Patrick McNamara | Porter Law Group A California Court of Appeals opinion published earlier this month brings a change to payment bond claims brought by unpaid subcontractors and suppliers. The decision (Crosno Construction, Inc. v. Travelers Casualty and Surety Company of America) places limitations on a payment bond surety’s ability to rely on subcontract “pay-when-paid”… Continue reading Enforceability Of Subcontract “Pay-When-Paid” Provisions – An Important Update
Tag: Pay-When-Paid Clause
Pay-When-Paid: What is a Reasonable Amount of Time to Withhold Payments to a Subcontractor?
Brent R. Laman | Smith Currie & Hancock In an early Rolling Stones classic, Mick Jagger sang, “Ti-i-i-ime is on my side.” The refrain to that hit melody “yes it is” appears to hold true if you are a subcontractor in New York looking to get paid for completed work even while the owner and… Continue reading Pay-When-Paid: What is a Reasonable Amount of Time to Withhold Payments to a Subcontractor?
General Contractors: The Payment Provisions in Your Subcontracts May Have Just Been Determined to be Unenforceable
Scott Halberstadt | TALG While it has been more than twenty years since the California Supreme Court determined, in Wm. R. Clarke Corp. v. Safeco Ins. Co., that “pay-if-paid” provisions in subcontracts were unenforceable, following a recent decision from the Court of Appeal, Fourth Appellate District, general contractors, or any other contractors that contract directly with owners,… Continue reading General Contractors: The Payment Provisions in Your Subcontracts May Have Just Been Determined to be Unenforceable
California Appeals Court Provides Guidance on ‘Pay-When-Paid’ Provisions in Construction Subcontracts
Ted Gropman and Cindy Lee | Constructlaw On April 17, the California Court of Appeal decided Crosno Construction, Inc. v. Travelers Casualty & Surety Company of America,1 effectively narrowing the scope of enforceable “pay-when-paid” provisions in construction subcontracts to the extent the subcontractor seeks recovery against a general contractor’s payment bond surety. Although the Crosno case involved a public… Continue reading California Appeals Court Provides Guidance on ‘Pay-When-Paid’ Provisions in Construction Subcontracts
Recent Court Decision Affects Enforceability of Pay-When-Paid Clauses
Mary A. Salamone | Procopio Cory Hargreaves & Savitch Construction contracts are exchanged so routinely that it is not uncommon for contractors to give the documents a quick glance or not even read them altogether before signing. Even when a contractor examines a contract thoroughly, legal terminology with profound impact may be overlooked. Since it… Continue reading Recent Court Decision Affects Enforceability of Pay-When-Paid Clauses