Subcontractor's Lack of Comp Coverage Didn't Eliminate Right to Payment

A Texas appellate court ruled that a contractor breached the terms of its agreement with a subcontractor by refusing to pay for its work because the subcontractor had failed to provide adequate proof it had comp coverage. Case: Lauderback v. FMWB, No. 02-16-00057-CV, 10/06/2016, published. Facts: Howard Lauderback entered into a contract with the Texas Department of Transportation to provide mowing services along roadways in Cooke County. The terms of the contract required Lauderback, and any subcontractor he hired, to provide TDOT with proof of workers' comp insurance in an amount "...