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News & Press: Legislative Issues

Important Information on 3 Appellate Court Cases

Thursday, September 24, 2020   (0 Comments)
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CALPASC will be issuing Amicus briefs or letters requesting review for each case.
  1. Certified Tire and Services Centers, Inc. This California appellate ruling was published on October 14, 2018. It held that Certified Tires incentive pay program was legal. The case was appealed to the state Supreme Court. That court held the case, while it was first ruling in Oman v. Delta, another incentive pay case. That case was decided June 29, 2020. The court said Delta's incentive pay programs with 4 different options was legal. Due to the way airlines operate, it is hard to compare a typical construction industry incentive pay program to the Delta program. The state Supreme Court was supposed to next rule on Certified Tire. Unfortunately, on September 23, 2020; that court sent Certified Tire back to the Appellate Court, advising them to reconsider their decision, per the parameters of legality that the Oman v. Delta ruling gave. The state Supreme Court sadly vacated the Certified Tire decision, until that ruling is revised. CALPASC will be issuing an amicus brief that we hope will give clarity to legal incentive pay programs in California.
    • You can click here for a copy of the Certified Tire original ruling.
    • You can click here for a copy of the Oman v. Delta ruling.
    1. Liberty Mutual v. Bosa Development. This federal court ruling expanded the definition of "occurrence" under a wrap-up insurance policy, to the detriment of general contractors and subcontractors. CALPASC will be issuing an amicus brief in November 2020 on this very important case.
    2. Smith v. Pulte. This California appellate ruling was unpublished, but would remove significant protections against class action construction defect lawsuits for builders and subcontractors in residential construction. Pulte is requesting the state Supreme Court to review this case, as the Appellate ruling was quite flawed. CALPASC will be issuing a letter requesting the state Supreme Court to review. You can click here for a copy of the unpublished ruling.

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