FEDERALDistrict Court, W.D. Oklahoma
1997

Terry Matthews, Inc. v. C & L CONTRACTING, INC.

959 F. Supp. 1434District Court, W.D. Oklahoma • Decided 1997Remanded

HOLDING

Terry Matthews, Inc., a subcontractor, performed extra work for C & L Contracting under oral agreements that modified the original written subcontract, even though the contract required written change orders. The court ruled that subcontractors can recover payment for extra work based on executed oral agreements, and that signing a lien waiver for partial payment does not prevent recovery for work done after the waiver date. This decision protects subcontractors who perform work based on verbal instructions from site supervisors, even when formal change order procedures aren't followed.

KEY FINDINGS

Change Order

Oral agreements can modify written subcontracts in Oklahoma—you may have a valid claim for extra work even without a signed change order if you can prove the agreement was made and work was completed.

Lien Waiver

A lien waiver only covers work and payment up to its date—signing one for partial payment doesn't waive your right to claim additional work performed after that date.

Lien Rights

Document all verbal agreements about extra work immediately, including who authorized it, what was agreed, and when work was performed, to meet the 'clear and convincing evidence' standard courts require.

FULL COURT OPINION