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The ASA Subcontractors Legal Defense Fund (SLDF) recently achieved an important legal victory for subcontractors and suppliers in Arizona, reinforcing protections against owners who benefit from construction work without paying for the improvements received.

In Markham Contracting Co., Inc. v. Cahava Springs Phase 1, Inc., et al., the Arizona Supreme Court confirmed that an owner may be held liable for unjust enrichment when it requests, authorizes, or accepts improvements performed by a contractor or subcontractor and fails to compensate the party who provided the work.

The Court rejected the argument that an owner could avoid responsibility simply because there was no direct contractual relationship, or “privity,” between the owner and the unpaid party. The ruling clarifies that owners cannot retain the benefit of construction improvements without ensuring that those who performed the work are compensated.

This decision is a significant win for Arizona-based subcontractors and suppliers working on construction projects. It strengthens an important legal remedy when payment disputes arise and reinforces the principle that parties who receive the benefit of construction work should not be allowed to avoid payment obligations through contractual technicalities.

The ASA SLDF continues to advocate for subcontractor protections nationwide by supporting legal efforts that preserve fair payment practices, strengthen contract rights, and ensure subcontractors and suppliers have meaningful remedies when disputes occur.

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