Lack of payment for construction leads to commercial litigation

On Behalf of | Oct 14, 2019 | Commercial Litigation |

While most company owners hope that interactions with outside parties go well, they understand that disputes could arise. Of course, they often set out with the intention of having new business relationships go well, especially if a company is hired by another company to perform certain duties. Unfortunately, if the hired company does not receive its proper compensation, commercial litigation could result.

Texas readers may be interested in a case involving such an issue in a nearby state. According to reports, a construction company was hired by another company to make repairs to a mall that had suffered damage after a vehicle backed into the building. The total cost of the repairs reached approximately $34,600. However, the company associated with the mall has apparently not paid the construction company even though the project was completed a year ago.

It was noted that the mall has been losing tenants for months, and the doors to the interior of the mall had been closed to the public. It was not clear whether financial issues have contributed to the lack of payment as the company did not provide a comment for the report. Nonetheless, the construction company has filed a lawsuit in efforts to obtain its due compensation.

Not being paid for a project can be immensely difficult for construction companies. They may not be able to pay suppliers, employees or others associated with the work and can face a number of other issues. If Texas companies have suffered due to clients not paying, they may want to gain information on their commercial litigation options for seeking compensation.