Subcontractor Files Lawsuit Against Parsons for Delay of Settlement Payment

The attorney-authors represent a subcontractor that recently filed a lawsuit against Parsons Global Services Inc.  and other Parsons entities (collectively referred to here as “Parsons”) in the Central District of California Federal Court.  Parsons was a primary contractor to the United States Government (USG) for construction work in Iraq.

The subcontractor that filed the lawsuit, Al-Marzoog Contracting Company (based in Iraq), alleges that Parsons unreasonably delayed settlement payments.  Al-Marzoog and Parsons had agreed to the settlement amounts years ago, but to date, Parsons has not paid Al-Marzoog, according to the lawsuit.

The lawsuit alleges Parsons has claimed it will not pay Al-Marzoog until the USG reviews the construction work matters and pays Parsons.  The lawsuit alleges that this “pay-when-paid” arrangement is unlawful because an unreasonable amount of time (years) has passed without payment.

For more details about the lawsuit, you can review the Complaint, posted below.

If you have a subcontractor settlement in which payment has been unreasonably delayed, please feel free to contact the blog-author attorney Vonda K. Vandaveer at vonda@vkvlaw.com or +1-202-340-1215.

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