California Appellate Court Apply The Objective Standard To Determine If Is A Good Faith Dispute For The Purpose of Prompt Payment Statutes
By William C. Last, Jr.
California has a number of statutes that allow contractors to recover prompt payment penalties when the other parties do not pay the amount due within certain time limits.If there is a good faith dispute the party who is disputing the claimed amount can withhold 150 percent of the disputed amount. prompt payment statutes do not define the term "good faith dispute."