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New York Court Enforces Clause Under Florida Law Payment-final; Subcontractors

Saturday, April 09, 2005 02:40 pm

 
New York Court Enforces Clause Under Florida Law Payment-final; Subcontractors

A New York court has ruled that a "pay-if-paid" clause, while not enforceable under New York law, was enforceable under Florida law which governed the subcontract.

Telergy Metro, LLC awarded a contract to MasTec North America for construction of telecommunications improvements. MasTec subcontracted a portion of the work to Hugh O'Kane Electric Co., LLC. A choice-of-law clause stated that the subcontract would be governed by the law of Florida. The subcontract also said MasTec's obligation to pay O'Kane was "expressly contingent upon and subject to"MasTec's receipt of p [...]

 
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