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Court Says Contractor Wrongfully Withheld Retainage

Thursday, January 04, 2007 11:21 am

Court Says Contractor Wrongfully Withheld Retainage

A Pennsylvania appeals court held that a contractor cannot blame a subcontractor for taking the initiative to design a heating system when the subcontractor was not hired to do design work.

Ruthrauff, Inc., the subcontractor, sued contractor Ravin, Inc. to recover $55,900 allegedly withheld as retainage, along with interest, attorney fees and expenses. Ravin counterclaimed asserting breach of contract related to the infrared heating system Ruthrauff installed above the bleachers at Castle Shannon Ice Castle ice skating rink, and sought $34,500, the cost of replacing the system. Ravin alleged that the heating system did not heat the bleachers to its satisfaction.

The Pennsylvania trial judge awarded Ruthrauff the amount it sought, but refused to award interest or attorney fees. The court also granted Ravin [...]

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