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Category: Legal
Satisfied Customers: 56902
Experience:  Licensed attorney helping individuals and businesses
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We entered into an AIA contract with a developer. He stopped

Customer Question

We entered into an AIA contract with a developer. He stopped the project. We didn't get paid for 8 months and filed lien. The bill was millions. We settled up after 8 months and signed documents shook hands and made a deal. At the time we agreed to accept payment and release the lien. We didn't charge intersest at the time in an effort to make a deal. Our contract allowed 8.5% past due and the Texas Prompt Pay Act allows even more than that maybe 18%. Two months after payment, the developer wanted to audit our expenses since the was a cost plus project. He challenged some of the charges. We have 200-300k in interest that per contract we encountered. This will easily offset any claim on his part. What are your thoughts on our position.
JA: Has anything been filed or reported?
Customer: It has recently been filed with a mediator
JA: Anything else you want the lawyer to know before I connect you?
Customer: Just want to know if we have a case...the contract is 8.25%...We think that should offset any claim they have...are we correct.
JA: Since laws vary from place to place, what state is this in?
Customer: Texas
Submitted: 7 months ago.
Category: Legal
Expert:  INFOLAWYER replied 7 months ago.

Hello and welcome. I am working on your answer and will be right back!

Expert:  INFOLAWYER replied 7 months ago.

You can charge the interest UNLESS your settlement terms exclude it, in which case the settlement reduced amounts would be binding.

Expert:  INFOLAWYER replied 7 months ago.

If the settlement did not encompass this claim, you may pursue it!

Customer: replied 7 months ago.
okay thanks....we of course had to sign a release of lien with regards ***** ***** future charges. It didn't specifically address the interest. We would not have made a deal if they were going to pursue this
Expert:  INFOLAWYER replied 7 months ago.

If its vague you may attempt it, but interest on an amount that was resolved and settled is not likely to stand and may not be good use of legal fees and time.

Expert:  INFOLAWYER replied 7 months ago.

Kindly rate me 5 stars.

Expert:  INFOLAWYER replied 7 months ago.

Please click on a 5 star rating, which is how I get credit by the website. thank you.