The Pennsylvania Superior Court recently held that a general contractor was entitled to an award of attorney’s fees under the Pennsylvania Contractor and Sub-Contractor Payment Act (“CSPA”) regardless of whether the property owner who hired the general contractor had a good faith basis to withhold payment.
In Waller Corporation v. Warren Plaza, Inc., Warren Plaza hired Waller Corporation to construct a 15 unit apartment building which was partly funded by a U.S. Department of Housing and Urban Development grant. The parties prepared 8 change orders throughout the project, two of which were unsigned by Warren and were not submitted to HUD for approval. The changes related to the floors of the building and relocation of the unit water heaters. Warren ultimately refused to pay for the changes and Waller brought suit alleging a breach of contract and violations of CSPA.