Zacherl, Inc. v. Flaherty Mechanical Contractors, LLC, 131 A.3d 1030, 2016 Pa. Commw. LEXIS 22 (Jan. 6, 2016)
The West Allegheny School Board (the “School Board”) voted to approve the School District’s (the “District’s”) plan to renovate its high school building (the “Project”). The District contracted with Flaherty Mechanical Contractors, LLC (“Flaherty”) to act as the prime contractor. Flaherty submitted the names of its subcontractors for the School Board’s review. When the School Board raised no objections to Flaherty’s submission, Flaherty subcontracted with F. Zacherl, Inc. (“Zacherl”) to perform sheet metal work at the Project.
During the Project, the District made timely payments to Flaherty, but Flaherty failed to make timely payments to its subcontractors, including Zacherl. The District terminated Flaherty’s contract in part as a result of Flaherty’s payment issues. Flaherty, in turn, terminated Zacherl’s contract. Continue reading “Pennsylvania Commonwealth Court Holds Enforceable School District’s Oral Promise to Pay Subcontractor for Returning to Job after Prime Contractor’s Termination”