Maven Mechanical, a mechanical subcontractor, sued Magnum Air for non-payment of work performed. The Texas Court of Appeals affirmed that Magnum breached the contracts first by failing to pay Maven timely, and that Maven suffered no damages from any alleged breach by Magnum. This case is critical for subcontractors because it establishes that a general contractor cannot withhold payment and then claim the subcontractor breached—the payment obligation comes first.
If your GC doesn't pay you on time, you may have grounds to stop work or sue without being liable for breach yourself. The court found Magnum's failure to pay was the first breach.
Don't accept 'pay-when-paid' clauses that make your payment contingent on the GC getting paid by the owner. This case shows courts will enforce timely payment obligations regardless.
Document all work performed and invoices sent. Maven won because it proved work was done and payment was owed—the burden is on the GC to show you didn't perform.