Pay-when-paid clauses set a reasonable timing mechanism for subcontractor payment, typically treated by Texas courts as establishing a deadline rather than shifting risk.
The cases below are organized by outcome and significance. Flagship cases represent the most-cited opinions that have shaped how pay-when-paid clauses are interpreted in Texas courts.
No-damages-for-delay clauses in construction contracts need not meet the conspicuousness requirement established in Dresser for exculpatory negligence clauses, and such clauses are enforceable to bar delay damages absent specific exceptions.
An insured may assert an article 21.21 claim against its excess liability carrier for unfair claim settlement practices, but liability requires proof of a proper settlement demand within policy limits that an ordinarily prudent insurer would accept.
A supplier cannot enforce a payment obligation against a project owner based on a letter offering optional direct payment arrangements, where the supplier's own deposition testimony demonstrates it never understood the letter as a binding contract.
74 opinions sorted by most cited
| CASE | CITATION | OUTCOME | CITES |
|---|---|---|---|
| Green International, Inc. v. Solis Texas Supreme Court | 951 S.W.2d 384 (1997) | modified | 861 |
| Rocor International, Inc. v. National Union Fire Insurance Co. of Pittsburgh Texas Supreme Court | 77 S.W.3d 253 (2002) | modified | 422 |
| EBC, Inc. v. Clark Building System, Inc. Court of Appeals for the Third Circuit | 618 F.3d 253 (2010) | enforced | 361 |
| Sage Street Associates v. Northdale Construction Co. Texas Supreme Court | 863 S.W.2d 438 (1993) | remanded | 270 |
| El Paso Field Services, L.P. and Gulfterra South Texas, L.P. F/K/A El Paso South Texas, L.P. v. Mastec North America, Inc. and Mastec, Inc. Texas Supreme Court | 389 S.W.3d 802 (2012) | enforced | 188 |
| Chilton Insurance Co. v. Pate & Pate Enterprises, Inc. Texas Court of Appeals, 4th District (San Antonio) | 930 S.W.2d 877 (1996) | modified | 175 |
| L & A Contracting Company v. Southern Concrete Services, Inc. Court of Appeals for the Fifth Circuit | 17 F.3d 106 (1994) | modified | 157 |
| Zachry Construction Corporation v. Port of Houston Authority of Harris County, Texas Texas Supreme Court | 449 S.W.3d 98 (2014) | remanded | 151 |
| Mid-Continent Insurance Co. v. Liberty Mutual Insurance Co. Texas Supreme Court | 236 S.W.3d 765 (2007) | voided | 143 |
| Texas Southern University v. State Street Bank & Trust Co. Texas Court of Appeals, 1st District (Houston) | 212 S.W.3d 893 (2007) | remanded | 133 |
| Blakeslee Arpaia Chapman, Inc. v. EI Constructors, Inc. Supreme Court of Connecticut | 239 Conn. 708 (1997) | enforced | 126 |
| AMX Enterprises, L.L.P. v. Master Realty Corp. Court of Appeals of Texas | 283 S.W.3d 506 (2009) | modified | 109 |
| Aetna Casualty And Surety Co. v. Aniero Concrete Co. Court of Appeals for the Second Circuit | 404 F.3d 566 (2005) | enforced | 106 |
| Comsys Information Technology Services, Inc. v. Twin City Fire Insurance Co. Texas Court of Appeals, 14th District (Houston) | 130 S.W.3d 181 (2004) | remanded | 99 |
| PSE Consulting, Inc. v. Mercede Supreme Court of Connecticut | 267 Conn. 279 (2004) | enforced | 85 |
| J.A. Jones Construction Co. v. Lehrer McGovern Bovis, Inc. Nevada Supreme Court | 89 P.3d 1009 (2004) | remanded | 79 |
| Excess Underwriters at Lloyd's, London v. Frank's Casing Crew & Rental Tools, Inc. Texas Supreme Court | 246 S.W.3d 42 (2008) | enforced | 74 |
| Beard Family Partnership v. Commercial Indemnity Insurance Co. Texas Court of Appeals, 3rd District (Austin) | 116 S.W.3d 839 (2003) | enforced | 71 |
| Sheehan Construction Co. v. Continental Casualty Co. Indiana Supreme Court | 935 N.E.2d 160 (2010) | remanded | 68 |
| Greenblatt v. Delta Plumbing & Heating Corp. Court of Appeals for the Second Circuit | 68 F.3d 561 (1995) | reversed | 60 |