Absent Action Within 60 Days, Georgia Statutory Lien Waiver Destroys Both Lien and Contract Causes of Action

On September 18, 2019, the Georgia Court of Appeals interpreted the lien statute (in a case of apparent first impression) to require affirmative action to preserve breach of contract actions within 60 days of signing statutory lien waivers. It changes existing law by waiving not only liens but breach of contract rights simply by signing an ordinary ‘lien waiver.’ If this holding stands, contractors must change their current practices and act swiftly to protect contract claims.

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