Benton State Bank v. Warren

George Rose Smith, Justice.

The appellees, the Warrens, are engaged in building and operating apartments in California and elsewhere in the United States. In 1974 the Warrens, as owners and general contractors, began the construction of a 111-unit apartment complex at 2000 Reservoir Road in Little Rock. Four separate sub-contracts — for concrete work, rough carpentry, finish carpentry, and heating and air conditioning — were let to Harps General Contractors.

Harps failed to pay its suppliers of labor and materials, even though adequate progress payments were made from time to time by the…