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No Stop Notice, No Chance To Recover From Owner Who's Already Paid Up

Friday, March 19, 2010 01:59 am


Payment - Subcontractor

Summerall Electric Co., Inc. et al v. Church of God at


, 2010 Miss. App. Lexis 11 (Jan. 5, 2010)

A Mississippi owner, who had paid the general contractor in full, was not obliged to pay the project's subcontractors after the contractor left them wanting.

The Church of God at Southaven (the Church) in Mississippi hired National Church Services, Inc. (NCS) to construct a sanctuary building for $1.1 million. NCS in turnhired Summerall Electric Company, Inc.; Don South Plumbing, Inc.; and South and Son Construction Company,Inc. (collectively, the subcontractors). Before project completion, NCS's payments to the subs ceased. The Church issued final payment for the work to NCS, and the subs did not send stop payment notices to the Church before it did so. As a result, a trial judge ruled the sub [...]

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