Legal Opinion · Dissent

Hayek v. Western Steel Company

Texas Supreme Court

Decided March 15, 1972No. B-2882Published

1DissentWalker, Justice

I respectfully dissent. The language of Art. 5469 is not as clear as it might be, but that is a very good reason for avoiding the construction adopted by the Court. Under the majority holding the statutory retain-age withheld by the owner from an original contractor who has fully performed and paid all of his workmen and suppliers will be subject to claims for labor and material furnished to another original contractor who is insolvent. This will inevitably lead to one of two rather harsh results: either (1) the owner will be required to pay more than the total of the contractual obligations…

2Cases cited2 opinions

  1. Hunt Developers, Inc. v. Western Steel CompanyCourt of Appeals of Texas · 1966
  2. Lennox Industries, Inc. v. Phi Kappa Sigma Educational & Building Ass'nCourt of Appeals of Texas · 1968

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