By: Richard G. Kotarba, Esquire rgk@muslaw.com
In Imperial Excavating & Paving v. Rizzetto Construction Management, the Pennsylvania Superior Court decided on October 23, 2007, that excessive withholding by a general contractor warranted the assessment of interest, penalties and attorneys’ fees. The general withheld more than $262,000, even though the school district had withheld only $120,000 from the general and the general had to expend only $81,000 to correct the problems noted by the school district. The Superior Court found no reasonable relationship between the amount of the payment withheld from the subcontractor and the value of the general’s good faith claim against the subcontractor.
For more information on this case or the Prompt Payment Act, contact Richard G. Kotarba at rgk@muslaw.com or call 412-456-2812.
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