Kraig Schutter Successfully Defends Local Contractor in Subcontracting Case

Posted: October 26, 2017 

One of our building and construction trade clients located in Midland, Michigan found it necessary to remove a subcontractor from a job in Indiana due to the subcontractor’s unwillingness or inability to pay its vendors and meet related obligations.  When our client made payment directly to those creditors and subtracted the amount from what was owed to the subcontractor, the subcontractor sued our client in an Indiana state court.  Reviewing the written subcontract, Kraig demanded that the subcontractor withdraw its lawsuit or face sanctions.  Since an arbitration provision existed in the contract, Kraig raised issues of federal preemption under the Federal Arbitration Act which disallowed the plaintiff/subcontractor from proceeding in state court.  On the strength of Kraig’s demand letter, the plaintiff withdrew the claim and, as of this writing, has not attempted to resurrect any claim against our client in any other forum.

Congratulations to Kraig on a great result for the client.

This article is published by the Masud Labor Law Group, and is intended as general information only.  This article is not intended to provide legal advice or opinion, as such advice may only be given when related to specific fact situations.  Questions or comments concerning this article should be directed to the Masud Labor Law Group, 4449 Fashion Square Blvd., Ste. 1, Saginaw, Michigan, 48603, (989) 792-4499.  E-Mail: .(JavaScript must be enabled to view this email address). ©Masud Labor Law Group 2011.  All rights reserved.  Reproduction of this article in whole or in part, without express permission from the Masud Labor Law Group is prohibited.

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