Subcontractors and suppliers deliver labor and materials to jobsites on credit with an understanding that payment will be forthcoming. Lien laws exist to secure that credit risk should the subcontractor or supplier not be paid timely for the value they provided to the project. Owners and contractors understandably want to ensure that payments get downstream […]
risk mitigation Archive
Court Holds that Subcontract Conditional Payment Clause is Not a Defense to a Surety on a Payment Bond Claim
In the recently decided case of Crosno Construction, Inc. v. Travelers Casualty & Surety Company of America, No. D075561, 2020 WL 1899278 (Cal. Ct. App. Apr. 17, 2020) the California Court of Appeals issued a victory for subcontractors’ and suppliers’ payment rights by holding that a subcontract “conditional payment” clause may not be relied on […]