EDITOR'S NOTES | Volume 6 - Number 48
publication date: Dec 8, 2008
In Shakespeare’s Romeo and Juliet, Juliet asked, “What’s in a name?” Though a rose by any other name might smell as sweet to Ms. Capulet, if you’re doing business, it pays to stick with one name (or at least know the correct name of that business). During a restaurant project, the contractor incorporated his business, changed the business name, and then filed for bankruptcy before launching a new business under a different name. The project owner got lost in the shuffle and could not collect on its $500,000 arbitration award for disputes related to the project.
A name change isn’t the only way to try to circumvent legal obligations. Borrowing a contractor’s license is another shady tactic. However, without a proper license, you may not be able to file a mechanic’s lien or pursue a claim against a contractor or owner for nonpayment, as one out-of-state subcontractor learned.
And finally, if you withhold payments from a contractor or subcontractor, it pays to have a good reason. Otherwise, you may end up on the losing end of a bad faith lawsuit. Do you have plans to attend Ecobuild America’s fall convention in Washington, D.C., this week? If so, be sure to register using Construction Claims Advisor’s discount code, WPLF8EKC. You’ll receive free admission to the exhibit hall and keynote addresses. Visit www.aecEcobuildFall.com for more information.
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