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August 2011 Archives

California Appellate Court Holds That Contractor Must Return All Payments When Qualifier is Not Acting as a Manager

Both California statutes and appellate courts have clearly set forth that if your contractor license is not in effect at the time you perform work you are not going to recover amounts that are due from the owner. In recent decisions, the California appellate courts have been expanding the definition of when a contractor's license is not in effect.

Expansion of public-private partnership model survives court challenge in Doyle Drive/Presidio Parkway case

The public-private partnership ("P3") delivery method involves public agencies contracting directly with private parties to perform improvement projects, with private parties sharing in cost and risk burdens. California Street and Highway Code §143, enacted in 1989, authorizes the use of P3's on some state highway transportation projects. In 2009 the legislatures amended Section 143 to greatly expand the statutory authorization of P3's for state highway transportation projects.

Are You Prepared For The 2012 Changes to California Lien Laws?

Over eight years ago, the California Law Review Commission started a review of the California construction lien laws. In 2008, the Commission recommended that the existing mechanics lien statutory laws be modified. Their objective was to modernize, simplify, and clarify the lien laws, and make them more user friendly, efficient, and effective. That recommendation (SB 189) was signed into law by the Governor in 2009 and goes into effect on July 1, 2012. This year further legislation (SB 190) was passed to "clean-up" minor issues with the widespread changes made in SB 189.

Legislation is being proposed to ensure fairness in indemnity agreements

California State Senator Noreen Evans is sponsoring Senate Bill 474 which seeks to treat private owners and developers in the same way that current law treats public entities by preventing them from requiring others to indemnify them against their active negligence. Generally speaking, active negligence includes negligent acts and omissions of a person as opposed to negligence imposed that person for failing to act, such as failing to inspect a work site for safety violations.

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