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Opinion 71

Case Name: 

Gen. Elec. Mtg. Corp. v. S. Vill., Inc. (In re S. Vill., Inc.)

Judge: 
Judge Clark
Date: 
Mar-29-1983
Case Number(s): 
82PC-0127
Status: 

UNPUBLISHED

Body: 

A state court action seeking foreclosure of debtor's property was removed to the bankruptcy court, and defendant subcontractor moved for summary judgment on its cross-claim against defendant contractor. The issue before the court was whether a payment provision in the contractor/subcontractor contract was a condition precedent to subcontractor's payment. The court held that the provision, which indicated that subcontractor would be paid 10 days after owner paid contractor, was not a condition, and that subcontractor had not agreed to assume the risk of owner's non-payment. In the event of owner's non-payment, contractor was obliged to pay subcontractor "within a reasonable time." The court rejected contractor's argument that a reasonable time was the time necessary for it to exhaust its remedies against owner.

Internal Ref: 
Opinion 71
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