Gordon H. Ball, Inc. v. State ex rel. Department of Public Works

These are appeals 1 from judgments declaring that section 14402.5 of the Government Code cannot be applied to plaintiffs’ construction contracts entered into before the effective date of that statute, and denying plaintiffs’ petitions for writs of mandate by which they sought application of the statute to their contracts.

Factual Background

Actions 3 Civil 13032 and 3 Civil 13039

The numerous plaintiffs in these two appeals are individuals, partnerships and corporations engaged as contractors in the construction of state highways. Prior to November 10, 1969, they entered into contracts 2 with defendant State of California 3 for construction of portions of the state highway system. Pursuant to these contracts, and as required by section 14402 of the Government Code, 4 certain monies earned under the contracts were withheld by defendant State.

*165 On November 10, 1969, section 14402.5 of the Government Code became effective. This section provides:

*166 In early February 1970, plaintiffs in Actions 3 Civil 13032 and 3 Civil 13039 applied to the Department of Public Works to invoke the procedure set forth in section 14402.5 and requested the payment of funds then…