Sloan & Company v. Liberty Mutual Insurance Company
United States Court of Appeals for the Third Circuit
653 F.3d 175 (2011)
Relevant factsFree
Sloan's (plaintiff) subcontract made the owner's final payment to general contractor Shoemaker a condition precedent to Shoemaker paying Sloan, but also allowed Sloan to pursue Shoemaker and its surety, Liberty Mutual (defendant), if payment wasn't received within six months of when it was due; when owner IOC refused to pay Shoemaker, Shoemaker refused to pay Sloan, and Sloan sued Liberty Mutual, the district court granted Sloan partial summary judgment.
IssueFree
Whether a pay-when-paid clause in a subcontract may be created if the condition precedent in a pay-if-paid clause is eliminated after a stated period of time.