Oklahoma Stop Notice - Remedy Identification Packet

OKLAHOMA “STOP NOTICE” — REMEDY IDENTIFICATION PACKET

DO NOT SERVE THIS AS A STOP NOTICE. The live path is preserved, but it
must not be used to demand that a private owner, construction lender, public
agency, contractor, or surety freeze money.

1. Controlling legal status

The current Oklahoma statutes still print 61 O.S. § 16, which describes a
public-work stop notice and withholding. The Oklahoma Supreme Court, however,
affirmed the judgment holding that section unconstitutional in Guy H. James
Construction Co. v. State ex rel. Oklahoma Department of Transportation,
1982 OK 150, ¶¶ 8-10, 655 P.2d 553, 556.

The Court found that § 16 lacked required notice and hearing safeguards, did
not specify the claim's contents or require verification, referred to
unspecified “statutory guarantees,” and supplied no release procedure. A
claimant must not rely on the section's continued appearance in the code as
authority for compelled withholding.

Counsel conclusion on current effect of § 16: [________________________]

Agency or court instruction, if any: [________________________________]

2. Matter control

3. Select a lawful route

Selected route: [________________________________]

Why claimant qualifies: [________________________________]

4. Private-project lien route

Do not complete this section for public real property without counsel's
separate determination that the selected lien statute applies.

Pre-lien notice

For a claimant covered by 42 O.S. § 142.6, subsection (B)(1) places the notice
before the lien statement and no later than seventy-five days after the last
covered supply. It identifies the original contractor and an owner as
recipients. The section contains definitions, exceptions, required contents,
permitted delivery methods, an affidavit requirement, and consequences that
must be applied from the current text rather than summarized from this packet.

A § 142.6 pre-lien notice preserves a route to lien rights when required. It
is not a private-project stop notice and does not itself compel an owner or
construction lender to segregate or withhold money.

Lien statement and post-filing notice

Prepare the lien statement under the current section applicable to the
claimant's tier. Under § 143.1(A), within five business days after filing the
lien statement provided for in §§ 142 and 143, the owner notice is mailed by
certified mail, return receipt requested; the claimant supplies specified
address information to the county clerk, and the clerk mails the notice.

Discharge after a lien claim is filed

Section 147.1 permits a property owner or other interested party against whom
a mechanics' or materialman's lien claim has been filed to seek discharge
by depositing 125% of the lien amount in cash or a qualifying corporate surety
bond with the county clerk. It supplies notice, objection, hearing, substituted-
security, and foreclosure rules. This is not a claimant's pre-filing “bonding-
around option,” and a claimant does not dictate a private bond in this packet.

Filed lien and any § 147.1 deposit or bond: [___________________________]

5. Public-work payment-bond route

Section 61-1 requires a bond before award of a covered contract exceeding
$100,000 for construction or repair on public real property. The bond secures
completion and payment of the contractor's covered subcontractor and supplier
indebtedness. Confirm the contract amount, property status, bond, surety, and
any project-specific exception from current law and the procurement file.

Section 61-2(A) permits a qualifying unpaid person to file a claim or bring an
action on the bond and contains the governing time limits. Section 61-2(B)(1)
requires a person with a direct contract with a subcontractor, but none with
the bonded contractor, to give written notice to the contractor and surety
within ninety days after the person's last covered labor or supply; the notice
must substantially state the amount and hiring party and use the specified
registered- or certified-mail service.

Do not send the old template to the public agency as a compelled-withholding
notice. Prepare the actual bond notice, claim, or action selected by counsel.

6. Contract claim or voluntary request

A claimant may preserve a factual payment record or make a noncompulsory
request if counsel approves. The communication must not say that receipt:

• freezes, segregates, or creates a trust over owner, lender, agency, or
  contractor funds;

• creates a lien, bond claim, priority, injunction, damages claim, fee right,
  or direct-payment duty;

• extends any pre-lien, lien, bond-notice, claim, or lawsuit deadline; or

• obligates a recipient to sign, acknowledge, cure, bond around, indemnify, or
  release anything.

Factual communication workspace — not for use until counsel approves

To: [________________________________]

Project and contract chain: [________________________________]

Labor, material, equipment, or service supplied: [_____________________]

Invoice and payment history: [________________________________]

Amount asserted, with attached calculation: $[________________________]

Requested voluntary response: [________________________________]

Express reservation and no-false-effect language: [____________________]

7. Evidence and deadline register

8. Final counsel verification

☐ The old private-owner, lender, and public-agency withholding demands were
not used.

☐ Current § 16 and official Guy H. James opinion were read together; the
codified text was not mistaken for an enforceable remedy.

☐ Public/private project status, claimant tier, contract chain, and amount
were independently verified.

☐ Correct private-lien, public-bond, contract, or other route selected.

☐ Every notice, filing, claim, action, service method, recipient, and deadline
was derived from current authority and current project facts.

☐ No invented 125% pre-filing bond, five-day release, trust account, lender
duty, injunction, default, cure, fee shifting, indemnity, liability cap,
exclusive forum, entire agreement, assignment, or electronic-signature term
was included.

Reviewing Oklahoma attorney: [________________________________]

Review date: [__/__/____]

Approved operative document and authority: [___________________________]

OFFICIAL SOURCES

• Guy H. James Construction Co. v. State ex rel. Oklahoma Department of Transportation, 1982 OK 150, 655 P.2d 553 (OSCN)
• 61 O.S. § 16 — codified stop-notice text held unconstitutional
• 61 O.S. § 1 — public-work bond
• 61 O.S. § 2 — bond claim, action, and lower-tier notice
• 42 O.S. § 142.6 — pre-lien notice
• 42 O.S. § 143.1 — post-filing owner notice
• 42 O.S. § 147.1 — post-filing discharge by cash or bond