Weitz Co., a subcontractor, sued MH Washington and its parent company MacKenzie House for breach of contract. The court found both companies jointly liable because MacKenzie House exercised complete control over MH Washington's operations and decisions. The jury determined Weitz performed substantially on the contract despite disputes over payment and change orders. This case matters because it shows that parent companies can be held responsible for their subsidiaries' contract breaches when they actively control them.
Document all communications showing who actually makes decisions on a project—parent companies can be liable if they control subsidiary operations
Substantial performance may still entitle you to payment even if the work isn't 100% perfect; keep detailed records of what you completed
Lien waivers and retention disputes are enforceable, but only if the underlying contract was properly performed—don't sign away rights prematurely