News & Analysis as of

Failure To Pay Subcontractors

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

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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

Rivkin Radler LLP

NY Law Now Holds GCs Liable for Subcontractors’ Labor Law and Wage Obligations

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On September 9, 2021, Governor Hochul signed into law a new wage protection statute which added a new section to the New York Labor Law. Section 198(e) holds construction contractors liable for all claims under Labor Law...more

Pullman & Comley, LLC

Bonding Off Mechanic's Liens:  Not Just for Property Owners

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Property owners are often confronted with a contractor threatening a mechanic’s lien on their property. These liens may stem from a dispute between them and their contractor, or even between a subcontractor and a general...more

Troutman Pepper

Michigan Federal Court Permits Subcontractor’s Quasi-Contractual Claims to Proceed Despite Existence of Express Contract Covering...

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P.A.L. Environmental Safety Corp. v. North American Dismantling Corp. Et Al., No. 19-11630, 2020 BL 198779 (E.D. Mich. May 28, 2020) - A Michigan federal court partially granted Consumers Energy Company’s (“CEC”) motion to...more

Troutman Pepper

Recent Decisions Recognize Limits on Lien Amounts Properly Includable Under Michigan and Connecticut Lien Statutes

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Lost profits, not part of unpaid contract balance, may be recoverable as consequential damages in contract claim, but cannot be included in lien. TSP Services Inc. v. National-Standard, LLC, 2019 BL 340267 (Mich. Ct. App....more

Maynard Nexsen

Right to Enforce Arbitration Is Waived Upon Default

Maynard Nexsen on

Generally, the right to enforce arbitration may be waived. While there is no established rule as to what constitutes waiver, it typically requires a showing of prejudice through undue burden resulting from the delay in...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

The Lessor of Two Evils: Iowa Supreme Court Holds That Mechanic’s Liens Will Not Attach to the Property of a Lessor for Work...

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Winger Contr. Co. v. Cargill, Inc., No. 17-1169, 2019 BL 132092 (Iowa Apr. 12, 2019). On April 12, 2019, the Iowa Supreme Court affirmed a lower court ruling which held that, inter alia, the Iowa mechanic’s lien statute...more

Troutman Pepper

Colorado Court of Appeals Finds Contractor Satisfied Conditions Precedent Under Performance Bond

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Whiting-Turner Contracting Co. v Guar. Co. of N. Am. USA, 2019 BL 97923 (Colo. App. Mar. 21, 2019). This construction dispute involved rights and obligations under a performance bond supplied for an office building...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

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

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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