Video

  • 33 minutes

Defeating or Avoiding Pay If Paid

 

A pay if paid clause must be clear and unambiguous to be enforceable.

There are various legal theories that can be used to defeat or defend a pay if paid clause. Defenses to a pay if paid clause includes: ambiguity, public policy, settlement, implied duty of good faith and fair dealing, payment bonds, prevention doctrine, and unjust enrichment. Because it’s considered an avoidance clause, a subcontractor can defeat a pay if paid clause in most states by showing that there two or more reasonable and logical interpretations of the pay if paid language. This does not require a showing that the subcontractor’s interpretation is the most reasonable or most logical. This video reviews the different defenses to a pay if paid clause and enforceability of conditional payment provisions in the U.S.

Runtime: 33 minutes

Agenda

Faculty

Scott D. Cahalan

Scott D. Cahalan

Smith, Gambrell & Russell, LLP

  • Partner in the construction law and international arbitration sections of Smith, Gambrell and Russell, LLP, an AmLaw 200 firm
  • Part-time instructor of Construction and Development Law at the Georgia Institute of Technology
  • General counsel to the Georgia Utility Contractor’s Association
  • Worked as an engineer for an ENR® top 50 general contractor
  • Drafted form contracts for the Associated Owners and Developers, a national association
  • Recognized by Chambers USA, The Best Lawyers in America, and Georgia Super Lawyers
  • Frequent author and lecturer on construction law
  • Member of the State Bar of Georgia, Northern District of Georgia, and 11th Circuit Court of Appeals
  • J.D., cum laude, from University of Georgia; B.S. in construction engineering from Iowa State University
  • Can be contacted at [email protected], [email protected], and (404) 815-3711

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