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A contractor that signed a "pay when paid" contract with a subcontractor cannot rely on the insolvency of its client to defend its nonpayment of the subcontractor, an Appellate Division, 2nd Department panel has held. The subcontract that contained the pay-when-paid provision was subject under a choice-of-law provision to Florida law. Such provisions are void under New York law, but have been upheld by state courts when applying the law of other jurisdictions.
December 06, 2005 at 12:00 AM
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The original version of this story was published on Law.Com
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