House Bill 1075

AN ACT TO AMEND SECTIONS 85-7-187, 85-7-189 AND 85-7-195, MISSISSIPPI CODE OF 1972, TO INCLUDE SUBCONTRACTORS ON COMMERCIAL PROJECTS IN LIEN LAWS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 85-7-187, Mississippi Code of 1972, is amended as follows:

85-7-187. If no suit shall be brought by the obligee within six months from the completion and final settlement of the contract, then any person supplying therein labor or materials shall have a right of action on said bond for his use and benefit against said contractors or subcontractors on commercial projects and the sureties thereon and to prosecute same to final judgment and execution, subject to the rights and demands of the owner.

SECTION 2. Section 85-7-189, Mississippi Code of 1972, is amended as follows:

85-7-189. When suit is instituted by any such person on a bond, it shall not be commenced until after the complete performance of said contract, and final settlement thereof and shall be commenced within one (1) year after the performance and final settlement of said contract and not later; provided that if the contractor or subcontractor on a commercial project quits or abandons the contract before its completion suit may be instituted by any such person including the owner on said bond and shall be commenced within one (1) year after such abandonment and not later. But said period for the limitation of the institution of said action shall not begin to run until (a) the obligee shall have made said final settlement or determined said abandonment and published notice thereof in some newspaper in said county, or if there be none then in some newspaper having a general circulation therein; (b) after the written acceptance of the project by the owner; or (c) after the actual occupancy or use by the owner; whichever occurs first.

SECTION 3. Section 85-7-195, Mississippi Code of 1972, is amended as follows:

85-7-195. To all suits instituted under the provisions of this chapter the parties interested shall be summoned as provided by Section 85-7-145; provided further that where any contractors' bond or subcontractors' bond on commercial projects has been executed and delivered under any of the foregoing sections of this chapter and the contractor, subcontractor or principal obligor in said bond, or any one or more of said principal obligors therein shall be a nonresident or shall remove from the state, or so conceal himself therein that service of process cannot be directly made upon him personally, then in such case personal service of summons for said absent or absconding principal obligor may be made upon the Insurance Commissioner of the State of Mississippi in like manner, with the same procedure thereabout, and with the same effect as process may be served on said commissioner in cases of a defendant foreign insurance company; and the delivery of any such bond within this state shall be deemed equivalent to the appointment, by the principal obligors and by the surety or sureties therein, of the state Insurance Commissioner or his successors in office to be the true and lawful attorney of said obligors upon whom may be served all lawful process in any action or proceeding arising under said bond when for any one of the reasons aforesaid the said principal obligors or any one of them cannot be otherwise served with personal summons in this state, and the delivery of any bond in this chapter mentioned shall be a signification of the agreement and power of attorney of the said principal obligor or obligors and of said sureties that any such process against said principal or principals which is so served shall be of the same legal force and validity as if served upon the said principal or principals personally.

SECTION 4. This act shall take effect and be in force from and after July 1, 2004.