Wampler & Souder, LLC
Silver Spring:
240-833-2284
Frederick:
301-668-5111
Upper Marlboro:
301-736-5432

The Reemergence of Pay-When-Paid

In the recent unreported case of Young Electrical Contractors, Inc. v. Dustin Construction, Inc. the Maryland Court of Special Appeals reaffirmed the validity of a pay when paid clause. In this case a subcontractor sought payment for several change orders which were denied by the owner. The court held that the prime contractor had met all its obligations when it submitted the change order requests to the owner. The court suggested that the subcontractor's remedies were against the owner, but gave no information about how these remedies could be exercised. The court indicating it was applying Virginia law, but cited Maryland cases in the decision and harmonized Virginia and Maryland law. Missing from the decision was any indication whether a prime contractor would be required to aggressively pursue payment on behalf of a sub or whether any standard of good faith would be applied to the prime contractor's conduct. The Young case also did not indicate whether the same standard would be applied if payment was sought from a bond. 

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help You

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Frederick Office
170 West Patrick Street
Frederick, Maryland 21701

Phone: 301-668-5111
Fax: 301-668-2770
Frederick Law Office Map

Silver Spring Office
12114B Heritage Park Circle
Silver Spring, Maryland 20906

Phone: 240-833-2284
Fax: 301-942-8296
Silver Spring Law Office Map

Upper Marlboro Office
14452 Old Mill Road
Suite #301
Upper Marlboro, Maryland 20772

Phone: 301-736-5432
Upper Marlboro Law Office Map