Cuevas Machine Company filed two liens totaling $1.23 million against Calgon Carbon Corporation in Hancock County, Mississippi, after subcontractor O'Neal Constructors stopped paying Cuevas for fabrication and machining work.
U.S. District Judge Louis Guirola Jr. dismissed Cuevas's complaint with prejudice, ruling that the liens failed to comply with Miss. Code Ann. § 85-7-405(1)(b) because they did not explicitly state the last date labor or materials were supplied.
Circuit Judge Cory Wilson, writing for a unanimous panel, noted that while Cuevas attached dated invoices, it was unclear whether those dates reflected when services were provided, when the invoices were generated, or other accounting practices.
Wilson explained that neither the plain text of the lien statute nor Mississippi precedent answers whether Cuevas could satisfy the requirements for an enforceable construction lien with the invoices attached to its lien documents.
The panel emphasized that Mississippi caselaw interpreting lien laws evinces more contradiction than resolution, with older cases suggesting liberal construction and an alternative line of cases requiring strict compliance with statutory requirements.
Wilson noted that little precedent exists interpreting the statute's current language following Mississippi's 2014 lien law overhaul, and cautioned that the court would not "lightly dilute the exacting requirements that the legislature has expressly added."
All three factors for certification favored referral to the state high court, as the question was narrow yet important, had significant economic impact, and would allow the federal court to conclude the case without risking inconsistency with future state determinations.