Contracting by State AgenciesClaims and Disputes

Section § 19100

Explanation

You don't need to file a formal government claim to start a lawsuit or arbitration over a contract with the state. However, you must begin your legal action within six months of either getting the agency's final written decision on the contract claim or when the issue first occurred, if there's no claim process in the contract. This rule doesn't apply to claims that are covered by a specific other section mentioned in the law.

(a)CA Public Contract Code § 19100(a) Presentation of a claim pursuant to Part 3 (commencing with Section 900) of Division 3.6 of Title 1 of the Government Code is not required to commence a legal action or arbitration proceeding for money or damages on a contract with the state, but any action or proceeding shall be commenced not later than six months after either of the following:
(1)CA Public Contract Code § 19100(a)(1) The contracting agency’s final written decision under contract claim provisions.
(2)CA Public Contract Code § 19100(a)(2) The accrual of the cause of action, if there are no contract claim provisions.
(b)CA Public Contract Code § 19100(b)  This section shall not apply to a claim that is subject to the provisions of Section 10240.1.
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Section § 19102

Explanation

This law allows the second lowest bidder in a public works contract to take legal action if their bid was not accepted because the winning bidder broke certain labor or unemployment laws, and this resulted in damages to the second lowest bidder. If the first bidder is convicted of breaking these laws, it's assumed they won by keeping costs unnaturally low due to these violations.

If the second lowest bidder takes legal action and wins, the court might also make the losing party pay for the legal costs. To proceed with such action, the second lowest bidder must not have violated the same laws in the past year without correction. How an employee's status is determined depends on specific laws within the Labor and Unemployment Insurance Code.

(a)Copy CA Public Contract Code § 19102(a)
(1)Copy CA Public Contract Code § 19102(a)(1) The second lowest bidder, and any person, firm, association, trust, partnership, labor organization, corporation, or other legal entity which has, prior to the letting of the bids on the public works project in question, entered into a contract with the second lowest bidder, may bring an action in superior court if that entity suffers damages as a result of the bid of the second lowest bidder for any contract subject to this part not being accepted due to the successful bidder’s violation, as evidenced by the conviction of the successful bidder therefor, of any provision of Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both.
(2)CA Public Contract Code § 19102(a)(2) There shall be a rebuttable presumption that a successful bidder who has been convicted of a violation of any provision of Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or of both, was awarded the bid because that successful bidder was able to lower the bid due to this violation or these violations occurring on the contract for public work awarded by the public agency.
(b)CA Public Contract Code § 19102(b) In an action brought pursuant to this section, the court may award costs and reasonable attorney’s fees, in an amount to be determined in the court’s discretion, to the prevailing party.
(c)CA Public Contract Code § 19102(c) For purposes of an action brought pursuant to this section:
(1)CA Public Contract Code § 19102(c)(1) Employee status shall be determined pursuant to Division 4 (commencing with Section 3200) of the Labor Code with respect to alleged violations of that division, pursuant to the Unemployment Insurance Code with respect to alleged violations of that code, or pursuant to Section 2750. 5 of the Labor Code with respect to alleged violations of either Division 4 (commencing with Section 3200) or of the Unemployment Insurance Code, or of both.
(2)CA Public Contract Code § 19102(c)(2) “Second lowest bidder” means the second lowest qualified bidder deemed responsive by the public agency awarding the contract for public work.
(3)CA Public Contract Code § 19102(c)(3) The “second lowest bidder” and the “successful bidder” may include any person, firm, association, corporation, or other legal entity.
(d)CA Public Contract Code § 19102(d) A second lowest bidder who has been convicted of a violation of any provision of Division 4 (commencing with Section 3200) of the Labor Code or of the Unemployment Insurance Code, or both, within one year prior to filing the bid for public work, and who has failed to take affirmative steps to correct that violation or those violations, is prohibited from taking any action authorized by this section.
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