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Court Says Substitution Hearing Decision Is Narrow And Limited

Wednesday, April 04, 2007 12:00 pm

Court Says Substitution Hearing Decision Is Narrow And Limited

A California appeals court ruled that a substitution hearing does not decide breach of contract issues, and so the subcontractor replaced on the job could sue the contractor.

Kemp Brothers Construction, Inc. was the prime contractor on two public works projects. Kemp subcontracted with Titan Electric Corp. and the project progressed until Titan's employees walked off the job because Titan could not make its payroll.

Kemp submitted a request to the Los Angeles Unified School District (LAUSD) to replace Titan with A&R Electric. California law gives the subcontractor originally listed in the subcontract the right to perform the specified work. Substitutions are not allowed unless the awarding authority consents. The LAUSD held a substitution hearing and granted Kemp's [...]

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