California Court of Appeal

In a case involving the interpretation of prompt payment statutes intended to guarantee timely payments to contractors and subcontractors in construction projects, the trial court's judgment in favor of defendant is affirmed where where: 1) the decision by the owner to stop withholding future retentions and pay full progress payments to the contractor was not equivalent to a payment by the owner of past retentions under Public Contract Code section 7107, which states that when a project owner pays a direct contractor the amount it had previously withheld as retentions, the direct contractor must pay its subcontractors their share of the retention within seven days or face penalties; and therefore 2) the subcontractor is not entitled to late payment penalties under section 7107.

Appellate Information

• Published 2016/03/23

Judges

• ROTHSCHILD

Court

• California Court of Appeal

Counsel