The Firm defended general contractor in a claim by a subcontractor for violation of California’s prompt payment laws. The general contractor had withheld funds due to a public works prevailing wage labor compliance audit of the subcontractor’s payroll and withholding by the project owner. The issue was tried to a judge, where the Firm showed that general contractor was entitled, as a matter of law, to withhold all funds and could not be liable for breach of contract or prompt payment violations.
Counsel: Louis J. Blum