Houston Harbaugh, P.C.
Houston Harbaugh, P.C.

Three Gateway Center
401 Liberty Ave.
22nd Floor
Pittsburgh, PA 15222-1005

Phone: 412-281-5060
Fax: 412-281-4499
Map & Directions

Blog

Posts tagged "Payment Act"

Major Construction Decision Holds that CASPA Does not Apply to Government Entities

Owen-J-Mcgrann-profile.jpgThe Commonwealth Court came out with a hallmark case in Pennsylvania construction law on March 6, 2015, definitively holding that the Prompt Payment Act applies to government entity owners and CASPA does not.  East Coast Paving & Sealcoating, Inc. v. North Allegheny School District, No. 751 C.D. 2014, ___ A.3d ___ (Pa. Cmwlth. 2015).  (This opinion is attached below for easy reference and review.)  The Court reached this conclusion through analyzing not only the plain language of the text (the Prompt Payment Act explicitly calls out payments made by a "government agency," whereas CASPA calls out payments made by an "owner" or "party"), but also by comparing the threshold requirements to receive attorneys fees and penalties under both Acts. The requirements to impose penalties and attorneys fees under CASPA are relatively lower, requiring a showing that payments were "wrongfully withheld" and that the contractor has "substantially prevailed in litigation." The Prompt Payment Act requires an outright showing that the government agency acted in bad faith.

Pennsylvania Superior Court finds that Oral Contract Supports Claim under Contractor Subcontractor Payment Act and that "curbs" Constitute "structures" and "improvements to Real Property"

Jeff web photo.jpg