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Pay if Paid?

California Supreme Court Decision Defeated

SACRAMENTO, CA

As a result of the combined efforts of a number of landscape contractors and a substantial grassroots campaign, a specific portion of California AB-2280-- which would have substantially reduced the effects of the state Supreme Court's favorable "Pay if Paid" decision-- was recently defeated.

The efforts started even before the current state legislative session began, when it was learned that at least one group would be proposing legislation that would overturn the Clarke v. Safeco decision. Those in the forefront were Phil Vermeulen, representing the Marin and Sacramento Builders Exchange; Kevin Pedrotti representing the California Builders Exchange; Skip Daum representing the Construction Industry Legislative Conference; and Mike Rocco representing the Engineering and Utility Contractor Association. As things got heated up, a number of letters and telephone calls were made to various members of the Senate Business and Professions Committee.

As a result of the combined effort, the Sponsors of AB-2280 agreed to delete the language that would affect the Pay if Paid decision from the bill.

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