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Is there a statute of limitations in Michigan for the paid-if-paid clause? What is the MCL?

MichiganConstruction Contract

Hello: I am a legal studies student and I am trying to find the Michigan statute (MCL) is for paid-if-paid clause statute of limitations. Thank you, Erika

1 reply

Sep 8, 2020

Michigan does not have a statute that addresses pay-if-paid clauses. Michigan courts have upheld pay-if-paid clauses where the receipt of payment from the owner to the contractor is made an express "condition precedent" to the contractor's obligation to make payment to a subcontractor or supplier. The leading case on point is Berkel & Co Contractors v Christman Co, 210 Mich App 416, 420; 533 NW2d 838 (1995).  

If your question is aimed at the statute of limitations for contract claims in Michigan, the answer is 6 years. See, MCL 600.5807(9). http://legislature.mi.gov/doc.aspx?mcl-600-5807
 

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