Mississippi's Fifth Circuit Court of Appeals' decision last month that rendered its Stop Notice statute unconstitutional could very well foster challenges in other states such as Arizona, California, Nevada, New Mexico and Washington that have similar Stop Notice statutes.
"I'm sure some GC will take a shot at it," said James Reed, Esq., partner at Baird Williams & Greer LLP. However, Reed is confident that any challenge would be extremely unlikely to gain traction as most of these states have preliminary notice language (e.g., 20 days in California and Arizona, 31 days in Nevada). This language distinguishes them from the Mississippi statute, which the court ruling noted as having a "profound" lack of procedural safeguards, in an important way. "The basis for the decision doesn't apply in the southwest," Reed said. "I don't see dominos tipping."