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CLP in Massachusetts Lawyers Weekly Article on Pivotal Prompt Payment Act Case

Cole Law Partners Featured in Massachusetts Lawyers Weekly Article on Pivotal Prompt Payment Act Case

3 minutes

Cole Law Partners, a leading advocate for contractors in construction disputes, was extensively featured in yesterday’s Massachusetts Lawyers Weekly in an article about a pivotal Prompt Payment Act (PPA) case set for argument before the Massachusetts Supreme Judicial Court (SJC). The firm, known for its expertise in enforcing prompt payment protections under the PPA, is representing the appellee in J.C. Cannistraro, LLC v. Columbia Construction Co., et al., building on prior landmark decisions like the SJC’s 2024 ruling in Business Interiors Floor Covering Business Trust v. Graycor Construction Co.

The SJC will hear oral arguments on February 2 in Cannistraro, a case that has garnered significant attention from the Massachusetts construction industry. At stake is whether an arbitrator exceeded his authority by allowing a general contractor to pursue recoupment of “deemed approved” payments after missing statutory deadlines to object, potentially clarifying the retroactive application of Graycor and its “pay or waive” implications. The outcome could profoundly influence payment practices on private projects exceeding $3 million, addressing concerns over “vast inequities” raised in amicus briefs from groups like the Associated General Contractors of Massachusetts, the Associated Subcontractors of Massachusetts, and the Real Estate Bar Association. As one attorney noted in the article, the case is “a big deal for everybody” in the industry, with stakeholders “all watching” to see how it shapes incentives for timely payments and dispute resolutions.

Cole Law Partners Founding Partner J. Nathan Cole, who is leading the argument before the SJC, was quoted extensively on the case’s critical chronology and the need to uphold the PPA’s protections. Cole emphasized that the defendant Columbia’s delays—resulting in a two-year wait for over $950,000 in payments—violated the act’s intent. “That sequence is far from ‘prompt payment,’ and we believe the trial court correctly ruled that it is prohibited by the PPA and Graycor,” Cole said.

Cole further argued that allowing such “strategic choices” without consequences would undermine the statute: “Otherwise, upper-tier contractors would be strongly incentivized to withhold payments or rejections, forcing lower-tier subcontractors to finance both the construction and any ensuing litigation. That’s just too much for most subcontractors, and many will get rolled by better funded owners and GCs.”

Cole Law Partners Founding Partner Ross Wecker and Senior Associate Herling Romero made significant contributions to the appellee’s brief, providing key insights into the PPA’s application and the equities at play. Their work reinforces the firm’s commitment to protecting contractors from payment abuses by upper-tier parties.

The article also highlights broader industry perspectives, including from PPA drafter David E. Wilson, who supports modest clarification of Graycor while urging the court to “leave it alone” given its fairness and ease of compliance.

We’re proud to represent J.C. Cannistraro in this important case and continue advocating for fair payment practices in construction.

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