Violante v. Communities Southwest Development & Construction Co.

138 Cal. App. 4th 972, 2006 Cal. Daily Op. Serv. 3209, 2006 Daily Journal DAR 4585, 41 Cal. Rptr. 3d 673, 2006 Cal. App. LEXIS 560
CourtCalifornia Court of Appeal
DecidedMarch 16, 2006
DocketNo. E037333
StatusPublished
Cited by9 cases

This text of 138 Cal. App. 4th 972 (Violante v. Communities Southwest Development & Construction Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Violante v. Communities Southwest Development & Construction Co., 138 Cal. App. 4th 972, 2006 Cal. Daily Op. Serv. 3209, 2006 Daily Journal DAR 4585, 41 Cal. Rptr. 3d 673, 2006 Cal. App. LEXIS 560 (Cal. Ct. App. 2006).

Opinion

Opinion

GAUT, J.

1. Introduction

We hold that a subcontractor’s employee on a public works project cannot sue the prime or general contractor on theories of statutory or contractual liability for the nonpayment of prevailing wages by the subcontractor, the employee’s direct employer. Although both sides on this issue have advanced compelling public policy arguments in favor of their respective positions, we deem those more appropriate for legislative rather than judicial consideration. (California Teachers Assn. v. Governing Bd. of Rialto Unified School Dist. (1997) 14 Cal.4th 627, 632 [59 Cal.Rptr.2d 671, 927 P.2d 1175]; Crusader Insurance Co. v. Scottsdale Insurance Co. (1997) 54 Cal.App.4th 121, 134 [62 Cal.Rptr.2d 620].) Our review of the statutory scheme governing prevailing wages finds no private right of action for enforcement by a subcontractor’s employee against other parties than the subcontractor. In addition, we reject plaintiffs’ theories of recovery based on principles of third party breach of contract and unfair competition.

Plaintiffs are construction workers seeking to launch a class action against defendants for recovery of prevailing wages. Plaintiffs appeal from a judgment after the trial court sustained without leave to amend the demurrers of [976]*976defendants Communities Southwest Development and Construction Company and Chapman Heights (collectively Chapman Heights), and Yucaipa Valley Acres (Yucaipa Valley).

2. Factual and Procedural Background

For purposes of appeal, we take as true the facts asserted in the first amended complaint. (Hensler v. City of Glendale (1994) 8 Cal.4th 1, 8, fn. 3 [32 Cal.Rptr.2d 244, 876 P.2d 1043].)

Plaintiffs are three individuals formerly employed as construction workers on the Chapman Heights project, a master planned community of 2,000 residences, including many public improvements, costing more than $65 million.

Defendant Chapman Heights is a limited partnership and a contractor. Communities Southwest Development and Construction Company is a real estate developer and the general partner of Chapman Heights. Yucaipa Valley is also a limited partnership and a real estate developer and contractor. Other defendants, not parties to this appeal, are SJ. Burkhardt, Inc., a contractor, and Raymond David Paci, an individual doing business as Pacific Structures, a contractor. (According to defendants, Burkhardt employed Pacific Structures, plaintiffs’ immediate employer.)

As part of the development and construction of the project, Chapman Heights, Yucaipa Valley, and the City of Yucaipa entered into a reimbursement credit agreement. Chapman Heights and the City of Yucaipa’s Community Facilities District entered into a community facilities district agreement.

Plaintiffs allege they, and hundreds or thousands of other workers, were paid less than prevailing wages as required by Labor Code section 1770 et seq.1 for public works projects. Plaintiffs assert three causes of action against these defendants: violation of section 1774; breach of contract; and unfair business practices. The trial court sustained defendants’ demurrers without leave to amend. Two additional causes of action remain against other defendants for conversion and recovery under payment bonds.

3. Amicus Curiae Briefs and Requests for Judicial Notice

We have accepted amicus curiae briefs supporting plaintiffs’ position from the Northern California Electrical Construction Industry Labor-Management Cooperative Trust and Work Preservation Fund and the Northern California Basic Crafts Alliance.

[977]*977Plaintiffs filed a request for judicial notice asking this court to take notice of legislative history for sections 1772 and 1774, dating from 1931 to 1941, and an opinion letter, dated January 6, 2005, from the Department of Industrial Relations. These items were not part of the lower court’s record. (Evid. Code, § 452, subd. (c).)

Plaintiffs’ request suffers from some of the deficiencies observed in Kaufman & Broad Communities, Inc. v. Performance Plastering, Inc. (2005) 133 Cal.App.4th 26, 29 [34 Cal.Rptr.3d 520] (Kaufman): “The various documents are not segregated and no attempt is made in a memorandum of points and authorities to justify each request for judicial notice.” Plaintiffs have submitted as part of the legislative history a Senate Final History (1931); a Legislative Digest (1931); Statutes of California (1931); a report from the Department of Industrial Relations (1933-1937); a proposed Labor Code (1936); an Assembly Final History (1937); a Legislative Digest (1937); Statutes of California (1937); a Summary Digest (1937); and a Report of the California Code Commission (1941). Also submitted as part of the legislative history are some 1931 articles of the “Labor Clarion,” identified as the official journal of the San Francisco Labor Council, and some pages from an undated article about prevailing wage laws published by the University of Pennsylvania.

As enumerated in Kaufman, supra, 133 Cal.App.4th at pages 31-39, some of these categories of documents may qualify as legislative history; some obviously do not. The proposed and find versions of statutes and the final histories, digests, and commission reports constitute legislative history. (Kaufman, supra, at pp. 31-36.) But the journal and the University of Pennsylvania articles are clearly not legislative materials. (Kaufman, supra, at pp. 37-38.)

Defendants oppose plaintiffs’ request. We agree that neither the legislative materials nor the department’s opinion letter are demonstrably relevant or material to the issue on appeal because, as discussed below, we do not find the subject statutes to be ambiguous. (Kaufman, supra, 133 Cal.App.4th at p. 30; Helene Curtis, Inc. v. Los Angeles County Assessment Appeals Board (2004) 121 Cal.App.4th 29, 36, fn. 7 [16 Cal.Rptr.3d 658]; People ex rel. Lockyer v. Shamrock Foods Co. (2000) 24 Cal.4th 415, 422, fn. 2 [101 Cal.Rptr.2d 200, 11 P.3d 956].) The legislative materials and the opinion letter do not support plaintiffs’ position that a prime contractor is liable by statute to a worker it did not employ directly. The opinion letter was generated after entry of judgment in this case and was never considered by the trial court. We deny plaintiffs’ request for judicial notice.

[978]*978Northern California Basic Crafts Alliance filed a second request for judicial notice asking the court to take notice of three labor master agreements, also not part of the lower court’s record. We deny the latter request: “Reviewing courts generally do not take judicial notice of evidence not presented to the trial court. Rather, normally ‘when reviewing the correctness of a trial court’s judgment, an appellate court will consider only matters which were part of the record at the time the judgment was entered.’ (Reserve Insurance Co. v. Pisciotta (1982) 30 Cal.3d 800, 813 [180 Cal.Rptr. 628, 640 P.2d 764

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138 Cal. App. 4th 972, 2006 Cal. Daily Op. Serv. 3209, 2006 Daily Journal DAR 4585, 41 Cal. Rptr. 3d 673, 2006 Cal. App. LEXIS 560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/violante-v-communities-southwest-development-construction-co-calctapp-2006.