Special Fee Statute Update: United Rigger Decision Accepted For Review By California Supreme Court

 

Interpretation of Retention Prompt Payment Statute At Issue.

     On December 5 and 18, we posted on the 2/1 DCA’s United Rigger decision, which among other things split company with another sister intermediate appellate court on the interpretation of the retention prompt payment statute and accordingly reversed a $150,000 fee award to the then prevailing contractor based on its merit interpretation. We can now report that the California Supreme Court granted review of this case during the week of March 14, 2016. Here is the weekly summary of the issue presented for review:

     “#16-83 United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., S231549. (B258860; 243 Cal.App.4th 151; Los Angeles County Superior Court; VC062679.) Petition for review after the Court of Appeal affirmed in part and reversed in part the judgment in a civil action. The court limited review to the following issue: May a contractor withhold retention payments when there is a good faith dispute of any kind between the contractor and a subcontractor, or only when the dispute relates to the retention itself?”