homeWelcome, sign in or click here to subscribe.login
     


 

 

Construction


Construction Industry Spotlight logo

Subscriber content preview

June 5, 2008

Generals must act quickly when trust funds file liens

  • Prime contractors should file suit in state court to avoid federal court, which is friendlier toward employee benefit trust funds.
    • By JESSE MILLER
    Stanislaw Ashbaugh

    Miller
    HERE'S SOME GOOD NEWS for general contractors: Washington law continues to protect you from claims by employee benefit trust funds against your payment bond or retainage fund when your subcontractors fail to pay their trust fund contributions.

    In 1994, in Puget Sound Electrical Workers Health & Welfare Trust Fund v. Merit Co., the state Supreme Court ruled that the employee benefit trust funds that are owed contributions by subcontractors do not have rights against a general contractor's bond or retainage. Then, in 2000 in IBEW Local No. 46 v. Trig Electric Construction Co., the Supreme Court reaffirmed its ruling that these trusts do not have the right to come after general contractors for any unpaid amounts.


     
    . . .


    To read this story in full login or purchase a subscription.



    Previous columns:


    
    Email or user name:
    Password:
     
    Forgot password? Click here.