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Legal Blog:
Sep
01
2001
Pay Me – Now
We have previously discussed pay if paid clauses (see newsletters of November 1995, March 1996, and May 1996). These clauses remain a fertile source of litigation. Most subs will live with some semblance of the clause if it relates to timing (i.e. I will wait for the general to get paid before I stick out my hand). Conversely, if the subs are told that they will never get paid because the owner will not pay the general, the subs are not likely to swallow this concept easily.
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01
2001
Silence Not Golden
It may seem like a good idea to wait in the wings to pounce but the courts take a dim view of these tactics. The case of West Shore Constructors Ltd. v. Sandspit Harbour Society, a 2000 decision of the B.C. Court of Appeal, is an example of the court’s attitude in this regard.
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