Bell Nunnally Senior Associate Perrin B. Fourmy authored the Dallas Bar Association (DBA) Headnotes article “The Times They Are a Changing for Texas Lien Law.” The piece explores the impact of HB 2237 on Chapter 53 of the Texas Property Code, passed by the Texas Legislature this past session and subsequently signed into law by Governor Abbott. Chapter 53 provides one of the main tools contractors and suppliers can use to obtain payment on a project. Failure of contractors, suppliers or their attorneys to properly apply these provisions can be fatal to a lien claim, especially because perfection of a lien claim involves multiple steps.

HB 2237, Fourmy comments, was “touted as a ‘clean up’ bill, intended to make the process easier for parties to interpret and apply Chapter 53. However, the law includes several major changes affecting lien perfection and enforcement.” Fourmy breaks down these changes, noting that HB2237’s provisions go into effect on Jan. 1, 2022 and will apply to original contracts entered on or after that date. But, he cautions, “Original contracts entered prior to the [January 1, 2022] will operate under current law. This means your clients may still be required to perfect, enforce, and litigate lien claims under two different sets of requirements.”

To read the full article, please go to the DBA Headnotes website, click on the August 2021 issue and see page 20.

If you have any questions about how the changes to the Texas lien law may affect your business, your clients or the process of perfecting a lien claim, please contact Perrin at (214) 740-1436 or [email protected].