In J Reed Constructors, Inc. v. Roofing Supply Group, LLC, a split judicial panel in Louisiana's Court of Appeal for the First Circuit has affirmed a lower court ruling that says materialmen must provide notice to the general contractor and owner within 75 days of each month in which product was delivered or else they will lose the right to file a privilege or lien on the material from that time period.
Suppliers will have to file separate notice of nonpayment before 75 days from the last day of the month, every month, in which material was delivered instead of before 75 days from the final day it provided material, as most believed was the intent of existing statute. Both Daniel Lund III, Esq., partner with Shields Mott Lund LLP, and the lone dissenting judge on the panel criticized the ruling as a break from the logical, rational intent of the legislation. However, the other judges' reading of existing statute was consistent with that circuit's reputation of trying to avoid rewriting the law or acting as activist judges, said Lund. In essence, the ruling can be largely chalked up to vaguely written statutory language.