Jeffrey M. Stacko

Dinsmore represented an electrical and instrumentation services subcontractor in a mechanics’ lien and Contractor and Subcontractor Payment Act (CASPA) matter.  Following the provision of services for the construction of a natural gas pipeline, the subcontractor was not paid in accordance with the parties’ contract in an amount in excess of $1,000,000.  Dinsmore noticed and filed mechanics’ liens, along with a complaint alleging CASPA violations.  The contractor defended the claim by invoking a “pay if paid” provision in the contract.  Following protracted litigation, the Dinsmore team argued that the “pay if paid” provision was not enforceable because of the “prevention doctrine,” and recovered approximately 99% of the amount contractually due.