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This case arose out of a project in Columbia, Missouri on which Jeff City Industry, Inc. (JCI) was the general contractor and G&G Mechanical Constructors, Inc. (G&G) was a subcontractor.
The draft subcontract contained an interest provision which provided that overdue payments “shall bear interest at the annual rate of 18% or the highest rate allowed by law, if lower. Retainage shall not be held out of payment.” JCI struck through this provision, wrote “5% Retiange [sic]” in the margin, initialed it, and sent it to G&G. G&G also initialed the revision.
When JCI failed to pay G&G for its work, G&G sued JCI for breach of contract, unjust enrichment, and violation of Missouri’s Prompt Pay Act. A jury returned a verdict against JCI, and the trial court entered a judgment against it which included prejudgment interest at the rate of 9% pursuant to Missouri Revised Statute § 408.020.