John Adams Courthouse, home of the Supreme Judicial Court of Massachusetts, and the Massachusetts Appeals Court. Photo: Swampyank via Wikipedia Massachusetts Supreme Judicial Court Rules on Prompt Pay Act for First Time
Parties in a construction contract must approve or reject payments within strict time limits and provide procedures for the process, a majority on the court found.
June 23, 2024 at 09:13 PM
3 minute read
Contracts
What You Need to Know
- The Massachusetts Supreme Judicial Court issued an opinion of first impression on the state's Prompt Pay Act Monday
- The court's majority said a payor's failure to accept or reject an invoice under the act's strict time requirements
- The partial concurring and partial dissenting opinion warned of the majority creating a remedy the legislation does not support
A divided Massachusetts Supreme Judicial Court issued an opinion of first impression on the state's Prompt Pay Act Monday, with the majority determining that the legislation can prevent a general contractor from bringing an affirmative defense against a subcontractor's breach of contact claim if the general contactor failed to pay the subcontractor's invoices.
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