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Official Blog of the AALS Section on Contracts

Mississippi town pays plumber twice

Us_90 The town of Gautier, Mississippi, will have to pay double for some plumbing work on the reconstruction of U.S. Route 90.  The town, which owed $1,006 to Nelson Plumbing, accidentally paid the money to Nelson’s subcontractor, Alabama Precast.

The problem arose because Alabama Precast filed a notice of lien with the town, which mistook it for a garnishment notice and paid the money over.  Nelson may owe the money to the sub, but that’s for the courts to sort out.  In the meantime, the town will pay the $1,006 to Nelson, which is about 80 percent through the task of installing water and sewer lines for the highway project, and which had threatened to stop work as a result of the town’s breach.

It’s a smart move for the town—Nelson is already 5 months behind schedule and in the penalty phase of its contract.

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