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Contractor and Public Entity were having a tiff over a public transit project. Contractor wasn't paying its subcontractors. One of these subcontractors sued Contractor for work performed but unpaid. There was no dispute that Subcontractor had done its work and was entitled to payment
Subcontractor argued that, according to the Florida Supreme Court, subcontractors get paid even if the owner doesn't pay the general contractor. Contractor pointed to the contract between Contractor and Subcontractor, which said that that payment to Subcontractor would be made from funds received from Public Entity.
The court ruled in favor of Contractor. The general rule that subcontractors must get paid when they've performed their work can be altered by contract, which in this case, it was.
The moral of the story: Dust off those contracts and see if it has a pay when paid clause. Shane, Inc. v. Aetna Casualty & Surety Co., 723 So.2d 302 (Fla. 3DCA 1998).. |