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Lien law in Louisiana: the Louisiana private and public works acts.(Lien Law Update)

Business Credit

| July 01, 2004 | White, Frank | COPYRIGHT 2004 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

INTRODUCTION

Lien law in Louisiana is set forth in the Private Works Act, which governs if the owner, that is the party that hires the general contractor, is a private entity. The Public Works Act applies if the party that hires the general contractor is the State of Louisiana or a subdivision thereof.

DISTINCTIVE FEATURES OF LAW IN STATE

1. The Private Works Act

A lien creates two kinds of rights: claims against the owner and the contractor, LSA-R.S. 9:4802 A, and a privilege in the property securing the claim against the owner. A claim is a direct cause of action so that the contractor and owner are directly liable to the claimant. ...

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