This afternoon, I was reading a post on Bowie & Jenson’s Construction Law Forum blog about problems that may arise when using the same subcontract in more than one state. The case discussed in the blog post regarding the differences in interpretation of a pay when paid clause in Maryland and Virginia. While we don’t practice in either of those states, we very frequently encounter clients who are working across borders.
When it comes to Louisiana construction companies, they are frequently working in Mississippi.
Out of curiosity, I performed a little research on the treatment of pay when paid clauses in Mississippi to compare it with Louisiana’s treatment of the same. Immediately I went to my two favorite resources for Mississippi Construction Law, and figured our readers could benefit from these two resources and there’s no reason to keep them a secret. So here goes:
Construction Law Toolbox Blog
The Construction Law Toolbox blog is published by Mississippi law firm Robinson, Biggs, Ingram, Solop & Farris, PLLC. The blog provides consistent quality posts about construction law issues that affect those performing construction work in Mississippi. Here are some example posts:
Oh, and the result of my pay when paid clause research, thanks to help from Mr. Wise is this:
In Louisiana, “pay when paid” requires payment within a reasonable time, regardless of whether payment was ever received from the property owner. “Pay if paid” clauses, on the other hand, makes payment from the owner an absolute condition precent to payment further down the contracting chain.
In Mississippi, it doesn’t seem to matter how it’s written: pay if paid, pay when paid, etc. The result is the same: payment is due within a reasonable time, regardless of whether payment was ever received from the property owner.