New Law on Subcontractors' Rights Against Prime Contractors
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New Law on Subcontractors’ Rights Against Prime Contractors
Subcontractors often are the first to detect that something is
going wrong in the  performance of work by a prime contractor.
Recently, the Wisconsin Supreme Court reviewed a  case where
what was going wrong was that employees of the general
contractor and the owner  were misappropriating construction
funds. The architect’s signature was forged on some draw
requests that the title company, as paying agent for the bank,
had approved.         In Hoida, Inc. v. M & I Midstate Bank,
2006 WI 69, 717 N.W.2d 17, decided in June,  2006, Hoida
prefabricated wooden wall sections and roof trusses for the
prime contractor,  Packard. Hoida’s pay requests were not paid
and it wrote to the owner complaining and  explaining that it
had lien rights. However, Hoida continued to produce and ship
the wall  sections and roof trusses, even thoug