A case is now pending before the Second District Court of Appeals involving the Azusa Land Partners against the Industrial Relations Agency (IRA). The dispute arose after the IRA found that the Azusa residential construction project was a public works contract to the extent it relied upon Mello Roos to install certain portions of the project, such as pipe lines, sewers, schools, etc. As a result, these portions of the job were subject to prevailing wages (20-30% higher than private construction wages). Azusa sued the IRA to overturn its decision, the Los Angeles Superior Court agreed with the IRA and held that the job was a public works project.
This is an important case for contractors and consumbers alike. If the Court of Appeals upholds the decision, residential housing costs are going to get more expensive as the cost to build the projects will increase. This is one to watch.
I am attorney Robert A. Von Esch IV and I handle construction disputes, construction defect, and real estate matters. If you have any questions, please contact me via www.voneschlaw.com.
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