News & Analysis as of

Prompt Payment Breach of Contract

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

Hinckley Allen

Massachusetts Supreme Judicial Court Releases Much-Anticipated Prompt Pay Act Decision

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On June 17, 2024, the Massachusetts Supreme Judicial Court (“SJC”) issued its decision in Business Interiors Floor Covering Business Trust v. Graycor Construction Company, Inc. (“Graycor”).  The SJC’s decision addresses an...more

Nutter McClennen & Fish LLP

Massachusetts Supreme Judicial Court Interprets Prompt Pay Act for the First Time

On June 17, 2024, the Supreme Judicial Court (SJC) issued its first decision interpreting the Massachusetts Prompt Pay Act (the “PPA”). In Business Interiors Floor Covering Business Trust v. Graycor Construction Co., Inc.,[1]...more

Robinson+Cole Construction Law Zone

Massachusetts Appeals Court Strictly Construes Prompt Payment Act

On June 7, 2022, the Massachusetts Appeals Court issued an opinion of first impression regarding the Massachusetts Prompt Payment Act, G.L. c. 149 § 29E (the “Act”).  In Tocci Building Corp. v. IRIV Partners, LLC, Appeals Ct....more

Woods Rogers

Virginia’s New Construction Payment Terms (Part 1)

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(Part one of a two-part article series) Confused about “pay-when-paid”, “pay-if-paid” clauses and the requirements of Virginia’s Prompt Payment Act on Virginia construction contracts? A new law intending to change the...more

Zelle  LLP

Texas Insurers' Paths to Post-Appraisal Summary Judgment

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Until recently, property insurers who paid a binding appraisal award in Texas were almost certain to end a matter by doing so, with respect to both breach-of-contract claims and all extracontractual claims. But changes...more

Snell & Wilmer

Prompt Pay Act Lessons from The Arizona Court of Appeals

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Last November, Arizona’s Court of Appeals issued a memorandum decision analyzing Arizona’s Prompt Pay Act. Though the decision was not published and is not binding authority, it does guide the construction industry and...more

Snell & Wilmer

Nevada Supreme Court Finds That Pay-If-Paid Provisions in Construction Contracts Are Not Per Se Unenforceable Under Prompt Payment...

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In October, the Nevada Supreme Court revisited the enforceability of pay-if-paid clauses in construction contracts. Despite being enacted nearly two decades ago and being amended several times since, the Nevada Prompt Payment...more

Verrill

Finding Teeth in Massachusetts' Prompt Payment Act

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In Tocci v. IRIV Partners, LLC, Boston Harbor Industrial Development LLC and Hudson Insurance Co. (November 19, 2020, Sup. Ct. 19-405), the Massachusetts Superior Court granted summary judgment on a contractor’s breach of...more

Robinson+Cole Construction Law Zone

An Unfounded Lien: What’s an Owner to Do? And Can it Recover its Attorneys’ Fees?

A subcontractor has liened the property although the owner has paid in full for its work. The general contractor has disappeared. What should an owner do next? And will its attorneys’ fees be recoverable?...more

Buckingham, Doolittle & Burroughs, LLC

Dear YouDig? Preacher Gonna Preach - Don't Get Caught ...

Dear YouDig? We are owed mid-six figures for excavation work we finished six months ago. The general contractor is playing dodgeball and claims it hasn’t been paid. We want to make a claim to get our dough. Problem, it...more

Troutman Pepper

Void Means Void – Municipal Contract That Did Not Conform To Statute Is Void And No Claim For Breach Or Quasi-Contract Or Unjust...

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Aquatic Renovations Sys. v. Vill. of Walbridge, 2018 Ohio App. Lexis 1581 (April 13, 2018) On May 2, 2012, Aquatic Renovations Systems, Inc. (“Aquatic”) entered into a contract with the Village of Walbridge (“the Village”)...more

Zelle  LLP

The Graber Opinion is Confirmed as an Outlier in Matters Involving Texas Appraisals

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With the continued onslaught of hail and other weather related litigation in Texas, insurance carriers often elect to resolve claims through the appraisal process outlined in the policy. Insurance carriers historically...more

Zelle  LLP

A Reprieve from the Deluge of Hail Litigation in Texas

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In recent years, the number of Texas lawsuits arising from hail-damage claims to residential and commercial properties has reached staggering levels, leaving the courts in several Texas counties struggling to keep up with...more

McCarter & English, LLP

New FAR Changes Incentivize Prime Contractors Not to Be Deadbeats in Meeting Their Payment Obligations to Their Small Business...

One common complaint we hear from our subcontractor clients is “HOW CAN WE GET PAID????” Our experience has shown that whether through inadvertence, lack of subcontract management resources – or even as a predatory business...more

Zelle  LLP

How Appraisal Protects Against Texas Insurance Code Abuse

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Insurance practice in Texas has become somewhat rote. Typically, a petition is filed against both an insurance company (that is often not based or incorporated in Texas) and a local adjuster. In addition to a breach of...more

Troutman Pepper

Tennessee Federal District Court Holds That Contractor May Pursue Both Breach of Contract Action in Federal Court and Lien...

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Summit Contracting Grp., Inc. v. Ashland Heights, LP, 2016 U.S. Dist. LEXIS 60662 (M.D. Tenn. May 6, 2016) - Ashland Heights, LP (“Owner”) contracted with Summit Contracting Group, Inc. (“Contractor”) to construct an...more

Cozen O'Connor

Don’t Mess with the Texas Prompt Payment of Claims Act: One Court’s Appraisal Result

Cozen O'Connor on

Virtually all property insurance policies contain an appraisal clause, which outlines the appraisal procedure in broad terms. Those broad terms sometimes do not provide much guidance about the process, or about the effect...more

Troutman Pepper

Texas District Court Rejects Rail Contractor’s Delay and Prompt Payment Claims and Awards Owner More Than $3 Million

Troutman Pepper on

Balfour Beatty Rail, Inc. v. The Kansas City Southern Railway Company, 2016 U.S. Dist. LEXIS 39086 (N.D. Tex., March 25, 2016) - The contractor contracted with owner to install 65 miles of railroad track, for a price of...more

Zelle  LLP

Waiving the Right to Appraisal Just Got Easier in Texas

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Any Texas lawyer with even a passing interest in insurance law knows that if you want to see sparks fly, just utter the word “appraisal” near a couple of insurance lawyers. If you really want fireworks, make sure one...more

Haight Brown & Bonesteel LLP

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

Zelle  LLP

Graber v. State Farm is a Texas Prompt Payment Outlier

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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

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