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New York Appellate Division Holds That Contractor's Assertion That No Payments Were Due to Subcontractor Until a Separate Prevailing Wage Action Was Resolved Precludes Application of Contractual Limitations Period

AWI Sec. & Investigations, Inc. v. Whitestone Constr. Corp., 2018 N.Y. App. Div. LEXIS 5867 (August 23, 2018)

Author: John H. Conrad

10/18/2018

Read the full post at Constructlaw

New York Appellate Division Holds That Contractor's Assertion That No Payments Were Due to Subcontractor Until a Separate Prevailing Wage Action Was Resolved Precludes Application of Contractual Limitations Period

A subcontractor, AWI Security and Investigations, Inc. (AWI), sued a general contractor, Whitestone Construction Corp. (Whitestone), for unpaid contract payments for providing security services on four separate construction projects. A separate prevailing wage action (Wage Action) was also filed by AWI employees who worked on the projects, against both AWI and Whitestone. Whitestone notified AWI that it was invoking the subcontract indemnity provision to withhold funds from AWI pending the outcome of the Wage Action.

Whitestone moved to dismiss AWI’s suit for payment based on a contractual limitations period requiring the suit to be brought within 6 months of: the cause of action accruing; the termination or conclusion of the contract; or the last day AWI performed work at the site, which Whitestone alleged had all occurred. The court granted Whitestone’s motion to dismiss, finding that AWI had completed its work more than six months prior to filing its lawsuit and that AWI’s suit was barred by the contractual limitations period. AWI appealed.

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