The Supreme Court, New York County clarified how subcontract forum selection clauses requiring litigation interact with New York’s Prompt Payment Act and its mandatory arbitration provisions in construction dispute resolution.
Continue reading “Subcontractor’s Arbitration Action Stayed by Supreme Court”
Is the prompt payment act at odds with public policy? In both general litigation and construction litigation, courts generally give parties great freedom to contract. Thus, New York’s policy is to enforce arbitration agreements in construction contracts.[i] Conversely, New York courts do not usually force parties into arbitration unless their contract expressly requires it.[ii]
Continue reading “The Prompt Payment Act: Is It At Odds With Public Policy?”
Perhaps the most common construction-related dispute is the refusal of a party to make payment to its contractors or subcontractors. While litigation is the traditional avenue for resolving such disputes, methods of alternative dispute resolution such as arbitration and mediation are enjoying growing importance in the field of construction law.
General Business Law Section 756 (and the sections that follow it), commonly known as the Prompt Payment Act, establish requirements for how soon a construction contractor or subcontractor must be paid and allow expedited arbitration in the event that prompt payment is not made for qualifying projects.
Continue reading “Violation of the New York Prompt Payment Act Does Not Bar Defenses”
The Law Offices of John Caravella, P.C. offers a free initial consultation with a Long Island construction attorney to discuss your legal concerns with no obligation. To schedule an appointment, call our office today or fill out the form below.
