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§ 512. Penalty and attorney fee

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 73 P.S. Trade and CommerceEffective: October 10, 2018

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 73 P.S. Trade and Commerce (Refs & Annos)
Chapter 14A. Contractor and Subcontractor Payment Act (Refs & Annos)
Effective: October 10, 2018
73 P.S. § 512
§ 512. Penalty and attorney fee
Currentness
(a) Penalty for failure to comply with act.--
(1) If arbitration or litigation is commenced to recover payment due under this act and it is determined that an owner, contractor or subcontractor has failed to comply with the payment terms of this act, the arbitrator or court shall award, in addition to all other damages due, a penalty equal to 1% per month of the amount that was wrongfully withheld.
(2) An amount shall not be deemed to have been wrongfully withheld if all of the following apply:
(i) The amount bears a reasonable relation to the value of any claim held in good faith by the owner, contractor or subcontractor against whom the contractor or subcontractor is seeking to recover payment.
(ii) The claim holder complies with section 6 or 11.1
(b) Award of attorney fee and expenses.--Notwithstanding any agreement to the contrary, the substantially prevailing party in any proceeding to recover any payment under this act shall be awarded a reasonable attorney fee in an amount to be determined by the court or arbitrator, together with expenses.

Credits

1994, Feb. 17, P.L. 73, No. 7, § 12, effective in 60 days. Amended 2018, June 12, P.L. 131, No. 27, § 4, effective in 120 days [Oct. 10, 2018].

Footnotes

1
73 P.S. § 506 or 511.
73 P.S. § 512, PA ST 73 P.S. § 512
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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