This is an appeal of the judgment in a suit between a contractor and subcontractor. In the absence of contract language warranting the inference the subcontractor had an obligation to retain funds necessary to keep its account current from each joint check as issued, the joint check rule does not apply. Because no direct contractual relationship existed between the parties for the subcontractor's public work labor, the notice requirements of Texas Government Code §2253.047 apply to the subcontractor's McGregor Act claim for retainage. The trial court's judgment is reversed and rendered in part, and affirmed in part. Amarillo Court of Appeals, No. 07-11-00198-CV, 07-30-2013.
Plains Builders, Inc. v. Steel Source, Inc.
Tex. App. Dist. 7
August 13, 2013