United States Fourth Circuit

In plaintiff-subcontractor's breach of contract suit against a general contractor for refusing to pay $885,507 to the plaintiff for substantial work performed, judgment of the district court in favor of defendant is affirmed as, under Virginia law, the contract unambiguously reflects both parties' understanding that plaintiff would only be paid for its work after defendant was paid by the owner. Therefore, the pay-when-paid clause contained in the parties' subcontract is enforceable and prevents plaintiff from demanding payment from defendant unless and until defendant is first paid by the owner.

Appellate Information

• Argued 01/26/2010
• Decided 02/19/2010
• Published 02/19/2010

Judges

• Before GREGORY and DUNCAN, Circuit Judges, and CATHERINE C. BLAKE, United States District Judge for the District of Maryland, sitting by designation.

Court

• United States Fourth Circuit

Counsel

• For Appellees:
  
• ARGUED:James T. Lang, Pender & Coward, PC, Virginia Beach, Virginia, for Appellant. Jeffrey Mitchell Hummel, Seyfarth & Shaw, LLP, Washington, DC, for Appellee. ON BRIEF:Jack Rephan, Pender & Coward, PC, Virginia Beach, Virginia, for Appellant. Daniel P. Wierzba, Seyfarth & Shaw, LLP, Washington, DC, for Appellee.