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Prompt Payment Act Doesn't Hang Contractor For Withholding Payment For Defective Work

Friday, April 23, 2010 03:26 am


Prompt Payment -- Conditions Precedent Glass Artistry Architectural Glass & Metal, LLC v. Western Surety Company, 2010 U.S. Dist. Lexis 7477 (Jan. 27, 2010)

An unsigned subcontract raised enough questions about the terms of a contractor--subcontractor agreement that the parties? payment dispute must go to trial.

Magnum, Inc. (Magnum) was the general contractor on a project to construct the West Whiteland Township Municipal Building in West Whiteland Township, Pennsylvania. Magnum hired Glass Artistry Architectural Glass & Metal, LLC (Glass Artistry) to provide glass and glazing for the building?s doors and windows. Glass Artistry contended that although it completed the subcontract work, Magnum did not issue full payment. Glass Artistry sought recovery of the balance owed, about $180,000, under the surety bond Magnum secured from Western Surety Company (Western). Western claimed genuine issues of material fact existed and therefore Glass Artistry was not entitled to summary judgment. A court agreed.

The parties disputed not the contract price but how it was established. Glass Artistry claimed an oral agreement with Magnum set the [...]

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