SB 465 Follow Up – Does a Contractor’s History of Legal Settlements in CA Indicate Poor Workmanship?

Should every legal settlement, arbitration and judgement that your company has been involved in be publicly posted online by the Contractors State Licensing Board (CSLB)?  This is the public policy question being asked after the Berkeley balcony collapse tragedy in 2015.  It was later revealed that the contractor who built the apartment building in question had a prior history of being involved in multiple construction defect settlements.  The California Legislature has tasked the CSLB to determine if this information could be used to better protect consumers in the future if it were to be made publicly available online for every contractor in the state.   You may remember SB 465 from the 2016 legislative session.  That measure originally would have required reporting of all settlements, arbitrations and judgments to the CSLB.  The measure was amended to a study bill at our request.

The survey below is intended to help CSLB establish if this information is helpful in their consumer protection directive.  On your behalf, we have previously testified that this potential “metric” is not a good indicator of contractor competence or responsibility. Here’s why:

  • Everybody Gets Sued in Construction Defect Claims — Construction defect claims often include every contractor on a job regardless of their involvement in the disputed work.  Lawyers’ hunt for deep pockets – $$$ is a big reason; and
  • Insurance Companies Compel Settlements Regardless of a Contractor’s Innocence — Insurance companies often encourage settlement regardless of a contractor’s work being in question due to the excessive cost of litigation in California.  “Get out early, get out cheaper” is the mantra;
  • Settlements Do Not = “BAD CONTRACTOR” – Due to the litigious nature of lawyers in California, there is not necessarily a linkage between the number of legal actions a contractor has been involved in and the competence or responsibility of that contractor. It may mean nothing more than that contractor has performed a lot of work in California.

If you are concerned about the prospect of having to divulge all your company’s litigation history to the CSLB and this information being publicly posted online, please take a moment to respond to the CSLB questionnaire below.  All responses are anonymous.


Your voice is important to CSLB!

Today, we’re asking for your input on a significant issue.

We are in the process of putting together a report for the state Legislature under Senate Bill 465 (Hill). The report will look at whether CSLB’s consumer protection mission would benefit by requiring licensed contractors to report specific court judgments, arbitration awards, and settlements.

We’re asking that you please give us five minutes or so of your time to complete a survey which will be an important component of the report.

Your answers are completely anonymous. You will not receive any further contact from CSLB or any other party based upon your taking this survey.

Please take the survey that best applies to your situation:

I am a Licensed Contractor

I used to be a Licensed Contractor

I am a Consumer

I work for an Insurance Company


Recent Posts

Brunch Break

Join us in an opportunity to get to know your fellow WPCCA members for brunch at the beautiful Old Ranch Country Club in Seal Beach! This event will feature a presentation by the Apprenticeship Director of Training, David Burtle, who…

March 28, 2023

WPCCA 2023 Employment Law Updates Webinar

With a new year comes new employment laws. Join us for an overview of 2023 Employment Law Updates. Our presenter, Shauna Correia, Esq., will highlight recent developments and changes to employment law pertinent to subcontractors in SoCal.   Date: Wednesday, April…

March 20, 2023

NLRB Imposes Broad Restrictions On Severance Agreements

On February 21, 2023, the National Labor Relations Board (NLRB or the Board) in McLaren Macomb  (372 NLRB No. 58) held that severance agreements containing broad non-disparagement and confidentiality provisions are unlawful under the National Labor Relations Act (NLRA or the…

March 3, 2023

OSH Appeals Board Decision in Heat Illness Prevention Case Adds Clarity to Provision of Water Requirements

Sacramento—The Department of Industrial Relations’ Occupational Safety and Health Appeals Board (OSHAB) has issued a precedential decision regarding the provision of water at outdoor worksites, affirming that it must be as close as practicable to the areas where employees are…

February 27, 2023

Appellate Court Rejects Neutral Time Rounding When Electronic Timekeeping is Used

California courts have long approved neutral rounding policies (See’s Candy Shops v Superior Court, 210 Cal App. 4th 889 (2012). However, the California Court of Appeals recently in Camp v. Home Depot USA, Inc. No. H049033, 2022 WL 13874360 (Cal…

February 3, 2023