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Joint Check Arrangement Not Enforceable Payment; Suppliers

Monday, April 03, 2006 06:08 pm

 
Joint Check Arrangement Not Enforceable Payment; Suppliers

A Mississippi court has ruled that what appeared to be a joint check agreement could not be enforced against a project owner by a supplier to the contractor.

Hazlehurst Lumber Co., Inc. planned to make equipment improvements to its lumber mill. Hazlehurst awarded a contract for the electrical work to Magnum Industrial and Controls, Inc. Magnum wanted to purchase materials for the project from Service Electric Supply Co., Inc. (SESCO), but the supplier refused to sell to Magnum on open account due to an outstanding balance from an unrelated project.

At the request of Magnum, Hazle [...]

 
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