James C. Simpson, Jr. won an appeal involving Noatex Corporation (“Noatex”). On October 20, 2013, the 5th U.S. Circuit Court of Appeals in New Orleans upheld U.S. Magistrate S. Allan Alexander’s 2012 ruling that the “stop notice” law was unconstitutional because it deprived a corporation of its property without due process of the law.
Auto Parts Manufacturing Mississippi (“APPM”) contracted with Noatex to construct a facility for manufacturing automotive parts in Guntown, MS. Noatex hired King Construction of Houston (“King Construction”) to provide labor and materials for the construction project. When a dispute arose between Noatex and King Construction over invoices, King Construction notified APPM that Noatex owed King Construction 0,410.15 and filed a “Laborer’s and Materialman’s lien and Stop Notice” in the Lee County Chancery Court in Tupelo, MS.
The appeal was featured in The Mississippi Journal, click here to view the full article: Appeals court upholds ruling; finds “stop notice” law unconstitutional.