A subcontractor (Honeycutt) performed air conditioning work for a general contractor (Kyle) on the property owner's (Stolz) leased space. When the general contractor didn't pay, Honeycutt sued the property owner directly. The Texas court ruled that because Honeycutt had settled and released claims against the general contractor, he lost the right to pursue claims against the property owner—even though an indemnity bond existed. This means subcontractors cannot bypass their contractor relationship by suing the owner after settling with the contractor.
Never settle or release claims against your general contractor without understanding you may lose rights to pursue the property owner or other parties
A lien waiver or settlement agreement with the GC can eliminate your ability to collect from the owner, regardless of bonds or other protections