When a Client Does Not Pay for Construction Services, What Contract Language Is Required to Allow a Contractor to Deny Payment to a Subcontractor on the Project?

A.E.M. Electric Services Corporation v. Transtar Electric, Case no. 2013-0148

Sixth District Court of Appeals (Lucas County)

ISSUE: Does the language in a subcontract agreement include an unambiguous "pay-if-paid" provision requiring that a contractor does not have to pay its subcontractor if the owner does not pay the contractor for services?