery setting forth the following:
(a) The name, address, and telephone number of the person providing labor, services or materials;
(b) The name and address of each person at whose instance the labor, services or materials are being furnished;
(c) The name of the project and location of the project to which labor, services or materials are provided; and
(d) A description of the labor, services or materials being provided and, if known, the contract price or anticipated value of the labor, services or materials to be provided. If the person not in privity of contract with the contractor fails to provide the required notice to the contractor, he shall thereby forfeit his right to a lien under this article.
(3) When a claimant is requested to execute a waiver and release in exchange for or to induce the making of an interim or final payment in accordance with Section 85-7-419(2) or (3), and does so, if payment is made pursuant to the waiver and release and the design professional, contractor or subcontractor, without good cause, in turn willfully fails or refuses to pay the claimant the amount claimed as set forth in the waiver and release, then the design professional, contractor or subcontractor, as the case may be, shall be liable to the claimant in the amount of three (3) times the amount claimed on the face of the waiver and release. Good cause includes, but is not limited to, any defense available pursuant to the terms of the applicable contract, subcontract or purchase order.
(4) The provisions of this section do not apply to single-family residential construction.
Laws, 2014, ch. 487, § 4, eff from and after passage (approved Apr. 11, 2014).
(1) As to single-family residential construction only, payment made by or on behalf of the owner to a contractor or design professional in privity with the owner, for the work of a subcontractor, materialman, professional engineer or professional surveyor, shall be an absolute defense to any claim of lien made by the subcontractor, materialman, professional engineer or professional surveyor, (a) but only to the extent of the payment actually made by or on behalf of the owner to the contractor or design professional in privity with the owner, and (b) only to the extent the owner has not received a pre-lien notice in accordance with subsection (2) of this section before the payment.
(2) As to single-family residential construction only, as a condition precedent of any right to a special lien under Section 85-7-403 in favor of a subcontractor, materialman or design professional not in privity with the owner, the claimant must provide the owner a pre-lien written notice at least ten (10) days before filing a claim of lien under Section 85-7-405, which can be evidenced by any reliable means of delivery.
(3) The claimant’s written notice required in subsection (2) shall be in substantially the same form as the Pre-Lien Notice set forth in Section 85-7-433(5).
Laws, 2014, ch. 487, § 5, eff from and after passage (approved Apr. 11, 2014).
(1)
(a) When the building or improvement is erected under or by virtue of any contract with a lessee in possession, and the erection thereof is not in violation of the terms or conditions of the lease, the lien shall attach to the building or improvement, and to the unexpired term of the lease, and the holder of the lien shall have the right to avoid a forfeiture of the lease by paying rent to the lessor, as it becomes due and payable, or by the performance of any other act or duty to which the lessee is bound.
(b) If the lien can be enforced by a sale of the building or improvement, the purchaser may, at his election, (i) become entitled to the possession of the demised premises, and to remain therein for the unexpired term, by paying rent to the lessor, or performing any other act or duty to which the lessee was bound, as if he were the assignee of the lease; or (ii) he may, within sixty (60) days after the sale, remove the building or improvement from the premises, but only to the extent that it is detachable from the real property without injury to the real property; and if he elects to take possession and to remain therein until the expiration of the term of the lease, he may, within a reasonable time after the expiration of the term, remove the building or improvement from the premises, but only to the extent that it is detachable from the real property without injury to the real property.
(c) If, before a sale, the holder of the lien has made any payments of rent, or other pecuniary compensation to the lessor, which ought to have been paid by the lessee, he shall be reimbursed for the payments from the proceeds of the sale.
(2) When a lien attaches under subsection (1) of this section, the lessor, at any time before a sale of the property, shall have a right to discharge the lien by paying to the holder the amount secured thereby, including costs and all monies he may have paid to the lessor to prevent a forfeiture of the lease, and, after a sale, he shall have the right to prevent the removal of the building or improvement from the premises by paying to the purchaser the value of the building or improvement; and upon the payment, either to the holder of the lien or to the purchaser, the building or improvement shall become the property of the lessor.
(3) Notwithstanding subsections (1) and (2) of this section, unless done by the written consent of the owner, only the building or improvements erected, and then only to the extent that they are detachable from the real property without injury to the real property, as well as the estate of the tenant in the land, shall be subject to the lien.
Laws, 2014, ch. 487, § 6, eff from and after passage (approved Apr. 11, 2014).
(1) The special lien specified in Section 85-7-403(1) shall be dissolved and unenforceable if the owner, purchaser from owner, or lender providing construction or purchase money or any other loan secured by real estate shows that:
(a) Payment or release of funds was made by the owner, purchaser or lender in reliance upon a lien waiver issued by the lien claimant pursuant to Section 85-7-419; or
(b) Payment or release of funds was made by the owner, purchaser or lender in reliance upon a sworn written statement of the contractor that the agreed price or reasonable value of the labor, services or materials has been paid or waived in writing by the lien claimant. If the sworn written statement, as required by this paragraph (b), is falsely and knowingly made, then all parties injured thereby shall have a right of action against the maker of the sworn written statement for damages in the amount of three
(3) times their actual damages sustained on account of the willfully and falsely made sworn written statement.
(2) In a lien action, the owner of the improved real estate shall have a defense to the extent of any payment for the work, materials or services that are the subject of the lien made to a contractor or design professional in privity of contract with the owner or to a subcontractor in good-faith reliance upon receipt of a lien waiver pursuant to subsection (1)(a), or upon receipt of a sworn written statement pursuant to subsection (1)(b), and before receipt of notice of the filing by the lien claimant of a notice of lien pursuant to Section 85-7-405 or an affidavit of nonpayment pursuant to Section 85-7-419(5)(b).
Laws, 2014, ch. 487, § 7, eff from and after passage (approved Apr. 11, 2014).
(1) When any person entitled under this article to claim a lien against any real estate located in this state files a lien in the office of the clerk of the chancery court of the county in which the real estate is located, the owner of the real estate or the contractor or subcontractor employed to improve the property may, before or after foreclosure proceedings are instituted, discharge the lien upon the approval of a bond by the clerk of the chancery court. The bond shall be conditioned to pay to the holder of the lien the sum that may be found to be due the holder upon the trial of any payment action that may be filed by the lienholder to recover the amount of the claim within one hundred eighty (180) days from the time the claim of lien is filed or as otherwise required by Section 85-7-423. The bond shall be one hundred ten percent (110%) of the amount claimed under that lien and shall be either a cash bond or a bond with good security approved by the clerk of the chancery court and issued by any surety company authorized to do business in the State of Mississippi. Upon approval by the clerk of the bond, the real estate shall be discharged from the lien.
(2) Within seven (7) days of filing the bond required by subsection (1) of this section and any attachments, the party filing the bond shall send a notice of filing the bond and a copy of the bond by registered or certified mail or statutory overnight delivery to the lien claimant at the address stated on the lien or, if no address is shown for the lien claimant, to the person shown as having filed the lien on behalf of the claimant at the indicated address of the person and, if the bond is filed by a contractor or subcontractor, to the owner of the property and the contractor; however, if the lien claimant or the owner or contractor is an entity on file with the Secretary of State’s office, sending the notice of filing the bond and a copy of the bond to the company’s address or the registered agent’s address on file with the Secretary of State shall be deemed sufficient; failure to send the notice of filing the bond and copy of the bond shall not invalidate the bond for purposes of discharge of a claim of lien under this section. With respect to bonds secured by property, the clerk shall not accept any real property bond unless the real property is scheduled in an attached affidavit setting forth a description of the property and indicating the record owner thereof, including any liens and encumbrances and amounts thereof, the market value, and the value of the sureties’ interest therein, which affidavit shall be executed by the owner or owners of the interest; the bond and affidavit shall be recorded in the same manner and at the same cost as other deeds of real property. So long as the bond exists, it shall constitute a lien against the property described in the attached affidavit.
(3) The clerk of the chancery court shall have the right to rely upon the amount specified in the claim of lien in determining the sufficiency of any bond to discharge under this section. The failure to specify both the amount claimed due under the lien and the date the claim was due shall result in the lien not constituting notice for any purposes.
(4) The clerk of the chancery court shall be held harmless for good faith regarding any discretionary act in connection with approval of any bond provided for in this section.
Laws, 2014, ch. 487, § 8, eff from and after passage (approved Apr. 11, 2014).
If services are performed or furnished with respect to any real estate by any design professional who is a member of a partnership or who is an agent or employee of a corporation or an association and the contract for the services is made for or on behalf of the owner with the partnership or corporation or association, the partnership, corporation or association shall be entitled to all the privileges and benefits of Section 85-7-403, just as if the partnership, corporation or association were a design professional.
Laws, 2014, ch. 487, § 9, eff from and after passage (approved Apr. 11, 2014).
(1) A right to claim a lien or to claim upon a bond may not be waived in advance of furnishing of labor, services or materials. Any purported waiver or release of lien, bond claim or this article executed or made in advance of furnishing labor, services or materials is null, void and unenforceable.
(2) When a claimant is requested to execute a waiver and release in exchange for or in order to induce payment other than final payment, the waiver and release shall substantially follow the Interim Waiver and Release upon Payment form set forth in Section 85-7-433(1). The failure to correctly complete any of the blank spaces in the referenced form does not invalidate the form if the subject matter of the release reasonably may be determined.
(3) When a claimant is requested to execute a waiver and release in exchange for or in order to induce making of final payment, the waiver and release shall substantially follow the Waiver and Release upon Final Payment form set forth in Section 85-7-433(2). The failure to correctly complete any of the blank spaces in the referenced form does not invalidate the form if the subject matter of the release reasonably may be determined.
(4) Nothing contained in this section shall affect:
(a) The enforceability of any subordination of lien rights by a potential lien claimant to the rights of any other party which may have or acquire an interest in all or any part of the real estate or other property for which the potential lien claimant has furnished labor, services or material, even though the subordination is entered into in advance of furnishing labor, services or material, and even though the claimant has not actually received payment in full for its claim;
(b) The enforceability of any waiver of lien rights given in connection with the settlement of a bona fide dispute concerning the amount due the lien claimant for labor, services or material which have already been furnished; or
(c) The validity of a cancellation or release of a recorded claim of lien.
(5)
(a) When a waiver and release provided for in this section is executed by the claimant, it shall be binding against the claimant for all purposes, subject only to payment in full of the amount set forth in the waiver and release.
(b) Amounts shall conclusively be deemed paid in full upon the earliest to occur of:
(i) Actual receipt of funds;
(ii) Execution by the claimant of a separate written acknowledgment of payment in full; or
(iii) Sixty (60) days after the date of the execution of the waiver and release, unless before the expiration of the sixty-day period the claimant files in the county in which the property is located an affidavit of nonpayment, using substantially the affidavit of nonpayment form set forth in Section 85-7- 433(3), and sends a true and accurate copy of the affidavit of nonpayment to the owner of the property in the manner provided in Section 85-7-405 for sending a notice of a claim of lien to the owner.
(c) A claimant who is paid, in full, the amount set forth in the waiver and release form after filing an affidavit of nonpayment shall upon request execute in recordable form an affidavit swearing that payment in full has been received. Upon recordation thereof in the county in which the affidavit of nonpayment was recorded, the affidavit of nonpayment to which it relates shall be deemed void.
(d) Nothing in this section shall shorten the time within which to file a claim of lien.
(e) Except as provided in Section 85-7-413, a waiver and release provided in accordance with this section shall be suspended upon the filing of an affidavit of nonpayment until payment in full has been received. However, an affidavit of nonpayment shall not affect dissolution of the claimant’s lien or the availability or enforceability of any owner’s defenses pursuant to Section 85-7-413, if applicable.
(f) The claimant may rely upon the information contained in the waiver and release form when completing for filing the affidavit of nonpayment.
Laws, 2014, ch. 487, § 10, eff from and after passage (approved Apr. 11, 2014).
(1) Failure of a lien claimant to commence a payment action to collect the amount of his or her claim within one hundred eighty (180) days from the date of filing the lien renders the claim of lien unenforceable. Any lien filed shall include on the face of the lien the following statement in at least 12 point bold font: “THIS CLAIM OF LIEN EXPIRES AND IS VOID ONE HUNDRED EIGHTY (180) DAYS FROM THE DATE OF FILING OF THE CLAIM OF LIEN IF A PAYMENT ACTION IS NOT FILED IN THAT TIME PERIOD.” Failure to include the required language shall invalidate the lien and prevent it from being filed. No release or voiding of the liens shall be required. A lien shall expire sooner and be disregarded once it is determined that no notice of commencement was timely filed in response to a notice of contest pursuant to Section 85-7-423.
(2) Whenever any lien has been fully satisfied, the holder thereof shall file a cancellation of it in the record in the office of the chancery clerk.
(3) Any holder of a lien, who, after having been fully paid, fails for fifteen (15) days after demand in writing to file a cancellation as provided in subsection (1) of this section, shall be liable to any person thereby injured for the amount of the injury, which shall not be less than Five Hundred Dollars ($500.00) per day that the required cancellation is not timely filed, plus reasonable attorney’s fees and costs.
Laws, 2014, ch. 487, § 11, eff from and after passage (approved Apr. 11, 2014).
(1) An owner or an owner’s agent or attorney, or the contractor or contractor’s agent or attorney, may elect to shorten the time prescribed in which to commence a payment action to enforce any claim of lien by recording in the chancery clerk’s office a notice in substantially the form set forth in Section 85-7- 433(4), along with proof of delivery to the lien claimant.
(2) The clerk of the chancery court shall cross-reference the notice of contest of lien to the lien. The owner or the owner’s agent or attorney, or the contractor or the contractor’s agent or attorney, shall send a copy of the notice of contest of lien by registered or certified mail or statutory overnight delivery to the lien claimant at the address noted on the face of the lien within seven (7) days of filing. Service shall be deemed complete upon mailing.
(3) The lien shall be extinguished by law upon the earlier of ninety (90) days after the filing of the notice of contest of lien, or one hundred eighty (180) days from the date of lien filing if no payment action is filed in that time period. No release or voiding of the liens shall be required. This subsection shall not be construed to extend the time in which a payment action must begin.
Laws, 2014, ch. 487, § 12, eff from and after passage (approved Apr. 11, 2014).
The computation of time under this article shall be determined pursuant to Section 1-3-67.
Laws, 2014, ch. 487, § 13, eff from and after passage (approved Apr. 11, 2014).
(1) Judgments establishing the lien, and ordering the property sold for the satisfaction thereof, may be enforced by special writ of execution as set forth in Section 85-7-153.
(2) The delivery of possession by the person claiming the lien shall not affect his lien.
Laws, 2014, ch. 487, § 14, eff from and after passage (approved Apr. 11, 2014).
(1) Any person who shall falsely and knowingly file the claim of lien provided in this article without just cause shall be liable to every party injured thereby for a penalty equal to three (3) times the full amount for which the claim was filed, to be recovered in an action by any party so injured at any time within one hundred eighty (180) days from the filing of the claim of lien.
(2) Any person whose rights may be adversely affected by wrongful filing of a claim of lien, as provided by this article may, in addition to the remedies set forth in subsection (1) of this section, apply, upon seven (7) days’ notice, to the circuit, county or chancery court, to expunge or vacate the claim of lien, in accordance with Rule 81(d) (2) of the Mississippi Rules of Civil Procedure.
Laws, 2014, ch. 487, § 15, eff from and after passage (approved Apr. 11, 2014).
Where a contractor gives a payment bond providing payment protection to subcontractors and material suppliers to the full extent provided by the Mississippi Little Miller Act found at Section 31-5-51 or the private project bond provision at Section 85-7-432, the payment bond shall be in substitution for the liens provided for a subcontractor or materialman in this article. The contractor’s right to a lien is not affected by the provision of a bond.
Laws, 2014, ch. 487, § 16, eff from and after passage (approved Apr. 11, 2014); Laws, 2019, ch. 346, § 2, eff from and after July 1, 2019.
(1) Any person entering into a formal contract for the construction, alteration, or repair of any private building or other private work, before entering into such contract, may furnish to the owner, bonds with good and sufficient surety in which case the bonds shall conform to the requirements of this chapter as follows:
(a) A performance bond shall be payable to, in favor of or for the protection of such owner, for the work to be done in an amount not less than the amount of the contract, conditioned for the full and faithful performance of the contract;
(b) A payment bond shall be payable to the owner but conditioned for the prompt payment of all persons supplying labor or material used in the execution of the work under the contract, for the use of each such person, in an amount not less than the amount of the contract; and
(c) The bonds herein provided for may be made by any surety company which is authorized to do business in the State of Mississippi and listed on the United States Treasury Department’s list of acceptable sureties.
(2) Every person who has furnished labor or material used in the execution of the private work provided for in such contract, in respect of which a payment bond is furnished, and who has not been paid in full for such before the expiration of a period of ninety (90) days after the date on which the last of the labor was performed by him or her or the last of the materials was furnished by him or her and for which such claim is made, provided the same has been approved, where required, by the owner or its architect or engineers, or such approval is being withheld as a result of unreasonable acts of the contractor, shall have the right to sue on such payment bond for the amount, or the balance thereof that is due and payable, but unpaid at the time of institution of such suit and to prosecute said action to final execution and judgment. Notwithstanding anything to the contrary contained herein, if the amount claimed in such action is subject to contractual provisions or conditions, between the parties involved in such action, the action shall be abated pending the performance of such provisions and the fulfillment of such conditions.
(3) Any person having direct contractual relationship with a subcontractor, but no contractual relationship express or implied with the contractor furnishing the private work payment bond shall have a right of action upon the said payment bond upon giving written notice to said contractor within ninety (90) days from the date on which such person did or performed the last of the labor or furnished or supplied the last of the material for which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Such notice shall be given in writing by the claimant to the contractor or surety at any place where the contractor or surety maintains an office or conducts business. Such notice may be personally delivered by the claimant to the contractor or surety, or it may be mailed by certified mail, return receipt requested, postage prepaid, or emailed with a receipt of a read receipt, to the contractor or surety. No such action may be maintained by any person not having a direct contractual relationship with the contractor principal, unless the notice required by this section shall have been given.
(4) The only persons protected by such payment bond, subject to the notice provisions of this section are:
(a) Subcontractors and material suppliers of the contractor;
(b) Sub-subcontractors and material suppliers of those subcontractors named in subsection (4)(a) of this subsection; and
(c) Laborers who have performed work on the project site.
(5)
(a) When suit is instituted on a performance bond given in accordance with this chapter, it shall be commenced within one (1) year after the obligee shall have made final payment on the contract; provided, however, if the contract is abandoned by the general contractor as bond principal or is terminated by the bond obligee, suit shall be commenced within one (1) year after the earlier of the abandonment by the bond principal or termination by the bond obligee.
(b) When suit is instituted on a payment bond given in accordance with this chapter, it shall be commenced within one (1) year after the day on which the last of the labor was performed or material was supplied by the person bringing the action and not later.
(c) Any suit brought on a performance or payment bond given in accordance with this chapter shall be brought in the county in which the contract or some part thereof was performed or in the county in which service of process may be obtained upon either the principal or the surety on such bond. Service of process on the surety through the Commissioner of Insurance does not satisfy the venue requirement of this section.
(6) Any person supplying labor or materials for the execution of the work shall, upon a written request to the owner/obligee, or to the contractor/principal, be furnished promptly with a true and correct copy of the contract and bonds within thirty (30) days of the request or the recipient of the request shall thereafter become liable for reasonable attorney’s fees and costs in any subsequent action under this section. The written request may be evidenced by any reliable means of delivery.
(7) Whenever any person supplying labor or material in the execution of the work brings an action on such payment bond and the trial judge finds that the defense raised to such action by the contractor or surety was not reasonable, or not in good faith, or merely for the purpose of delaying payment, then the trial judge may, in his discretion, award the claimant a reasonable amount to be determined by the trial judge as claimant’s attorney’s fees in bringing such successful action. Likewise, if the trial judge finds that such action was brought by claimant without just cause or in bad faith, the trial judge may, in his discretion, award the contractor or surety a reasonable amount to be determined by the trial judge as attorney’s fees for defending such action; provided, however, this section shall not affect the right of any person to recover attorney’s fees where provided by contract or bond.
Laws, 2019, ch. 346, § 1, eff from and after July 1, 2019.
(1) The following form is the Interim Waiver and Release Upon Payment form referred to in Section 85-7- 419: INTERIM WAIVER AND RELEASE UPON PAYMENT STATE OF MISSISSIPPI COUNTY OF THE UNDERSIGNED MECHANIC AND/OR MATERIALMAN HAS BEEN EMPLOYED BY (NAME OF CONTRACTOR) TO FURNISH (DESCRIBE MATERIALS AND/OR LABOR) FOR THE CONSTRUCTION OF IMPROVEMENTS KNOWN AS (TITLE OF THE PROJECT OR BUILDING) WHICH IS LOCATED IN THE CITY OF , COUNTY OF , AND IS OWNED BY (NAME OF OWNER) AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: (DESCRIBE THE PROPERTY UPON WHICH THE IMPROVEMENTS WERE MADE BY USING EITHER A METES AND BOUNDS DESCRIPTION, THE LAND LOT DISTRICT, BLOCK AND LOT NUMBER, OR STREET ADDRESS OF THE PROJECT.) UPON THE RECEIPT OF THE SUM OF $ , THE MECHANIC AND/OR MATERIALMAN WAIVES AND RELEASES ANY AND ALL LIENS OR CLAIMS OF LIENS IT HAS UPON THE FOREGOING DESCRIBED PROPERTY OR ANY RIGHTS AGAINST ANY LABOR AND/OR MATERIAL BOND THROUGH THE DATE OF
(DATE) AND EXCEPTING THOSE RIGHTS AND LIENS THAT THE MECHANIC AND/OR MATERIALMAN MIGHT HAVE IN ANY RETAINED AMOUNTS, ON ACCOUNT OF LABOR OR MATERIALS, OR BOTH, FURNISHED BY THE UNDERSIGNED TO OR ON ACCOUNT OF SAID CONTRACTOR FOR SAID BUILDING OR PREMISES. SIGNATURE BY: (PRINT NAME) ITS: (PRINT TITLE) SWORN TO AND SUBSCRIBED BEFORE ME, THIS THE DAY OF , 20 . NOTARY PUBLIC NOTICE: WHEN YOU EXECUTE AND SUBMIT THIS DOCUMENT, YOU SHALL BE CONCLUSIVELY DEEMED TO HAVE BEEN PAID IN FULL THE AMOUNT STATED ABOVE, EVEN IF YOU HAVE NOT ACTUALLY RECEIVED THE PAYMENT, SIXTY (60) DAYS AFTER THE DATE STATED ABOVE UNLESS YOU FILE EITHER AN AFFIDAVIT OF NONPAYMENT OR A CLAIM OF LIEN BEFORE THE EXPIRATION OF THE SIXTY-DAY PERIOD. THE FAILURE TO INCLUDE THIS NOTICE LANGUAGE ON THE FACE OF THE FORM SHALL RENDER THE FORM UNENFORCEABLE AND INVALID AS A WAIVER AND RELEASE UNDER SECTION 85-7-419, MISSISSIPPI CODE OF 1972.
(2) The following form is the Waiver and Release Upon Final Payment form referred to in Section 85-7- 419: WAIVER AND RELEASE UPON FINAL PAYMENT STATE OF MISSISSIPPI COUNTY OF THE UNDERSIGNED MECHANIC AND/OR MATERIALMAN HAS BEEN EMPLOYED BY (NAME OF CONTRACTOR) TO FURNISH (DESCRIBE MATERIALS AND/OR LABOR) FOR THE CONSTRUCTION OF IMPROVEMENTS KNOWN AS (TITLE OF THE PROJECT OR BUILDING) WHICH IS LOCATED IN THE CITY OF , COUNTY OF , AND IS OWNED BY (NAME OF OWNER) AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: (DESCRIBE THE PROPERTY UPON WHICH THE IMPROVEMENTS WERE MADE BY USING EITHER A METES AND BOUNDS DESCRIPTION, THE LAND LOT DISTRICT, BLOCK AND LOT NUMBER, OR STREET ADDRESS OF THE PROJECT.) UPON THE RECEIPT OF THE SUM OF $ , THE MECHANIC AND/OR MATERIALMAN WAIVES AND RELEASES ANY AND ALL LIENS OR CLAIMS OF LIENS IT HAS UPON THE FOREGOING DESCRIBED PROPERTY OR ANY RIGHTS AGAINST ANY LABOR AND/OR MATERIAL BOND ON ACCOUNT OF LABOR OR MATERIALS, OR BOTH, FURNISHED BY THE UNDERSIGNED TO OR ON ACCOUNT OF SAID CONTRACTOR FOR SAID PROPERTY. SIGNATURE BY: (PRINT NAME) ITS: (PRINT TITLE) SWORN TO AND SUBSCRIBED BEFORE ME, THIS THE DAY OF , 20 . NOTARY PUBLIC NOTICE: WHEN YOU EXECUTE AND SUBMIT THIS DOCUMENT, YOU SHALL BE CONCLUSIVELY DEEMED TO HAVE BEEN PAID IN FULL THE AMOUNT STATED ABOVE, EVEN IF YOU HAVE NOT ACTUALLY RECEIVED THE PAYMENT, SIXTY (60) DAYS AFTER THE DATE STATED ABOVE UNLESS YOU FILE EITHER AN AFFIDAVIT OF NONPAYMENT OR A CLAIM OF LIEN BEFORE THE EXPIRATION OF THE SIXTY-DAY PERIOD. THE FAILURE TO INCLUDE THIS NOTICE LANGUAGE ON THE FACE OF THE FORM SHALL RENDER THE FORM UNENFORCEABLE AND INVALID AS A WAIVER AND RELEASE UNDER SECTION 85-7-419, MISSISSIPPI CODE OF 1972. SIGNATURE BY: (PRINT NAME) ITS: (PRINT TITLE) SWORN TO AND SUBSCRIBED BEFORE ME, THIS THE DAY OF , 20 . NOTARY PUBLIC
(3) The following form is the Affidavit of Nonpayment referred to in Section 85-7-419: AFFIDAVIT OF NONPAYMENT STATE OF MISSISSIPPI COUNTY OF THE UNDERSIGNED MECHANIC AND/OR MATERIALMAN HAS BEEN EMPLOYED BY (NAME OF CONTRACTOR) TO FURNISH (DESCRIBE MATERIALS AND/OR LABOR) FOR THE CONSTRUCTION OF IMPROVEMENTS KNOWN AS (TITLE OF THE PROJECT OR BUILDING) WHICH IS LOCATED IN THE CITY OF , COUNTY OF , AND IS OWNED BY (NAME OF OWNER) AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: (DESCRIBE THE PROPERTY UPON WHICH THE IMPROVEMENTS WERE MADE BY USING EITHER A METES AND BOUNDS DESCRIPTION, THE LAND LOT DISTRICT, BLOCK AND LOT NUMBER, OR STREET ADDRESS OF THE PROJECT.) PURSUANT TO SECTION 85-7-419 THE UNDERSIGNED EXECUTED A LIEN WAIVER AND RELEASE WITH RESPECT TO THIS PROPERTY DATED , . THE AMOUNT SET FORTH IN THE WAIVER AND RELEASE ($ ) HAS NOT BEEN PAID, AND THE UNDERSIGNED HEREBY GIVES NOTICE OF THE NONPAYMENT. THE ABOVE FACTS ARE SWORN TRUE AND CORRECT BY THE UNDERSIGNED. SIGNATURE BY: (PRINT NAME) ITS: (PRINT TITLE) SWORN TO AND SUBSCRIBED BEFORE ME, THIS THE DAY OF , 20 . NOTARY PUBLIC WITHIN TWO (2) DAYS OF FILING THIS AFFIDAVIT OF NONPAYMENT, THE FILING PARTY SHALL SEND A COPY OF THE AFFIDAVIT BY REGISTERED OR CERTIFIED MAIL OR STATUTORY OVERNIGHT DELIVERY TO THE OWNER OF THE PROPERTY. WHENEVER THE OWNER OF THE PROPERTY IS AN ENTITY ON FILE WITH THE SECRETARY OF STATE’S OFFICE, SENDING A COPY OF THE AFFIDAVIT TO THE COMPANY’S ADDRESS OR THE REGISTERED AGENT’S ADDRESS ON FILE WITH THE SECRETARY OF STATE SHALL BE DEEMED SUFFICIENT.
(4) The following form is the Notice of Contest of Lien form referred to in Section 85-7-423: NOTICE OF CONTEST OF LIEN STATE OF MISSISSIPPI COUNTY OF TO: [NAME AND ADDRESS OF LIEN CLAIMANT] YOU ARE NOTIFIED THAT THE UNDERSIGNED CONTESTS THE CLAIM OF LIEN FILED BY YOU ON 20 , AND RECORDED IN BOOK , PAGE OF THE PUBLIC RECORDS OF COUNTY, MISSISSIPPI, AGAINST PROPERTY OWNED BY , AND THAT THE TIME WITHIN WHICH YOU MAY COMMENCE A PAYMENT ACTION TO ENFORCE YOUR LIEN IS LIMITED TO NINETY (90) DAYS FROM RECEIPT OF THIS NOTICE. THIS DAY OF , 20 . THIS ABOVE-REFERENCED LIEN WILL EXPIRE AND BE VOID IF YOU DO NOT: (1) COMMENCE A PAYMENT ACTION FOR RECOVERY OF THE AMOUNT OF THE LIEN CLAIM PURSUANT TO SECTION 85-7-405, MISSISSIPPI CODE OF 1972, WITHIN NINETY (90) DAYS FROM RECEIPT OF THIS NOTICE; AND (2) FILE A LIS PENDENS NOTICE OF THE PAYMENT ACTION WITH THE CHANCERY CLERK UPON COMMENCEMENT OF THE PAYMENT ACTION WITH A COPY TO THE LIEN CLAIMANT, OWNER AND CONTRACTOR. SIGNATURE BY: (PRINT NAME) ITS: (PRINT TITLE) SWORN TO AND SUBSCRIBED BEFORE ME, THIS THE DAY OF , 20 . NOTARY PUBLIC
(5) The following form is the Pre-Lien Notice form referred to in Section 85-7-409(3): PRE-LIEN NOTICE TO OWNER TO: [NAME AND ADDRESS OF OWNER] TAKE NOTICE THAT THE UNDERSIGNED IS A PERSON HAVING A RIGHT TO A LIEN PURSUANT TO SECTION 85-7-403, MISSISSIPPI CODE OF 1972, WHO DOES NOT HAVE A DIRECT CONTRACT WITH THE OWNER, HAS PROVIDED LABOR, SERVICES OR MATERIALS FOR THE IMPROVEMENT OF PROPERTY COMMONLY KNOWN AS (“THE PROPERTY”), FOR THE SUM OF $ FOR WHICH THE UNDERSIGNED HAS NOT BEEN PAID, AND INTENDS TO FILE A CLAIM OF SPECIAL LIEN ON THE SUBJECT PROPERTY IN TEN (10) OR MORE DAYS FROM THE DATE HEREOF. SO NOTIFIED, THIS THE DAY OF , 20 . LIEN CLAIMANT: (PRINT NAME) BY: (SIGNATURE) ITS: (PRINT TITLE)
Laws, 2014, ch. 487, § 17; Laws, 2015, ch. 348, § 1, eff from and after July 1, 2015.
This article shall be known and may be cited as the “Commercial Real Estate Broker Lien Act.”
Laws, 2014, ch. 522, § 1; reenacted without change, Laws, 2017, ch. 348, § 1, eff from and after July 1, 2017.
As used in this article, the following terms have the following meanings:
(a) “Broker” means a real estate broker licensed pursuant to Section 73-35-3(1).
(b) “Broker services” means services for which a license issued by the Mississippi Real Estate Commission is required under Section 73-35-1 et seq.
(c) “Commercial real estate” means any real property or any and every interest or estate in land, including leaseholds, timeshares and condominiums, whether corporeal or incorporeal, freehold or nonfreehold, but excluding oil, gas or mineral leases and any other mineral leasehold, mineral estate or mineral interest of any nature whatsoever, which at the time the property or interest is made the subject of an agreement for broker services:
(i) Is lawfully used primarily for sales, office, research, institutional, warehouse, manufacturing, industrial or mining purposes or for multifamily residential purposes involving five (5) or more dwelling units; or
(ii) May lawfully be used for any of the purposes listed in this paragraph (c) by a duly enacted zoning ordinance or which is the subject of an official application or petition to amend the applicable zoning ordinance to permit any of the uses listed in this paragraph (c) which is under consideration by the government agency with authority to approve the amendment; or
(iii) Is in good faith intended to be immediately used for any of the purposes listed in this paragraph (c) by the parties to any contract, lease, option or offer to make any contract, lease, or option.
(d) “Compensation” means any compensation that is due a broker for performance of broker services.
(e) “Lien claimant” means a broker claiming a lien under this article.
(f) “Owner” means the owner of record of any interest in commercial real estate.
Laws, 2014, ch. 522, § 2; Laws, 2015, ch. 327, § 1; reenacted without change, Laws, 2017, ch. 348, § 2, eff from and after July 1, 2017.
(1) A broker shall have a lien upon commercial real estate in the amount that the broker is due under a written agreement for broker services signed by the owner or signed by the owner’s duly authorized agent, if:
(a) The broker has performed under the provisions of the agreement;
(b) The written agreement for broker services clearly sets forth the broker’s duties to the owner; and
(c) The written agreement for broker services sets forth the conditions upon which the compensation shall be earned and the amount of the compensation.
(2) The lien under this section shall be available only to the broker named in the instrument signed by the owner or the owner’s duly authorized agent.
(3) A broker’s lien is not valid or enforceable against a grantee or purchaser of an interest in the commercial real estate conveyed by the person owing the compensation if the grantee or purchaser is taking the property without existing tenants or leases covered by a written agreement for broker services if the deed or instrument transferring the interest is recorded before the broker’s notice of lien is recorded.
Laws, 2014, ch. 522, § 3; reenacted without change, Laws, 2017, ch. 348, § 3, eff from and after July 1, 2017.
A lien authorized by this article attaches to the commercial real estate only when the lien claimant files a timely notice of the lien in the office of the chancery clerk in the county in which the commercial real estate is located. A notice of lien is timely if it is filed after the claimant’s performance under the written agreement for broker services and before the conveyance or transfer of the commercial real estate that is the subject of the lien, except in cases where payments of compensation are due in installments or upon renewal. When payment of compensation to a broker is due in installments or upon renewal under the written agreement for broker services, a portion of which is due or may become due after the conveyance or transfer of the commercial real estate, a single claim for a lien filed before transfer or conveyance of the commercial real estate claiming all compensation due in installments or upon renewal shall be valid and enforceable for a period of one (1) year from the date of filing as it pertains to payments due after the transfer or conveyance; however, as payments or partial payments of compensation are received, the broker shall provide partial releases for those payments, thereby reducing the amount due the broker under the broker’s lien. The notice of single claim for a lien may be renewed for a period of one (1) year by the filing of a renewal notice meeting the requirements of this article before the expiration of the expiring notice, and may be likewise renewed from year to year so long as installments of compensation or renewal compensation are due. Notwithstanding any notice of single claim for a lien filed, when payment of compensation to a broker is due in installments or contingent upon renewals under the written agreement for broker services, a portion of which is or would be due after the conveyance or transfer of the commercial real estate, any notice of lien for those payments due or becoming due after the transfer or conveyance may be recorded after the transfer or conveyance of the commercial real estate and within ninety (90) days of the date on which the payment is due; in that case the lien shall be effective as a lien against the transferee’s interest in the commercial real estate as of the date filed and, in the case of a lease or transfer of a nonfreehold interest, the lien shall be effective as a lien against the owner’s interest in the commercial real estate as of the date filed.
Laws, 2014, ch. 522, § 4; reenacted without change, Laws, 2017, ch. 348, § 4, eff from and after July 1, 2017.
(1) A lien notice under this article shall be signed by the lien claimant and shall contain an attestation by the lien claimant that the information contained in the notice is true and accurate to the best of the lien claimant’s knowledge and belief.
(2) The lien notice shall include all of the following information:
(a) The name of the lien claimant;
(b) The name of the owner;
(c) A description of the commercial real estate upon which the lien is being claimed;
(d) The amount for which the lien is claimed and whether the amount is due in installments; and
(e) The claimant’s grounds for the lien, including a reference to the written agreement for broker services that is the basis for the lien. It is not necessary that the written agreement for broker services be attached to the notice.
(3) The chancery clerk shall index properly filed liens in the “Notice of Construction Liens” record maintained in his office as provided under Section 85-7-133.
Laws, 2014, ch. 522, § 5; reenacted without change, Laws, 2017, ch. 348, § 5, eff from and after July 1, 2017.
Any lien claimant who files a lien on commercial real estate under the provisions of this article shall mail a copy of the notice of the lien to the owner(s) of the commercial real estate by certified mail, return receipt requested, or shall serve a copy of the notice of the lien in accordance with any of the provisions for service of process set forth in the Mississippi Rules of Civil Procedure, as amended from time to time. The lien claimant shall file proof of service with the chancery clerk. The lien is void if the lien claimant does not file and serve the lien as provided in this section.
Laws, 2014, ch. 522, § 6; reenacted without change, Laws, 2017, ch. 348, § 6, eff from and after July 1, 2017.
A lien claimant may bring suit to enforce a lien that attaches under the provisions of this article in any court of competent jurisdiction in the county where the commercial real estate is located. The lien claimant shall begin proceedings within one (1) year after filing the notice of lien, and failure to begin proceedings within the one (1) year shall extinguish the lien. If a claim is based upon an option to acquire an interest in commercial real estate, the lien claimant shall begin proceedings within one (1) year of the option to purchase being exercised. A claim for the same lien extinguished under this section may not be asserted in any later proceeding. A lender shall not be made a party to any suit to enforce a lien under this article unless the lender has willfully caused the nonpayment of the compensation giving rise to the lien.
Laws, 2014, ch. 522, § 7; reenacted without change, Laws, 2017, ch. 348, § 7, eff from and after July 1, 2017.
(1) A complaint filed under the provisions of this article shall contain all of the following:
(a) A statement of the terms of the written agreement for broker services on which the lien is based or a copy of the written contract or agreement;
(b) The date when the written agreement for broker services was made;
(c) A description of the services performed;
(d) The amount due and unpaid;
(e) A description of the property that is subject to the lien; and
(f) Any other facts necessary for a full understanding of the rights of the parties.
(2) The plaintiff shall file the action against all parties that have an interest of record in the commercial real estate; provided that a lender shall not be made a party to any suit to enforce a lien under this article unless the lender has willfully caused the nonpayment of the compensation giving rise to the lien. A foreclosure action for a lien claimed under this article shall be brought under the provisions of this section.
(3) Upon filing a complaint, the plaintiff shall file with the chancery clerk of each county where the commercial real estate, or any part thereof, is situated a lis pendens notice in accordance with Section 11-47-3.
Laws, 2014, ch. 522, § 8; reenacted without change, Laws, 2017, ch. 348, § 8, eff from and after July 1, 2017.
If a notice of lien has been filed with the chancery clerk and the claim has been paid in full or in part, or if a condition occurs that would preclude the lien claimant from receiving compensation, in whole or in part, under the terms of the written agreement for broker services on which the lien is based, the lien claimant shall promptly, and in no event more than thirty (30) days after a properly served written demand of the owner, lienee, or other authorized agent, file with the chancery clerk and serve upon the owner(s) of record a written release, partial release or satisfaction of the lien. If a lien claimant fails to file a suit to enforce the lien within the time prescribed by this article or fails to file an answer in a pending suit to enforce a lien within thirty (30) days after a properly served written demand of the owner, lienee, or other authorized agent, the lien shall be extinguished. Service of the demand shall be by registered or certified mail, return receipt requested, or by personal service under the Mississippi Rules of Civil Procedure, as amended from time to time. The claimant shall promptly file proof of properly served written demand with the chancery clerk. The provisions of this section shall not extend to any other deadline provided by law for the filing of any pleadings or for the foreclosure of any lien governed by this article.
Laws, 2014, ch. 522, § 9; reenacted without change, Laws, 2017, ch. 348, § 9, eff from and after July 1, 2017.
The costs of any proceeding brought to enforce a lien filed under this article, including reasonable attorneys’ fees and prejudgment interest due to the prevailing party, shall be paid by the nonprevailing party or parties. If more than one (1) party is responsible for costs, fees and prejudgment interest, the costs, fees and prejudgment interest shall be equitably apportioned by the court among the responsible parties.
Laws, 2014, ch. 522, § 10; reenacted without change, Laws, 2017, ch. 348, § 10, eff from and after July 1, 2017.
Unless an alternative procedure is available and is acceptable to the transferee in a real estate transaction, any claim of lien on commercial real estate filed under this article may be discharged by any of the following methods:
(a) The lien claimant of record, the claimant’s lawful agent, or the claimant’s duly authorized attorney-in- fact, in the presence of the chancery clerk or a notary public, may acknowledge in writing the satisfaction of the claim of lien on the commercial real estate indebtedness and file the same with the chancery clerk, after which the chancery clerk shall enter on the record of the claim of lien on the commercial real estate the acknowledgment of satisfaction.
(b) The owner may exhibit an instrument of satisfaction signed and acknowledged by the lien claimant of record in the presence of the chancery clerk or a notary public, which instrument states that the claim of lien on the commercial real estate indebtedness has been paid or satisfied, after which the chancery clerk shall cancel the claim of lien on the commercial real estate by entry of satisfaction on the record of the claim of lien on the commercial real estate.
(c) By failure to enforce the claim of lien on the commercial real estate within the time prescribed by this article.
(d) By filing in the office of the chancery clerk the original or attested copy of a judgment or decree of a court of competent jurisdiction showing that the action by the claimant to enforce the claim of lien on the commercial real estate has been dismissed or finally determined adversely to the claimant.
(e) Whenever funds in an amount equal to one hundred twenty-five percent (125%) of the amount of the claim of lien on the commercial real estate are deposited with the chancery clerk to be applied to any payment finally determined to be due, after which the chancery clerk shall cancel the claim of lien on the commercial real estate. Thereafter, the lien of the claimant shall remain in place and be fully enforceable as to the funds deposited with the chancery clerk, but the lien upon the commercial real property shall be deemed released.
(f) Whenever a corporate surety bond, in an amount equal to one hundred twenty-five percent (125%) of the amount of the claim of lien on the commercial real estate and conditioned upon the payment of the amount finally determined to be due in satisfaction of the claim of lien on the commercial real estate is deposited with the chancery clerk, after which the chancery clerk shall cancel the claim of lien on the commercial real estate. Thereafter, the lien of the claimant shall remain in place and be fully enforceable as to the funds deposited with the chancery clerk, but the lien upon the commercial real property shall be deemed released.
(g) By failure to file a written release or satisfaction of a lien when required by this article or to timely file or take other action required by this article.
Laws, 2014, ch. 522, § 11; reenacted without change, Laws, 2017, ch. 348, § 11, eff from and after July 1, 2017.
Any broker who falsely and maliciously files or causes to be filed a notice of lien under this article that brings in question or disparages the title to property may be held liable in a civil action for damages, in which case damages shall be recoverable up to two (2) times the amount of monetary damages caused by the broker’s false and malicious acts, in addition to any other damages.
Laws, 2014, ch. 522, § 12; reenacted without change, Laws, 2017, ch. 348, § 12, eff from and after July 1, 2017.
All deeds of trust or mortgages, all purchase money mortgages and all liens for ad valorem taxes, regardless of when recorded, and all other liens afforded priority by law or recorded before the recording of the broker’s lien provided by this article shall have priority over the broker’s lien.
Laws, 2014, ch. 522, § 13; reenacted without change, Laws, 2017, ch. 348, § 13, eff from and after July 1, 2017.
Repealed by Laws of 2017, ch. 348, § 14, effective July 1, 2017.
§ 85-7-527. [Laws, 2014, ch. 522, § 14, eff from and after July 1, 2014.]
General information, not legal advice. Statutory text is reproduced from the Mississippi Code of 1972 and may not reflect the most recent amendments.