March 2019 Edition

Dear ASA Members,

ASA recently submitted a “friend-of-the-court” brief in California, encouraging the Court of Appeal to affirm a trial court ruling, citing the importance of maintaining current law on mechanic’s liens, stop notices, and payment bonds in the State of California. These laws provide meaningful security for payment for all interested parties involved in public and private construction.

The brief in the case, Crosno Construction, Inc. et al v. Travelers Casualty and Surety of America, states that arguments to the contrary conflict with the assurance of a bond as a primary obligation independent of the contract “the very intention of payment protection.”

ASA is actively involved in the promotion of legislative action across the nation and has regularly intervenes in legal actions that affect the construction industry at large. The issues at hand in the Crosno case could not be more relevant to our mission in California and across the nation, affirming subcontractor rights to timely payment for work in construction.

For details about the Crosno case and ASA’s position, see the related article in this edition of The Contractor’s Compass.

Each year, courts across the country hand down hundreds of decisions on federal and state laws, as well as court-made or “common law” or “case law,” that apply to subcontractors’ businesses. Many of the decisions impacting subcontractors interpret the contract provisions of subcontract agreements—provisions like pay-if-paid, hold-harmless, duty-to-defend, and no-damages-for-delay. Some of these decisions are precedent-setting and carry significance for subcontractors across state lines when other courts look to those decisions for guidance.

ASA’s Subcontractors Legal Defense Fund supports ASA’s critical legal activities in precedent-setting cases to protect the interests of all subcontractors. ASA taps the SLDF to fund amicus curiae, or “friend-of-the-court,” briefs in appellate-level cases that would have a significant impact on subcontractor rights. These briefs offer ASA the opportunity to educate the courts about the effects of their decisions on subcontractors across the nation.

From its inception, the SLDF has been involved in many landmark decisions, starting with its first case in 1997, Wm. R. Clarke Corporation v. Safeco Ins., which prohibited pay-if-paid clauses in California. Many people have supported the fund over the years and we invite you to join us in supporting those efforts.

Best Regards,

Courtney Little

2018-19 President

American Subcontractors Association