The plaintiff subcontractor moved for summary judgment for $166,063.92 owed by the defendant contractor on a completed construction project.
The defendant admitted the debt but refused to pay, claiming a right of set-off under section 12 of the Construction Lien Act due to an unliquidated $1.2 million counterclaim against the plaintiff arising from a separate, ongoing project.
The court dismissed the summary judgment motion, holding that section 12 permits a trustee to retain trust funds against unproven claims from other projects, provided the funds are segregated.
The court ordered the action consolidated with the ongoing litigation regarding the other project.
