Peacock Construction Co. v. Modern Air Conditioning, Inc.
Florida Supreme Court
353 So.2d 840 (1977)
As general contractor on a condominium project, Peacock Construction (defendant) signed identical subcontracts with Modern Air Conditioning and Overly Manufacturing (plaintiffs) requiring final payment within 30 days of work completion, architect acceptance, and "full payment therefor by the Owner"; when the subcontractors completed their work and requested final payment, Peacock refused, arguing owner payment was a condition precedent it had never received. The trial courts granted summary judgment for the subcontractors, an intermediate appellate court affirmed, interpreting the clause as merely fixing a reasonable payment timeframe rather than a true condition precedent, and Peacock sought further review.
Whether a subcontract clause conditioning final payment to a subcontractor on the general contractor's own receipt of full payment from the property owner creates a condition precedent excusing the general contractor's payment obligation if the owner never pays.