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La. Rev. Stat. § 9:4856 (2026)

Contractors; misapplication of payments prohibited; civil penalties; payment of claims, attorney fees and costs

✓ current as of May 2026
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SUBPART H. MISAPPLICATION OF PROCEEDS; RETAINAGE

§4856. Contractors; misapplication of payments prohibited; civil penalties; payment of claims, attorney fees and costs

           A. No contractor, subcontractor, or agent of a contractor or subcontractor, who has received money on account of a contract for the construction, erection, or repair of a building, structure, or other improvement, including contracts and mortgages for interim financing, shall knowingly fail to apply the money received as necessary to settle claims to sellers of movables or laborers due for the construction or under the contract. Any seller of movables or laborer whose claims have not been settled may file an action for the amount due, including reasonable attorney fees and court costs, and for civil penalties as provided in this Section.

           B. When the amount misapplied is one thousand dollars or less, the civil penalties shall be not less than two hundred fifty dollars nor more than seven hundred fifty dollars.

           C. When the amount misapplied is greater than one thousand dollars, the civil penalties shall be not less than five hundred dollars nor more than one thousand dollars, for each one thousand dollars in misapplied funds.

           D. A contractor, subcontractor, or agent of a contractor or subcontractor who is found by the court to have knowingly failed to apply construction contract payments as required in Subsection A shall be ordered by the court to pay to plaintiff the penalties provided in Subsection B or C, as may be applicable, and the amount due to settle the claim, including reasonable attorney fees and court costs.

           Acts 1997, No. 861, §1; Redesignated from R.S. 9:4814 by Acts 2019, No. 325, §4, eff. January 1, 2020.

Notes of Decisions
Cited in 3 cases (3 in the last 5 years), 2022–2025 · leading case: Coastal Fire Prot., L.L.C. v. Custom Drywall & Painting, L.L.C. & Tsm Investments, L.L.C. (La. Ct. App. 2025).
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Coastal Fire Prot., L.L.C. v. Custom Drywall & Painting, L.L.C. & Tsm Investments, L.L.C. (La. Ct. App. 2025). · cites it 5× “R.S. 9:4856 and reasonable attorney’s fees and costs pursuant to La.”
Budget Constr. Servs. L L C v. Victory Exteriors Roofing & Sheet Metal L L C (W.D. La. 2022). · cites it 2× “Budget asserts numerous theories of recovery against Curry and the Defendant entities based on acts of fraud, conversion, misappropriation, breach of fiduciary duty, and rights subrogated under Louisiana Revised Statutes section 9:4856 Doc. 1. Defendants have filed a Rule…”
United States v. Justin J. Reeves, LLC (E.D. La. 2024). “9:2784, penalties under LA R.S. 9:4856, detrimental reliance claims, and claims for damages.”
La. Rev. Stat. § 9:4856(A): 1 case
Coastal Fire Prot., L.L.C. v. Custom Drywall & Painting, L.L.C. & Tsm Investments, L.L.C. (La. Ct. App. 2025). “R.S. 9:4856 and reasonable attorney’s fees and costs pursuant to La.”
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