E. F. Brady Co. v. M. H. Golden Co.
Opinion
Opinion
Haller, J.
The State of California (state) selected M. H. Golden Company (Golden) as the general contractor on a public construction project after a competitive bid process. Golden subsequently learned the lath and plaster subcontractor listed on its bid would be unable to perform. It then entered into negotiations with another subcontractor, E. F. Brady Company, Inc. (Brady). Although Golden initially notified the state it intended to use Brady, Golden never asked the state to approve Brady and eventually selected different entities to perform the subcontract job.
Brady sued Golden, asserting violation of the Subletting and Subcontracting Fair Practices Act (Act). (Pub. Contract Code, § 4100 et seq.) Brady alleged Golden violated the Act by failing to obtain the state’s approval to substitute another subcontractor for Brady. The court, sitting without a jury, found Golden violated the Act and awarded Brady $161,774.41.
Golden appeals. We determine Brady was not a protected subcontractor under the Act and therefore Brady did not have a right to recover damages. Accordingly, we reverse the judgment. This determination renders it unnecessary to reach Golden’s alternate contentions…