lien waiver Archives

Aug 6, 2020

Georgia Governor Signs Lien Waiver Senate Bill

On August 5, 2020, Georgia Governor Brian Kemp formally signed into law Senate Bill (SB) 315[1] to restore statutory lien and bond waivers to their original intended purpose of waiving lien and bond rights only and to resolve the confusion caused by ALA Construction Services, LLC v. Controlled Access, Inc.[2], in which the Georgia Court of Appeals held that Georgia statutory lien waivers can also waive breach of contract claims.[3] SB 315 will take effect on January 1, 2021. Lien waivers signed from that point forward will only waive lien and bond rights, and not other claims, to the extent… Read more

Jun 22, 2020

Lien Waiver Senate Bill Passes Georgia House of Representatives

The Georgia House of Representatives has followed the State Senate’s lead and passed Senate Bill (SB) 315[1] to restore statutory lien and bond waivers to their original intended purpose of waiving lien and bond rights only. We informed you in previous SGR Construction Blogs of SB 315 and its goal of addressing the confusion caused by ALA Construction Services, LLC v. Controlled Access, Inc.[2], in which the Georgia Court of Appeals held that Georgia statutory lien waivers can also waive breach of contract claims.[3] Prior to the ALA Construction decision, most Georgia construction professionals understood that Georgia statutory forms only… Read more

Apr 6, 2020

Georgia Senate Passes Bill to Address Recent Lien Waiver Controversy

The Georgia State Senate recently passed a bill designed to address the scope of statutory interim and final lien waivers in light of the recent decision in ALA Construction Services, LLC v. Controlled Access, Inc.[1] In a previous SGR Construction Blog, we informed you of the Georgia Court of Appeals’ holding in ALA Construction that Georgia statutory lien waivers can also waive breach of contract claims.[2] This decision created great confusion within the construction industry, as most construction professionals previously understood the statutory forms as waiving lien and bond rights only. Senate Bill (SB) 315[3], introduced by Sen. Lindsey Tippins… Read more

Nov 5, 2019

Georgia’s Court of Appeals Holds that Lien Waivers Waive Breach of Contract Claims

A recent decision by the Georgia Court of Appeals will force most construction professionals to radically change their view of the scope and effect of statutory lien waivers in the state of Georgia. In ALA Construction Services, LLC v. Controlled Access, Inc., the Court of Appeals held that a lien claimant’s executed statutory lien waiver waived not only the claimant’s lien right but also rights the claimant may have to bring a related breach of contract action.[1] In ALA Construction, ALA Construction Services, LLC (“ALA”), contracted with Controlled Access, Inc. (“Controlled Access”), to provide equipment and other services for a project… Read more

Apr 17, 2014

Effective Immediately: Brand New Mississippi Lien Laws

In an earlier blog post, we discussed a Fifth Circuit Court of Appeals opinion, Noatex Corp. v. King Constr. of Houston, LLC, 732 F.3d 479 (5th Cir. 2013), which found Mississippi’s Stop Notice Statute unconstitutional. The ruling was particularly harsh because Mississippi did not allow subs and suppliers the right to record a lien. After the ruling, the only apparent recourse for subs and suppliers that had not been paid for work completed was to sue those with whom they had a contract for breach of contract. We questioned how the Fifth Circuit’s ruling would affect Mississippi’s lien laws. Now… Read more