Solar Applications Engineering, Inc. v. T.A. Operating Corporation
Supreme Court of Texas
327 S.W.3d 104 (2010)
Under its construction contract with TA (defendant), Solar (plaintiff) was to submit a final application for payment accompanied by a lien-release affidavit after completing a punch list; a dispute arose over required punch-list items, TA and subcontractors filed liens, TA terminated the contract, and Solar submitted its final payment application without the lien-release affidavit, prompting TA to refuse payment on the theory that the affidavit was a condition precedent Solar had failed to satisfy. The trial court awarded Solar damages, but the appellate court reversed, finding the affidavit requirement was a condition precedent.
Whether a court determining if a contractual term is a condition precedent must ascertain the parties' intent by examining the entire contract.