Blog Post
03/28/2013
By Gregory M. Boucher

In a decision under the Uniform Commercial Code (“UCC”) that could apply in any state, the Massachusetts Supreme Judicial Court (“Court”) ruled this month that when a general contractor agrees to an assignment of payments to a subcontractor’s lender, and the general contractor mistakenly makes payments to the subcontractor, the general contractor is liable to the lender for all mistaken payments, even if all payments exceed the lender’s damages. See Reading v. Co-Operative Bank v. Suffolk Construction Company, Inc., 464 Mass. 543 (2013).

Facts: