OWNER'S LIABILITY FOR FAILURE TO RESERVE FUNDS
Applied in 3 court decisions — leading case Hadnot v. Wenco Distributors (1997)
Most recently applied in Morrell Masonry Supply, Inc. v. Lupe's Shenandoah Reserve, LLC (March 2012)
Acts 1983, 68th Leg., p. 3546, ch. 576, Sec. 1, eff
Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
(a) If the owner fails or refuses to comply with this subchapter, the claimants complying with Subchapter C or this subchapter have a lien, at least to the extent of the amount that should have been reserved from the original contract under which they are claiming, against the improvements and all of its properties and against the lot or lots of land necessarily connected.
(b) The claimants share the lien proportionately in accordance with the preference provided by Section 53.104.
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.