Seth M. Pasakarnis, partner in the Construction & Public Contracts Group, recently commented to Massachusetts Lawyers Weekly on the recent Superior Court decision in J.C. Cannistraro, LLC v. Columbia Construction Co. (“Columbia”).
Most owners, contractors, and subcontractors participating in private construction projects in Massachusetts are aware of recent legal developments concerning the Massachusetts Prompt Payment Act. Recently, Superior Court Judge Keren E. Goldberg issued a decision holding that a party that violates the Prompt Payment Act cannot pursue a claim for recoupment (or other defenses) unless it pays the “deemed approved” amounts prior to, or contemporaneously with, asserting those defenses. In this case, Columbia paid the deemed approved amounts (as ordered by the Arbitrator), but because it raised substantive defenses prior to paying, Judge Goldberg determined that the defenses were forfeited. The case raises important considerations for participants in private construction projects subject to the Prompt Payment Act.
Read the full article on Massachusetts Lawyers Weekly’s website (subscription required).