News & Analysis as of

Failure To Pay Construction Industry

Warner Norcross + Judd

Liberating Property: Bonding Off Construction Liens in Michigan

An owner hired a contractor to make improvements on real property, but the contractor failed to pay its subcontractors or suppliers. What happens next? Under Michigan’s Construction Lien Act, contractors, subcontractors,...more

Robinson+Cole Construction Law Zone

Robinson+Cole’s Amicus Brief Adopted and Cited by Massachusetts’s High Court

Earlier this year, the Associated Subcontractors of Massachusetts hired Robinson+Cole attorney Joseph Barra to submit an amicus brief to the Massachusetts Supreme Judicial Court for consideration in the appeal pending before...more

Bricker Graydon LLP

Mechanics' liens and public improvements: A primer

Bricker Graydon LLP on

Mechanics' liens on public construction projects are a fact of life. Although they may seem familiar, it does not pay to regard them too casually. Mechanics' liens are statutory creatures, and anyone dealing with them needs...more

Miles Mediation & Arbitration

Georgia Changes Lien Law

On August 5, 2020, Georgia Governor Brian Kemp signed a new law, Senate Bill 315, changing Georgia’s lien law statute, O.C.G.A. 44-14-366. The new statute, effective January 1, 2021, makes clear that lien waivers only waive...more

Seyfarth Shaw LLP

A Day Late and Potentially Many Dollars Short: NY Appellate Court OK’s Liquidated Damages in Late Payment Case

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Seyfarth Synopsis: A New York appellate court recently held that New York employers may be liable for liquidated damages for failure to pay employees on a timely basis, even where the employees have been paid in full....more

Buckingham, Doolittle & Burroughs, LLC

Dear YouDig? Pigs get roasted

Dear YouDig?, We just finished a project where and thought we paid all of our subcontractors.  About a month after completion, our accounting department however found that our drywall sub submitted invoices a while back...more

Troutman Pepper

A Contractor That Intentionally And Materially Breaches Its Contract Is Not Precluded From Recovery Under Quantum Meruit;...

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G4S Tech. LLC v. Mass. Tech. Park Corp., 2018 Mass. Lexis 357 (June 13, 2018) - A state development agency (the “Agency”), received state and federal funding to build a 1,200-mile fiber optic network. It contracted with...more

Troutman Pepper

Under California’s Prompt Payment Statute, a Direct Contractor May Not Withhold Retention From a Subcontractor Simply Because a...

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United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., 2018 Cal. Lexis 3510 (May 14, 2018) - In 2010, Universal City (“Universal”) hired Coast Iron & Steel Co. (“Coast Iron”) to build a new ride at the Universal...more

Gray Reed

Establishing Personal Liability Without a Guaranty

Gray Reed on

When non-payment occurs, suppliers and service providers often first seek relief by suing for breach of contract. Unfortunately, many companies are undercapitalized or otherwise “judgment proof.” A personal guaranty might...more

Troutman Pepper

Subcontract Provision Requiring Subcontractor To Pass Through Its Claims Does Not Prevent The Subcontractor From Suing To Recover...

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Pinnacle Crushing & Constr. LLC v. Hartford Fire Ins. Co., 2018 U.S. Dist. LEXIS 67965 (W.D. Wa. Apr. 23, 2018) - The Army Corps of Engineers (the “Corps”), as owner, and Cherokee General Corporation (“CGC”), as prime...more

Troutman Pepper

Sovereign Immunity Bars Contractor’s Claims For Unjust Enrichment And Promissory Estoppel Against City Government On Semi-Public...

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Harakas Constr., Inc. v. Metro Gov’t of Nashville, 2018 Tenn. App. LEXIS 45 (Tenn. App. January 29, 2018) - BK Partners LLC (“BK”) sought to build a condominium complex in Davidson County. This required an upgrade to the...more

Troutman Pepper

Government Contract: How Can a Subcontractor Get Paid?

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G4S Technology LLC v. US, 779 F.3d 1337 (Fed. Cir. 2015) – A subcontractor worked on construction of wireless broadband networks for rural communities that was funded in part by a loan to the prime contractor from a US...more

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