A controversial California appellate decision was rendered this summer in GOLDEN STATE BORING AND PIPE JACKING v. EASTERN MUNICIPAL WATER DISTRICT (SAFECO INSURANCE COMPANY) affecting suppliers, contractors and public entities on California public works of improvement.
After a coalition of construction industry organizations (including the American Subcontractors Association) called on the California Supreme Court to review or, alternatively, to depublish the case so it does not set a precedent, on November 12, 2014, the California Supreme Court officially depublished the decision.
This is a welcome development for most claimants on California public works of improvement and eliminates the uncertainty imposed upon public entities who were uncertain whether to honor stop payment notices served prior to the recordation of a notice of completion.
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