California Case Summaries
 
September 1, 1999
 

Workers' Compensation Immunity Protects Owner and

Construction Manager from Direct or Vicarious Liability

Claims from Injured Subcontractor

Seth Schimmel - Tampa

813-227-8500

A subcontractor's injured employee, who has received workers' compensation benefits, may not pursue tort claims for the same injury against the owner, construction manager, and the construction manager's employer. Zamudio v. City and County of San Francisco 82 Cal. Rptr. 2d 664 (Cal. App. 1999).

The court held that the owner and the construction manager were not vicariously liable; that an employee cannot avoid the limits of workers' compensation through such a claim; and rejected claims that the owner and construction manager were independently negligent. The court found neither the owner nor the construction manager obligated to supervise the subcontractor's work. The owner and/or contractor could be negligent only if they retained control "over the operative details of the hired work."

Rejected Bidder Awarded Damages

Bill Grant - Orlando

407-244-1162

The Los Angeles County MTA solicited bids for construction with a minimum goal of 30% DBE participation. The low bidder mistakenly marked the bid form showing this subcontractor as a "broker"; a second bidder identified this company as a "subcontractor." Unknown to the bidders, MTA had an unwritten policy of giving 100% DBE credit for subcontractor work, but only 5% credit for brokered work. Consequently, the low bidder's bid was rejected because it failed to meet the DBE requirement. The low bidder recovered lost profits, home office overhead and bid costs. The Appellate Court upheld the award despite the lack of fraudulent intent by MTA. Kajima/Ray Wilson v. L.A. County MTA, 82 Cal.Rptr.2d 348 (Cal.App. 1999).