Federal Court Enjoins Owner From Withholding Payment of Disputed Invoices Based on Contract Provision Requiring Parties to “Diligently Proceed With Performance” Notwithstanding Any Dispute

Coalview Centralia, LLC v. Transalta Centralia Mining LLC, 2018 U.S. Dist. LEXIS 185914 (W.D. Wash. Oct. 30, 2018)

This case involves a dispute over Coalview Centralia, LLC’s (“Coalview”) performance of environmental cleanup work at a coal mine and associated power plant near Centralia, Washington.  TransAlta Central Mining (“TCM”) hired Coalview to remediate and restore three waste coal slurry impoundment ponds.  In general terms, Coalview agreed to dredge the ponds, extract the coal fines for use in the power plant, and deliver the remaining slurry for final disposal.  Coalview was to submit monthly invoices – and to be paid – based on the weight of slurry removed or the weight of usable coal recovered, whichever is greater.

The Master Services Agreement (“MSA”) between TCM and Coalview provided, in pertinent part, that: (1) TCM had 30 days to “dispute” an invoice and explain the reasons for its dispute; (2) the parties had a one-year period to correct invoice “inaccuracies”; and (3) “[n]otwithstanding any disputes … contractor and owner shall diligently proceed with performance of this Agreement.” Continue reading “Federal Court Enjoins Owner From Withholding Payment of Disputed Invoices Based on Contract Provision Requiring Parties to “Diligently Proceed With Performance” Notwithstanding Any Dispute”

Arizona Court of Appeals Rules Prompt Payment Act Does Not Apply To Design Professionals When Performing Normal Architectural and Engineering Services

RSP Architects, Ltd. v. Five Star Dev. Resort Communities, LLC
306 P.3d 93 (Ariz. Ct. App. 2013)

This action arose from a payment dispute on a construction project where an architectural firm, RSP Architects, Ltd. (“RSP”), contracted with a developer, Five Star Development Resort Communities, LLC (“Five Star”), to provide architectural services for a development known as the Palmeraie (the “Project”). Pursuant to the architectural services contract (the “Architectural Agreement”), RSP was tasked with several different duties, including “construction administration,” “overall coordination,” and “conceptual design” related to the Project. For its services, RSP was to receive approximately $3,000,000. Prior to completion, however, RSP ceased work on the Project and sued Five Star, alleging, among other claims, a violation of Arizona’s Prompt Payment Act, A.R.S. § 32-1129 et seq. (the “PPA”).

Continue reading “Arizona Court of Appeals Rules Prompt Payment Act Does Not Apply To Design Professionals When Performing Normal Architectural and Engineering Services”

Indiana Court Holds Subcontractor Subject to Prime Contract Claim Notice Requirement via Flow-Down Provision – Its Claims Were Presented Too Late

Weigand Construction Co., Inc. v. Stephens Fabrication, Inc.
2010 Ind. App. LEXIS 1109 (Ind. Ct. App. June 25, 2010)

Ball State University (BSU) contracted with Weigand Construction Co. (“Weigand) to act as the general contractor for its Music Instruction Building project. Weigand subcontracted the structural steel work to Stephens Fabrication, Inc. (“Stephens”). Stephens was to manufacture the steel, perform certain engineering and prepare shop drawings. Stephens contracted with sub-subcontractors, Argo and Wilson, to perform the engineering and prepare the shop drawings. Continue reading “Indiana Court Holds Subcontractor Subject to Prime Contract Claim Notice Requirement via Flow-Down Provision – Its Claims Were Presented Too Late”