Burns Pacific Construction v. Modern Alloys
Plaintiff and appellant subcontractor Burns Pacific Construction, Inc. appeals from a judgment confirming an arbitration award. Defendant and respondent contractor Modern Alloys, Inc. withheld payment from Burns and pursued arbitration of a billing dispute. The arbitrator found Modern was not entitled to payment from Burns. On appeal, Burns contends statutory prompt payment penalties should have been assessed against Modern under Public Contract Code section 10262.5, because Moderns reasons for withholding payment did not constitute a good faith dispute over the amount due on a progress payment. Court hold there is substantial evidence to support the arbitrators finding that Moderns claims were a good faith dispute over the amount due on a progress payment, and therefore Court affirm.
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