The Virginia Court of Appeals recently upheld a ruling in a construction payment dispute involving Gebrezgi Kahsai, doing business as Soli Trucking, and FAM Construction, LLC. The court ruled that Soli Trucking waived its right to claim additional payments by signing lien waivers, which has significant implications for subcontractors and their rights in similar construction contracts.

The case, recorded as No. 1710-25-4, centers on a disagreement over payments for work performed on the Transform 66 Outside the Beltway Project. This project involved extensive expansion work on Interstate 66 west of the I-495 Capital Beltway. The dispute arose after Soli Trucking, a subcontractor for FAM Construction, sought payment for approximately $400,000 in disputed invoices after having signed lien waivers for prior payments.

In July 2018, FAM Construction subcontracted Soli Trucking for trucking services related to the project. As part of their agreement, FAM required Soli Trucking to submit waiver forms with each application for payment. These waivers included provisions that effectively relinquished Soli Trucking's rights to claim additional payments for work done up to the date specified in the waivers. The court's ruling emphasized the importance of these waivers in determining the outcome of the case.

The dispute escalated when Soli Trucking submitted two payment applications in January 2024 for work completed in the previous months. Despite knowing about the outstanding claims, Soli Trucking signed the required waiver forms to receive payment. In April 2024, FAM paid Soli Trucking a total of $3,885, which Soli Trucking accepted, leading to the argument that it had waived its rights to claim further payments.

When Soli Trucking later filed a lawsuit in July 2024 seeking an additional $401,571.28, FAM and Zurich American Insurance Company responded with pleas in bar, arguing that the waivers signed by Soli Trucking barred any further claims for payment. The circuit court agreed, stating that the waivers clearly indicated that Soli Trucking had relinquished any claims for payment for all labor and services provided through the specified dates.

The court's opinion, issued on November 10, 2026, was authored by Judge Steven C. Frucci and affirmed the lower court's ruling. The court found that the language of the waivers was clear and unambiguous, stating, "Soli Trucking waived any claims or demands for payment for all labor, services, equipment, [and] material furnished to FAM through the end of the pay period indicated in the attached statements." The court also noted that Soli Trucking had not provided sufficient evidence to support its claims that FAM had waived its rights through past payments.

This ruling underscores the importance of understanding the implications of signing lien waivers in construction contracts. Subcontractors must be aware that signing such waivers can limit their ability to claim additional payments for work performed. The decision also highlights the need for subcontractors to ensure that all disputes are resolved before signing any waivers, as doing so may prevent them from recovering owed amounts.

Going forward, this ruling may influence how subcontractors approach their contracts and payment applications. It serves as a reminder that once a subcontractor signs a waiver, they may lose their rights to claim further payments, regardless of any outstanding disputes. This case may also set a precedent for future disputes involving lien waivers and payment rights in the construction industry.

As for what’s next, it is unclear if Soli Trucking plans to appeal the decision. The court filing did not indicate any pending related cases. However, the outcome of this case may prompt other subcontractors to review their contracts and lien waiver practices to avoid similar situations.