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A Contract Provision Can Waive California's Prompt Pay Statute

Friday, March 19, 2010 02:05 am


Prompt Payment

Martin Bros. Constr., Inc. v. Thompson Pacific Constr., Inc.,

et al

, 2009 Cal. App. Lexis 1951 (Dec. 4, 2009)

Beware that exceptions to prompt payment statutes make room for disputes over payment amounts -- as well as contract language that nullifies the statute itself.

Subcontractor Martin Brothers Construction, Inc.(Martin) sued general contractor Thompson Pacific Construction, Inc. and its surety and bonding companies, American Casualty Company and Western Surety Company (collectively, Thompson), seeking penalties, interest and attorney's fees for alleged late progress and retention payments on a project to construct two schools in Elk Grove, California. A trial court awarded Thompson $150,000 in attorney's fees and ruled tha [...]

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