Subcontractor Files Lawsuit Against Parsons For Delay Of Settlement Payment

On behalf of Peterson, Berk & Cross, S.C.

PBC Attorney Michael Brown, along with co-counsel Attorney Vonda Vandaveer, represent a subcontractor that recently filed a lawsuit against Parsons Global Services Inc. and other Parsons entities (collectively referred to here as “Parsons”) in the Central District of California Federal Court. Parsons was a primary contractor to the United States Government (USG) for construction work in Iraq.

The subcontractor that filed the lawsuit, Al-Marzoog Contracting Company (based in Iraq), alleges that Parsons unreasonably delayed settlement payments. Al-Marzoog and Parsons had agreed to the settlement amounts years ago, but to date, Parsons has not paid Al-Marzoog, according to the lawsuit.

The lawsuit alleges Parsons has claimed it will not pay Al-Marzoog until the USG reviews the construction work matters and pays Parsons. The lawsuit alleges that this “pay-when-paid” arrangement is unlawful because an unreasonable amount of time (years) has passed without payment.

For more details about the lawsuit, you can review the Complaint, posted below.