Tamimi Global, a subcontractor, sued KBR for refusing to pay invoices for dining and utility services provided during Operation Iraqi Freedom in Iraq. The trial court dismissed Tamimi's claims, but the appeals court reversed and sent the case back for trial. The key ruling: when a contractor denies a payment claim, that's when the breach happens—not when the termination notice is issued or the invoice is submitted. This timing matters for determining whether claims are valid.
Document when the contractor explicitly denies your payment claim in writing. This date is critical for proving when a breach occurred and for statute of limitations purposes.
Don't assume a breach happens automatically when a contract ends or when you submit an invoice. You must show the contractor actively refused to pay to have a valid claim.