Contractor Community –
Your Legal Defense Fund at Work: ASA Fights for Subcontractors in Prompt Pay Case in Texas
The American Subcontractors Association is moving forward with a friend-of-the-court brief in Texas, seeking an appeal on a decision that held that an entity could not be sued for prompt payment violations because it had not waived sovereign immunity. The case, Texas Southern University v. Pepper Lawson Horizon International Group, LLC,is currently on appeal to the Texas Supreme Court.
At issue is the construction of a new student house at Texas Southern University. In February 2014, the University and Pepper Lawson Horizon (“Contractor”) International Group entered into a contract for the work. Shortly after beginning work, while drilling piers for the foundation, the Contractor discovered that a previous building at the worksite had not been fully demolished and remnants of that building were buried beneath the worksite and obstructed progress on the Project. Though the University agreed to a cost increase to pay the Contractor to remove the obstructions, it denied the Contractor’s request for additional time. The Contractor’s progress was further slowed as it encountered other problems and delays, including weather delays, power delays and problems arising out of defective plans, but the University denied all requests for additional time. At completion, the Contractor invoiced the University for claimed balance due, but the University refused to pay. The Contractor sued, asserting that the University had breached the parties’ contract by failing to pay and by denying its requests for equitable time extensions.
The University denied the Contractor’s allegations, arguing that “sovereign immunity has not been waived for [the Contractor’s] claims.” It also stated that the Contractor had failed to point to a specific contractual provision that it had breached and that the Prompt Pay Act does not expressly waive sovereign immunity. The trial court denied the University’s jurisdictional defenses and set the matter for trial. On appeal, however, the Court of Appeals of Texas, First District, Houston, reversed. The appeals court rendered judgment dismissing the case for lack of subject matter jurisdiction. The Contractor is appealing, seeking review from the Texas Supreme Court.
The Subcontractor Legal Defense Fund determined in its evaluation that, though the statute is Texas specific, the principle of the necessity of a waiver of sovereign immunity as a prerequisite to public owner liability is widespread across the 50 states. An unfavorable result could have the potential to have a ripple effect into other states.
Brian Carroll, Sanderford & Carroll, P.C., San Antonio, TX, will prepare the brief for ASA. ASA’s Subcontractors Legal Defense Fund financed the brief. 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. Contributions to the SLDF may be made online.
Founded in 1966, ASA promotes the rights and interests of subcontractors, specialty contractors and suppliers by building strength in the community through education, advocacy, networking and professional growth. ASA adheres to and promotes quality construction, ethical and equitable business practices, safety in the work environment, and best industry practices. For more information about ASA, visit www.asaonline.com, and for more information about the SLDF, visit www.sldf.net.
Skilled Labor Staffing Company Tradesmen International® Celebrates
30 Years with New Brand Look and Market Expansion
Tradesmen International®, an industry leader in skilled trades staffing and labor-cost
containment solutions, announced today the launch of a new brand look featuring a rejuvenated corporate logo and individualized market sector logos. In its 30th anniversary year, the fresh look is an affirmation of the company’s longevity, renewed commitment to their clients, craftworker and office employees, and a celebration of the company’s cultural focus on achieving unprecedented levels of craft worker safety, productivity, and craftsmanship.
The modernized corporate logo is now in red, white, and blue in homage to the company’s long history of putting America’s skilled workers to work. Specialized vertical market logos were created for each of the company’s specialized service groups: Construction Staffing Solutions (representing commercial, residential, and heavy industrial construction), Industrial
and Manufacturing Staffing Solutions, Marine Staffing Solutions, Renewable Energy Staffing Solutions, and Institutional Staffing Solutions.
Leveraging an employee database of more than 1.2 million skilled craft professionals screened and vetted by more than 250 full-time recruiters nationally, the company is well-positioned to answer the nationwide skilled labor shortage caused by the retirement of baby boomers, fewer people entering the trades, as well as the pandemic-driven “great resignation.”
The Biden Administration to Create 460 New Registered Apprenticeship Programs
On September 1, 2022, the Biden Administration announced the creation of 460 new registered apprenticeship programs with more than 10,000 of those trained workers hired over the next year. The initiative is entitled, “the Apprenticeship Ambassador Initiative, a national network of more than 200 employers and industry organizations, labor organizations, educators, workforce intermediaries, and community-based organizations, who are committed to strengthening and diversifying Registered Apprenticeship. The Apprenticeship Ambassadors have existing Registered Apprenticeship programs in over 40 in-demand industries and have committed to expand and diversify these programs over the next year by collectively: developing 460 new Registered Apprenticeship programs across their 40 industries, hiring over 10,000 new apprentices, and holding 5,000 outreach, promotional, and training events to help other business, labor, and education leaders launch similar programs. Ambassadors will also use their expertise to scale innovative practices and increase access to Registered Apprenticeship for underserved populations, including women, youth, people of color, rural communities, people with arrest or conviction records, and people with disabilities.” The North American Building Trades Union said it plans to train 250,000 new apprentices over the next five years, and IBM Corp. will contribute $250 million on registered apprenticeship programs and other training by 2025.
Additionally, the Department of Labor is in the process of rescinding the Industry-Recognized Apprenticeship Program (IRAP), finalized by the Trump administration in 2020. A final rule to officially end the program has been under review at the Office of Management and Budget since June, the last step before the regulation is published and goes into effect.
Finally, per the Biden Administration, their efforts to “expand the registered apprenticeship model have created over 4,000 new registered programs and resulted in more than 1 million apprentices being hired. In FY 2021, there were around 600,000 workers participating in apprenticeship programs across the country. Of those, 96,000 apprentices completed their program in FY 2021.
SLDF New Orleans Fundraiser
See the ad on the next page [or fix text, if needed, Angela]. Sponsorship opportunities are still available, and includes recognition on event materials and promotions with ASA membership. All proceeds benefit ASA’s Subcontractor Legal Defense Fund. Contact Shannon Oscar at soscar@asa-hq.com.
HEADLINE: Get Ahead of the Holidays
It’s that time of year again. Time to get ready for the peak shopping – and peak shipping season. Prepping can feel like a heavy lift, but it doesn’t have to be. Whether you need to find the perfect balance between shipping speed and cost, packaging advice or more advanced tracking capabilities, there’s a UPS® solution to help. Start covering your shipments today: www.savewithups.com/asamembers
Best of all? Take advantage of your ASA members-only savings and receive:
· 50% off Domestic Next Day / Deferred
· 30% off Ground Commercial / Residential
· 50% off International Exports & 40% off Imports
· Up to 50% off on additional services.
· Plus, UPS Smart Pickup® service is free.
