Everguard Roofing sued Makwa Builders in bankruptcy court over unpaid roofing work at a New Mexico university project. The court allowed Everguard's claim of $76,357.90, but made it contingent—meaning Everguard only gets paid if and when Makwa receives payment from the university. The court rejected Everguard's request for interest and attorney fees. This case shows that pay-if-paid clauses are enforceable in bankruptcy, but subcontractors must wait for the general contractor to get paid first.
Pay-if-paid clauses are legally binding in bankruptcy court—your payment depends on the GC getting paid by the owner, not on the GC's other finances
You cannot recover interest or attorney fees on unpaid invoices just because a contractor went bankrupt; you must prove a separate violation like the Prompt Pay Act
File your claim amendment early and include detailed documentation (invoices, ledgers, statements) to support your full amount—vague claims get reduced