Opinion
S231549
05-14-2018
UNITED RIGGERS & ERECTORS, INC. v. COAST IRON & STEEL CO.
B258860 Second Appellate District, Div. 1
Opinion filed: Judgment affirmed in full
The statutory right to prompt payment United Riggers asserts is remedial, granted by one of several laws that sought to ensure contractors are not at the mercy of those upon whom they depend for payment. In light of that remedial purpose, we construe the right broadly and exceptions to its application narrowly. Our analysis is informed by the text, structure, and previous interpretations of those laws establishing a similar right, as well as the relevant legislative history. Taking all these factors into account, we conclude that timely payment may be excused only when the payor has a good faith basis for contesting the payee's right to receive the specific monies that are withheld. Coast Iron argues instead that the Legislature chose to permit withholding of monies both sides agree are due when any conceivable dispute exists between the parties, because the statute fails to include explicit limits on the circumstances in which monies can be withheld. This construction of the statute is not built on the most secure foundation, given the frequency with which the Legislature has imposed explicit limits in related contexts, the statute's specific remedial purpose, and evidence that the omission here was not a purposeful departure from the Legislature's general approach. We affirm the judgment of the Court of Appeal and remand for further proceedings consistent with this opinion.
Majority Opinion by Cuéllar, J.
-- joined by Cantil-Sakauye, C. J., Chin, Corrigan, Liu, Kruger, and Bamattre-Manoukian*, JJ.
* Associate Justice of the Court of Appeal, Sixth Appellate District, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.