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Tennessee Supreme Court Holds Contractor Potentially Liable For $300-Per-Day Penalty Wednesday, June 30, 2021 The Tennessee Supreme Court on Wednesday held that a general contractor may be required to pay a $300-per-day penalty under Tennessee law for its failure to pay a subcontractor for work completed on a Nashville construction project. Applying Tennessee’s Prompt Pay Act, the Court reversed the trial court’s decision that the subcontractor’s claim was filed too late; it held the general contractor could be liable for the penalty for the year before the subcontractor filed its lawsuit. In 2013, general contractor Holladay Construction Group, LLC hired subcontractor Snake Steel, Inc.

Davidson countyUnited statesJustice jeff bivinsJustice holly kirbyJustice cornelia clarkJustice corneliaa clarkJustice sharong leeSupreme courtChancery courtTennessee supreme court onSnake steel incTennessee supreme courtHolladay construction groupPrompt pay actSnake steelPrompt pay