Varela, Lee, Metz & Guarino Secures Summary Judgement for Construction Client Hensel Phelps

Superior Court of California, County of Riverside dismisses AVL Test Systems' claims

RIVERSIDE, Calif., Jan. 31, 2025 /PRNewswire/ -- A team of attorneys from Varela, Lee, Metz & Guarino, LLP (VLMG) won a summary judgment motion on Jan. 13, 2025 for a complete dismissal of claims in a case in which the firm represented Hensel Phelps Construction Co.

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The action arose from the Southern California Consolidation Project in Riverside, Calif., for which Hensel Phelps served as the general contractor, and AVL Test Systems, Inc. served as one of its subcontractors. The Department of General Services, Real Estate Division served as the project owner on behalf of the California Air Resources Board.

Although AVL, the plaintiff in the case, acknowledged that it did not hold a California contractor's license for periods of work on the project, it contended that its work did not require a contractor's license. AVL also claimed our client, Hensel Phelps, knowing that its subcontractor did not hold a contractor's license, inaccurately certified in payment applications to the owner that the subcontractor's work had been performed in compliance with the contract documents and applicable licensure law. AVL also alleged that the owner paid Hensel Phelps' payment applications and requests for funds that AVL claimed were due.

VLMG on behalf of our client disputed these licensure, certification, and payment allegations and contended that the AVL's work required a license and that the subcontractor was not due payment.

On cross-motions for summary judgment, the Superior Court of California, County of Riverside, sided with our client. The court then entered a ruling against AVL, finding that AVL's work on the project required a California contractor's license.

About Varela, Lee, Metz & Guarino: Varela, Lee, Metz & Guarino is a leading construction litigation boutique that represents clients spanning the breadth of the construction industry, including owners, developers, contractors, subcontractors, design professionals, sureties, and public agencies. VLMG's attorneys have handled litigation and arbitration across the United States and around the world involving a diverse spectrum of construction projects, including civil, industrial, power, commercial, and military/government projects, among many others.

SOURCE Varela, Lee, Metz & Guarino