Payments by Prime Contractor to Subcontractor in Contravention to Assignment Agreement Requiring Payment to Bank, Entitles Bank to Recover on Every Misdirected Check Even Though Significantly Exceeding Actual Damages

by | Aug 14, 2013 | Newsletter Article

A bank was found entitled to recover the full value of all payments from a prime contractor that were misdirected to the subcontractor, where the prime contractor had acknowledged the subcontractor’s assignment agreement with the bank and had agreed to make payments...