CHAPTER 7

2

Critical Legal Thinking Case

7.5

Anti-Assignment Clause In 1976, the city of Vancouver, Washington, contracted with B & B Contracting Corporation (B & B) to construct a well pump at a city-owned water station. The contract contained the following anti-assignment clause: "The contractor shall not assign this contract or any part thereof, or any moneys due or to become due thereunder." The work was not completed on time, and the city withheld $6,510 as liquidated damages from the contract price. B & B assigned the claim to this money to Portland Electric and Plumbing Company (PEPCo). PEPCo, as the assignee, filed suit against the City of Vancouver, alleging that the city had breached its contract with B & B by wrongfully refusing to pay $6,510 to B & B. Can PEPCo maintain the lawsuit against the City of Vancouver? Portland Elec. and Plumbing Co. v. City of Vancouver, 627 P.2d 1350 (Wash. Ct. App. 1981).

REFERENCES

Schlageter III, John J.; Cheeseman, Henry R.; Reed, Kathleen. Contract Law for Paralegals (p. 181). Pearson Education. Kindle Edition.

Critical Legal Thinking Case

7.7

Condition Shumann Investments, Inc. (Shumann), hired Pace Construction Corporation (Pace), a general contractor, to build "Outlet World of Pasco County." In turn, Pace hired OBS Company, Inc. (OBS), a subcontractor, to perform the framing, drywall, insulation, and stucco work on the project. The contract between Pace and OBS stipulated: "Final payment shall not become due unless and until the following conditions precedent to final payment have been satisfied... (c) receipt of final payment for subcontractor's work by contractor from owner." When Shumann refused to pay Pace, Pace refused to pay OBS. OBS sued Pace to recover payment. Who wins? Pace Constr. Corp. v. OBS Co., 531 So. 2d 737 (Fla. Dist. Ct. App. 1988).

REFERENCES

Schlageter III, John J.; Cheeseman, Henry R.; Reed, Kathleen. Contract Law for Paralegals (p. 182). Pearson Education. Kindle Edition.