American Subcontractors Association

	ASA North Texas Chapter 2100 N Hwy 360, #1101 Grand Prairie, TX 75050 (817) 640-8275 (817) 695-7769 FAX lswhite@asa-northtexas.org Upcoming Events! (Click below to learn more or visit our calendar for a full list of events!) April 12, 2010 - NAWIC 17th Annual Golf Classic - Bear Creek Golf Club 2009-10 Seminars 2009-10 Meetings NEWS RELEASE FROM ASA NATIONAL: ASA Victory Before Texas Supreme Court Preserves Subcontractors’ Remedies for Nonpayment ALEXANDRIA, Va. — The Texas Supreme Court handed down a decision on July 3, 2009, agreeing with the American Subcontractors Association Inc.’s position that Texas law affords subcontractors on public work more than one option for recovering funds when they are not paid for their completed work. ASA filed two amicus curiae, or “friend of the court,” briefs, in Dealers Electrical Supply Co. v. Scoggins, asking the Texas Supreme Court to overturn an appeals court decision that said subcontractors on public work could not make claims under Texas’ Trust Funds Act because the only remedy for nonpayment is a claim against a statutorily required (McGregor Act) payment bond. In its briefs, ASA argued that the two remedies were not exclusive, and the high court agreed, stating that “Interpreting the McGregor Act to provide an exclusive remedy for unpaid claims would contravene, rather than further, the purpose of both the McGregor Act and the Trust Fund Act.” In the underlying case, Dealers Electrical argued that it could use the Trust Funds Act to recover $80,000 it was owed for electrical parts after missing payment bond filing deadlines. A lower court sided with Dealers Electrical, but the 13th Court of Appeals consequently denied Dealers' claim on the grounds that the statutorily required McGregor Act payment bond provided on the project was Dealers' exclusive remedy, and that the Trust Funds Act did not apply when a corporate surety bond was in place. To ensure that subcontractors would continue to benefit from the remedies for nonpayment that Texas law affords, ASA filed two briefs in support of the supplier. In its May 13, 2008, amicus curiae brief, ASA pointed out that the appeals court misread the McGregor Act as excluding other remedies for nonpayment. The McGregor Act requires payment bonds on state and local public work in Texas. ASA also pointed out that the appeals court erred in citing language from an earlier version of the Trust Funds Act that was no longer in effect when the supplier made its claim. The Trust Funds Act controls the use of construction funds earmarked to pay suppliers and subcontractors. “[The appeals court’s] holdings are incorrect and will have harmful consequences not only for the construction industry but also for public entities, which will face higher construction costs as a result of their suppliers’ decreased ability to compel payment for materials actually delivered, used, and incorporated into public projects,” ASA said in its brief. In its second brief, jointly filed with the Houston Hispanic Chamber of Commerce, ASA argued that “courts…should not lightly interpret one statutory claim to override another.” Furthermore, the brief stated, “the McGregor Act payment bond complements [other remedies], but it is not – and was never designed to be – an adequate substitute for them.” “ASA and its Subcontractors Legal Defense Fund have won again,” said 2009-10 ASA President Darlene East, Holes Incorporated, Houston, Texas. “The Texas Supreme Court heard the voice of subcontractors and ruled to protect their rights for payment for work performed. The earlier ruling by the lower court would have restricted our ability to recover payment. The Supreme Court’s decision reversed that ruling, leaving intact current payment protections.” ASA’s Subcontractors Legal Defense Fund, which supports critical legal activities and protects the common interests of all subcontractors, funded ASA’s activities relating to this case. Funded solely by contributions, SLDF funds are invested in precedent-setting cases across the country. To learn more about this case and the SLDF, visit www.sldf.net. NEWS RELEASE FROM ASA NATIONAL: Construction Subcontractors Applaud Secretary Napolitano for Withdrawal of Troubled No-Match Rule ALEXANDRIA, Va. — The American Subcontractors Association Inc. applauded U.S. Department of Homeland Security Secretary Janet Napolitano for announcing on July 8, 2009, that the Obama administration plans to rescind the “no-match” rule. “In light of the no-match rule’s troubled history of court challenges, unanswered questions, and re-writes, the decision to rescind the no-match rule is correct,” said 2009-10 ASA President Darlene East, president of Holes Incorporated in Houston, Texas. “Ultimately, the no-match rule would have shifted a large portion of the responsibility for making sure individuals are legal to work in the United States from the government to private employers and employees. Hopefully, Congress and the Obama administration will see the withdrawal of the no-match rule as an opportunity to re-focus on comprehensive reform of our national immigration policy.” Previously, DHS had denied that the no-match rule represented a shift in policy, but ASA pointed out that the rule would have replaced the current system of verifying documents and completing I-9 forms with a series of steps involving new communications and requirements for employers and employees, including: Employers checking for clerical errors after receiving a no-match notice, and confirming any clerical corrections with the Social Security Administration or DHS within 30 calendar days. Employers sending employees who were the subject of a no-match letter to the local SSA office and then following up with DHS or SSA to ensure a match if the problem was not caused by a clerical error. Employers would have to maintain records of such verifications. Employees completing a new I-9 with a new SSN and a photo ID within 93 calendar days if a “no-match” was not resolved. Employers would have to terminate employees if this step did not resolve the no-match. ASA objected to the no-match rule’s new paperwork burdens and the costs of compliance in comments filed on April 25, 2008. Texas Lien & Bond Claims Handbook - 5th Edition Endorsed by the Dallas Bar Association and American Subcontractors Association North Texas Chapter 5th Edition of the Texas Lien & Bond Claims Handbook is now available. The revised Texas Lien & Bond Claims Handbook has the advantage of legal commentary, index tabs, and the new forms for filing. The handbook is a "user friendly", three-ring binder. In addition, the lien filing forms are available on CD (Word , Wordperfect & Rich Text Format). This is an essential and valuable tool for all subcontractors and suppliers. Handbooks are available through the ASA-North Texas Chapter Office. Click here for order form! Mission Statement ASA North Texas is THE ADVOCATE for the subcontractor & supplier community; promoting fair business practices through legislative influence and providing professional education and networking opportunities throughout the construction industry. What is ASA? A unified, effective body working to improve the economic well-being of subcontractors/suppliers and alleviate problems affecting the Construction Industry. A channel for the open exchange of information and viewpoints not only between subcontractor and supplier members, but also between subcontractors and general contractors, financial institutions, legislators, architects and engineers, and the vast array of government authorities who influence construction projects in the North Texas area.