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New York's Construction Pay When Paid Provision Loophole Closed

New York State’s Prompt Payment Act provides a potential workaround for the invalid pay-when-paid provisions that appear in construction contracts. The New York State's Appellate Division's decision in Bank of America v. ASD Gem Realty narrows, if not closes, that loophole. ....

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NY Appellate Court Reaffirms Pay-When-Paid Provisions Are Void as Against Public Policy | Troutman Pepper

Bank of America, N.A. v. ASD Gem Realty LLC, 205 A.D.3d 1, 164 N.Y.S.3d 566 (2022). - ASD Gem Realty LLC and ASD Diamond, Inc. (together, ASD or Owner) contracted Sweet. ....

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