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Conditions Don't Bar Recovery For Pre-termination Completed Work

Tuesday, June 14, 2011 07:09 am


Payment - Contract Termination

U.S., et al v. Alacran Contracting, LLC, et al, 2011 U.S. Dist. Lexis 32110 (N.D. Ohio March 25, 2011)

A contractor sought summary judgment on its claim that it didn't have to pay a subcontractor who failed to comply with several payment conditions. But those conditions failed to support the contractor's creative arguments.

A payment dispute regarding plumbing work arose during a U.S. government remodeling project at the Bachelor Officer's Quarters at Fort McCoy, Wisconsin. General contractor Alacran Contracting, LLC (Alacran) hired subcontractor Weatherproofing Technologies, Inc. (Weatherproofing), and Weatherproofing in turn executed two subcontracts with Alliance Mechanical, Inc. (Alliance) for $150,000's worth of plumbing work (the total cost increased by $250,000 after several change orders). Weatherproofing never paid Alliance under the two subcontracts, and the subcontracts were eventually terminated. In court, Weatherproofing advanced four arguments as to why it was not obligated to pay Alliance and was entitled to summary judgment. None worked.

Payment conditions apply only during contract pendency

First, Weatherproofing claimed Alliance failed to co [...]

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