Court Throws Wet Blanket On Prime Contractor's Attorneys' Fees Request In Prompt Payment Case

September 03, 2015 — Steven M. Cvitanovic & Abigail E. Lighthart – Haight Brown & Bonesteel LLP
Prompt payment penalty cases do not come around very often, but when they do, there is bound to be fireworks. In James L. Harris Painting & Decorating, Inc. v. West Bay Builders, Inc., et al. (No. C072169, filed 8/27/15), the California Court of Appeal for the Third Appellate District upheld the trial court's discretion to not award prevailing party attorneys' fees to the party who won a prompt payment dispute. California Business and Professions Code §7108.5 and Public Contract Code §§7107 and 10262 are the mechanisms for obtaining prompt payment relief in California. As shown by the outcome, it is possible to win and lose at the same time. West Bay Builders, Inc. (“West Bay”) was the prime contractor on a school construction project for Stockton Unified School District. West Bay entered into a subcontract agreement with James L. Harris Painting & Decorating, Inc. (“Harris”) on the project. During construction there were disagreements between West Bay and Harris regarding the contractual scope of work, and Harris performed work it believed was outside the contract, believing it would be paid for the additional work. After West Bay refused to pay for the additional work, Harris left the project, and West Bay hired another subcontractor to complete the work. Reprinted courtesy of Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and Abigail E. Lighthart, Haight Brown & Bonesteel LLP Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Ms. Lighthart may be contacted at alighthart@hbblaw.com Read the full story...