Prompt Pay Interest and Attorney’s Fees May Be Recovered in Arbitrations
Kegler Brown Construction Newsletter May 1, 2000
The Prompt Pay Act provides that the prevailing party may recover 18% interest per annum and attorney's fees but it was somewhat unclear whether these statutory items were recoverable in an arbitration rather than in litigation in the courts. The Tenth District Court of Appeals in Franklin County has now answered that question and held that attorney's fees and prompt pay interest are both recoverable in arbitrations as well as court cases. RWS Building Co. v. North Market.
This means that prompt pay claimants will maintain the leverage to recover to the maximum extent of the Prompt Pay Act — even in an arbitration setting.