Thursday, January 5, 2017

The Cromeens Law Firm, PLLC, Continues to Grow - Welcomes Melissa Masoom as Associate Attorney

The Cromeens Law Firm, PLLC, is pleased to announce that Melissa Masoom has joined the firm as an Associate Attorney. In her position, she represents clients in a variety of matters and disputes concerning business, construction and real estate law. 

"We are very happy to have Melissa as part of our team. She exemplifies our firm's commitment to strong client advocacy, ensuring the highest level of client trust and service at all times," stated Karalynn Cromeens, Managing Shareholder of The Cromeens Law Firm, PLLC. 
Melissa's extensive experience also includes counsel on personal injury, immigration and family law for both individuals and companies as well. Prior to joining The Cromeens Law Firm, PLLC, Ms. Masoom held positions at Nguyen & Chen, LLP, The Lanier Law Firm, the Law Office of Reginald McKamie and George R. Willy, P.C.

She graduated from the New England School of Law in 2009, and is a member of the American Bar Association and the Houston Young Lawyers Association. In addition, she is active with several non-profit legal organizations including the legal clinic at Daya, Inc., where she represents victims of domestic abuse and helps them navigate the complex nature of immigration and family law. 

About The Cromeens Law Firm, PLLC

Founded in 2006, The Cromeens Law Firm, PLLC, is a full-service, Houston-based law firm serving clients across the state of Texas. With a concentration in construction, real estate and business law, our firm is committed to providing results driven, cost-effective and personal representation to each one of our clients. 

Payment of Construction Subcontractors

Payment of Construction Subcontractors - Chapter 56 of the Texas Business & Commerce Code

"Pay-when-Paid" Clause v. "Pay-if-Paid" Clause

A "Pay-when-Paid" clause is not covered under Chapter 56, as Chapter 56 "does not affect provisions that affect the timing of a payment...if the payment is to be made within a reasonable period." It merely creates a future event as a convenient time for payment; but still requires the general contractor to pay the subcontractor. In other words, in most cases a "Pay-when-Paid" clause is enforceable.

Conversely, a "Pay-if-Paid" clause is covered under Chapter 56. It effectively shifts the burden of risk from the general contractor to the subcontractor. Technically, it is enforceable, but is easily defeated, so long as a subcontractor objects to its enforcement. Essentially, a subcontractor performing good-work can defeat the contingent payment clause 55 days after a pay application was sent, in addition to the applicable statutory notice.
An example if a typical "Pay-if-Paid" clause is as follows:

"The Owners payment to Contractor is an express condition precedent to Contractor's obligation to pay subcontractor. Subcontractor expressly assumes the risk of nonpayment or insolvency by the Owner."

Keep in mind, Chapter 56 does not apply to:
(1) Design services;
(2) The construction or maintenance of a road, highway, street, bridge, utility, water supply project, water plant, wastewater plant, water and wastewater distribution or conveyance facility, wharf, dock, airport runway or taxiway, drainage project, or related type of projected associated with civil engineering construction;
(3) Improvement to or the construction of a structure that is a:
a. Detached single-family residence
b. Duplex
c. Triplex; or
d. Quadruplex

This can very a very complicated area of law to navigate; specifically, the notice requirements. Please let us know if you have any questions or if you'd like to discuss your individual case.

This article is intended as a general educational overview of the subject matter and is not intended to be a comprehensive survey of recent jurisprudence, nor a substitute for legal advice for a specific legal matter. If you have a legal issue, please consult an attorney.