When a prime contractor made payments to a subcontractor through deposits into a general deposit bank account, the prime had no recourse against the bank when the bank seized the account as security against a business loan to the sub. Even if the account included funds owed to lower-tier subcontractors and suppliers on the prime contractor’s projects, the prime had no contract with the bank, was not a fiduciary of the lower-tier parties, and had not obtained an assignment of their rights against the bank.
The Construction Claims Advisor summary of this case is available to ConstructionPro Network members and includes:
- The citation for the case (case name, case number, and date filed)
- An overview of the case
- Background information about the case
- A summary of the ruling
- A summary of the court’s conclusion and the resulting outcome
- Editor's commentary
- A link to the complete PDF copy of the original opinion
