Can a prime contractor in Minnesota sue an owner under prompt payment and recover attorney's fees, just like a subcontractor could if suing for the interest accumulated from a GC not paying them?
1 reply
Nov 26, 2019
Looking to Minnesota's prompt payment statute, it does not appear that an owner will have quite the same protection as a subcontractor might. If the owner fails to make timely payment, a contractor will have recourse against that owner under a number of potential remedies - including filing suit based on the state's prompt payment act. However, it doesn't appear that interest penalties will be available for contractors like they are for subs. If successful in a legal claim, though, it's always possible that attorney fees might be awarded.
Of course, note that prompt payment laws are hardly the only recovery option that will be available if payment isn't made. Payment could be forced through actions like sending invoice reminders, demand letters, notices of intent to lien, filing a mechanics lien, or other legal claims (like breach of contract) could all be effective to force payment, in their own way.
Also - I noticed that the "State" on this question reads New Jersey, while your question specifically identifies Minnesota. Keep in mind that the laws of the state where the work was performed will generally apply.