Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts
Posted: May 20, 2016

“Pay-When-Paid” Provision in Subcontract Unenforceable as Contrary to Public Policy

On May 17, 2016, the First Department issued a decision in Nevco Contracting Inc. v. R.P. Brennan General Contractors & Builders, Inc., 2016 NY Slip Op. 03832, holding that a “pay-when-paid” provision in [a] subcontract is not an effective condition precedent to defendant’s duty to perform, since such provisions are void and unenforceable as contrary to public policy.”

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