The Hegels had a homeowner's insurance policy with First Liberty for their Spring Hills, Florida residence. That policy insured against "Sinkhole Loss" as an exception to the policy's exclusion for damage caused by earth movement. Under the policy, "Sinkhole Loss means structural damage to the building, including the foundation, caused by sinkhole activity. The policy, however, did not define the term "structural damage."
As a result of the passage of Senate Bill (SB) 854, significant changes were made to Cal. Labor Code §1771.1 and §1725.5. All licensed contracts who work on or intend to work on public works projects must be registered with the California Department of Industrial Relations. Beginning March 1, 2015, all contractors were required to register with Department of Industrial Relations in order to bid on public works projects or be listed in a bid proposal. As of April 1, 2015, only contractors who have registered with the Department of Industrial Relations will be eligible to be awarded a public works contract, even if the project did not go out to bid.