Stop payment notice & Waivers

2 weeks ago

A stop payment notice was sent for 70K. However, there negotiated a change order which reduced the amount due to 40K. Does the property owner keep the extra 30k? Does the property owner assume that we got paid the 30k because of the discrepancy?

When a stop notice is sent it freezes the funds, can a conditional waiver help get us paid?

Managing Partner Gibbs Giden LLP

I’m sorry, but I’m not sure I understand your questions. If the amount of a stop payment notice claim is reduced by a negotiated change order, then the claimant should serve a Partial Reduction of Stop Payment Notice to reflect the amount then due to the claimant.

–CN

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