October 8, 2007

PRIME NOT ALLOWED TO WITHHOLD PAYMENT ON APPROVED SUBCONTACTOR APPLICATIONS

Supreme Court of New York, Appellate Division, Fourth Department

A contractor approves a subcontractor’s work, then tries to rescind its approval, alleging defective work and unearned allowance, to justify withholding payment. Without supported proof of defect, a New York court rejects the tactic.

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