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New York Supreme Court Granted Summary Judgment for Subcontractor Where Contractor Attempted to Utilize Contractual "Pay-When-Paid" Provision to Unreasonably Withhold Payment from Subcontractor

A.E. Rosen Elec. Co. v. Plank, LLC, No. 07862-7, 2019 BL 113951 (Sup. Ct. Mar. 01, 2019)

Author: Michelle Beth Rosenberg

5/16/2019

Read the full post at Constructlaw

New York Supreme Court Granted Summary Judgment for Subcontractor Where Contractor Attempted to Utilize Contractual "Pay-When-Paid" Provision to Unreasonably Withhold Payment from Subcontractor

On March 1, 2019, the Supreme Court of New York, Albany County, granted a subcontractor’s motion for summary judgment on a payment dispute involving a “pay-when-paid” contract provision.

Defendant Plank, LLC (Contractor) entered into a construction contract with Dutch Village, LLC (Owner) to act as the general contractor for the construction of four apartment buildings (Project). Thereafter, Contractor entered into a subcontract with Plaintiff A.E. Rosen Electrical, Inc. (Subcontractor) for electrical work on the Project. After nine months of work on the Project, a payment dispute arose between the Owner and Contractor. At that time, Contractor directed the Subcontractor to cease work on the Project.

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