Prompt Payment

News & Analysis as of

Court Throws Wet Blanket On Prime Contractor's Attorneys' Fees Request In Prompt Payment Case

In James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., et al. (No. C072169, filed 8/27/15), the California Court of Appeal for the Third Appellate District upheld the trial court's discretion to not award...more

Construction Law Advisory - August 2015

Pennsylvania’s Contractor and Subcontractor Payment Act (“CASPA”) is a powerful tool for contractors and subcontractors to ensure that they receive prompt payment for their work and may entitle them to expansive remedies,...more

Pennsylvania’s Contractor and Subcontractor Payment Act Does Not Apply to Public Projects

Pennsylvania’s Contractor and Subcontractor Payment Act (“CASPA”) is a powerful tool for contractors and subcontractors to ensure that they receive prompt payment for their work and may entitle them to expansive remedies,...more

Don’t Guess On How to Assert A Mechanic’s Lien

Many contractors and subcontractors have learned this the hard way: failure to comply with the filing and notice requirements for a mechanic’s lien can result in losing the lien and an effective way of ensuring payment for a...more

Graber v. State Farm is a Texas Prompt Payment Outlier

For more than a decade, courts applying Texas law — including the Fifth Circuit, two federal district courts and several Texas courts of appeal — have uniformly held that an insurer’s full and timely payment of an appraisal...more

Fifth Circuit Predicts When the Texas Prompt Pay Act Begins to Accrue

In a recent decision, the Fifth Circuit considered when the 18 percent damages interest under the Texas Prompt Payment of Claims Act (Prompt Pay Act) accrues and whether an insurer can waive a policy’s one-year cost reporting...more

Supreme Court of Pennsylvania Holds Contractor and Subcontractor Payment Act (“CASPA”) Inapplicable to Public Works Projects

Clipper Pipe & Service, Inc. v. The Ohio Cas. Ins. Co., 2015 Pa. LEXIS 1275 (PA June 15, 2015) - The Supreme Court of Pennsylvania held that CASPA, 73 P.S. §§501-516, “does not apply to a construction project where...more

Arizona State Legislature Expands Prompt Payment to Design Professionals on Public Works Projects

Arizona law has long protected the rights of contractors, subcontractors and suppliers to prompt payment. However, all such protections have not extended to design professionals. For example, in 2013, the Arizona Court of...more

Government Contracts Quarterly Update - May 2015

The Government Contracts Quarterly Update is published by BakerHostetler’s Government Contracts Practice team to inform our clients and friends of the latest developments in federal government contracting. Topics in the...more

Recent Federal Court Ruling: No ERISA Preemption of Texas Prompt Pay Law Regarding Payment Deadlines; Texas Legislature May Act on...

What's new. A Texas federal district court has ruled that ERISA does not preempt or prohibit application of the Texas Prompt Pay ("TPP") law to Third Party Administrators ("TPAs") of self-funded benefit plans. Judge Lynn...more

West Virginia Amends Wage Payment Act to Ease Burdens on Employers

The West Virginia Legislature has brought West Virginia more in line with its neighbors in regulating how employers must pay former employees upon the employee’s departure. Historically, West Virginia has imposed different...more

Recent Federal Court Ruling on Application of Texas Prompt Pay Laws to Self-Funded, Medicaid and Out-of-State Plans and Their...

What's new? A Dallas federal district court recently ruled that the Texas Prompt Pay Law does not apply to employer-funded health plans, Medicaid plans, or out of state patients that use Texas providers, or to a Third Party...more

School District Gets Expensive Lesson on Prompt Payment Law. But Did the Court Get it Right?

My kids don’t like riding in my car. I urge them to look outside the window (I don’t have DVD), suggest that they roll down their windows to get some fresh air (rather than have me turn on the A/C) and persist on...more

Subcontractor Working on a Federal Project in Tennessee Protected by Tennessee Prompt Pay Act

The operation and applicability of prompt pay acts in various states is something that contractors ignore to their detriment. A recent Tennessee case drives home the importance of understanding the applicability of any prompt...more

Summary of California’s Prompt Payment Laws

The California legislature has enacted a comprehensive series of prompt payment statutes that are designed to ensure the prompt payment of progress payments and retention payments to downstream contractors by imposing harsh...more

Prompt Payment Act Interest Decreases

Since 2008, when the PPA and CDA interest rates were as high as 5 5/8 % per annum, the interest rates under the PPA and CDA have trended downward to a low of 1 3/8 % per annum for the first half of 2013. ...more

Big Changes To Missouri Public Prompt Pay Law!

The Missouri legislature has passed a bill, S.B.529, to modify the Public Prompt Pay Act, which will become law effective August 28, 2014 (unless vetoed by Governor Nixon prior to July 14, 2014). One of the law's main...more

ConstructLaw - January 2014

U.S. Supreme Court Holds Forum-Selection Clauses Are Presumptively Enforceable - Atl. Marine Constr. Co. v. United States Dist. Court 2013 U.S. LEXIS 8775 (U.S. 2013) - This action arose out of a forum-selection...more

Texas Court Predicts Accrual Date for Prompt Payment of Claims Act

In its recent decision in Cox Operating v. St. Paul Surplus Lines Ins. Co., 2014 U.S. Dist. LEXIS 3140 (S.D. Tex. Jan. 10, 2014), the United States District Court for the Southern District of Texas had occasion to consider...more

Texas Hurricane Season: Statutory Requirements for Handling Claims

For Texans, the prime hurricane season from August to September is now over. Although there were no big storms this year, claims handlers still need to be attentive to timely adjusting their first party claims. The Texas...more

Under Construction - September 2013

Welcome to the fall 2013 issue of Under Construction. In this issue, we focus on the economic loss doctrine and how the different courts in our firm’s footprint treat it similarly and differently. We hope you enjoy our review...more

California’s Prompt Payment Laws – Would You Like That With Non-Fat, Soy, Foam, No Foam . . . ?

California’s prompt payment laws are scattered throughout the state’s Business and Professions Code, Public Contracts Code and Civil Code, and their applicability varies depending on the type of project, the type of payment,...more

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