A window on the Prompt Payment Act’s text

ACI, the general contractor on a hotel-construction project, was sued by Ram, the subcontractor who installed the window. Ram won a summary judgment for a violation of Texas’s Prompt Payment Act. ACI asserted a defense under the Construction Trust Fund Act involving “actual expenses directly related to the construction or repair of the improvement … .” The Fifth Court found the relevant statutory language clear and unambiguous, requiring no further use of statutory-interpretation techniques: “[The Trust Fund Act provision] acts as a defense to claims of misapplication of funds the contractor holds in trust for beneficiaries. It does not apply to a claim the contractor failed to promptly pay subcontractors.” Alberelli Constr. v. Ram Indus. Acquisitions LLC, No. 05-18-01529-CV (May 15, 2020).