Laurel Race Course v. Regal Construction Co.
Court of Appeals of Maryland
333 A.2d 319 (1975)
Laurel Race Course, Inc. (Laurel) (defendant) hired Regal Construction Company, Inc. (Regal) (plaintiff) to rebuild its racetrack under a contract whose general conditions gave project engineer Watkins and Associates authority to reject nonconforming work, allowed Laurel to withhold partial payments for defective work, and expressly conditioned final payment of the balance due on Watkins issuing a final certificate. Watkins recommended withholding payment for deficiencies in Regal's work and never issued a final certificate, so Laurel refused to pay the full remaining balance; Regal sued for roughly $50,000, the trial court entered judgment for Regal for the entire unpaid balance, and Laurel appealed.
Whether a contract provision requiring an architect or engineer's approval before payments are due under the contract is a condition precedent to payment.