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California Supreme Court Clarifies “Good Faith Dispute” Under California’s Prompt Payment Law

 

Recent court case addresses if a direct contractor can withhold payment from a subcontractor based on good faith dispute exception.

The issue in this case was whether or not the good faith withholding exception applies to any argument between the parties or only arguments that are directly related to the particular payment that would otherwise be due. This white paper reviews the court’s decision that an argument must be clearly connected with or related to the specific payment that would otherwise be due.

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California Supreme Court Clarifies “Good Faith Dispute” Under California’s Prompt Payment Law

Agenda

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California Supreme Court Clarifies “Good Faith Dispute” Under California’s Prompt Payment Law

Faculty

Michael J. Baker, Esq.

Snell & Wilmer L.L.P.

Michael J. Baker, Esq., is a partner in the Orange County office of Snell & Wilmer, and member of the commercial litigation and construction practice groups. With more than 20 years of experience dedicated to the area of construction law, Mr. Baker focuses his practice on the representation of design professionals, engineers, general contractors and public and private owners. His experience includes providing representation for business and contractual matters as well as disputes before arbitration panels, mediators and trial courts. Mr. Baker's transactional experience in both construction and design-related matters includes drafting contracts related to project delivery methods as well as drafting building program management agreements and construction management agreements for building programs ranging from $200 million to over $1 billion on behalf of contractors, design teams and owners. His experience as a trial lawyer is shown by having brought 20 cases to trial for decision or verdict, including venues in 11 different counties in the State of California and trials in multiple federal circuit court districts in California and the Ninth Circuit Court of Appeals. Additionally, Mr. Baker has arbitrated numerous cases in private arbitration and has also served as chairman and member of dispute resolution boards on public works projects. Mr. Baker completed his bachelor's degree in business economics from DePaul University in Chicago, Illinois, and received his J.D. degree from the Pepperdine University School of Law. He is a member of the State Bar of California and is a board member of the Construction Management Association of America (CMAA), Southern California Chapter. Mr. Baker is admitted to practice before the U.S. Supreme Court, the Supreme Court of California, the U.S. District Courts of California and the Ninth Circuit Court of Appeals.

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California Supreme Court Clarifies “Good Faith Dispute” Under California’s Prompt Payment Law

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