All Temperatures Controlled, Inc., Issue No. 1

December  2000

The Contractors Critic
All Temperatures Conrolled, Inc
Reporting on Safety, Productivity, and Honesty in the Construction Industry.

Swamped in Liens and Litigation

Acquiring Liens Totaling Over $1.7 Million

Liens are an unnecessary evil in the construction industry. Many construction customers know how maddening it is to try and obtain bank financing where there is some claim or lien, no matter how frivolous, against your property. That is why it is important for construction customers to be concerned about whether a contractor is likely to file liens against its customers, rather than negotiate a solution. A lien against your property by a contractor is as effective a claim against your equity as a bank’s mortgage, according to the Engineering News Report (June 26, 2000, pg. 123). Liens are especially aggravating for a construction customer, because their property is burdened, over a dispute between two contractors, and does not involve any wrongdoing by the owner.

What is even worse is that All Temperatures Controlled would go on to sue its own customers, in efforts to collect these liens. Some of these cases are further described in other articles in this brochure, for instance the case of All Temperatures Controlled V Company of the West and TCW Realty Fund.

All Temperatures response to the list of almost $2 Million of its liens was to argue that state law allows the filing of liens. All Temperatures did not offer any defense regarding at least five of the liens listed below. All Temperatures failed to provide any documentation to support their claims or to demonstrate that All Temperatures attempted to settle the disputes without resorting to liens and/or courtsuits.

Sued for Unfair Business Practices

+ ATC’s trades association failed to recruit its appren tices from the geographic areas designated in its own apprenticeship standards. In fact, ATC’s trades association "recruited" existing journeyman employees of its members as apprentices rather than recruiting trainees into the industry, the way that apprentices are supposed to be recruited. This scheme allowed journeymen to be improperly paid as apprentices, according to the court complaint.

+ ATC’s association has used unapproved local educational agencies to provide off the job training.

+ ATC’s association has failed to provide a curriculum that would allow apprentices to progressively increase their skill and experience in the trade and has failed to produce anything other than a negligible quantity of journeymen who successfully completed their training.

+ ATC’s association has provided substandard training to its apprentices. The program lacks shop facilities and sufficient equipment to competently provide instruction to apprentices.

The complaint charged that these practices constituted unfair competition and demanded that ATC and the others be required to pay restitution and lost wages to the workers who were underpaid. The complaint also asked the court to issue an injunction against ATC and others to bar them from hiring apprentices who have not received adequate instruction and to refrain from unlawful conduct as was alleged.

In February 1999, the Court ruled against ATC’s association on several grounds and ruled that the allegations sufficiently stated a cause of action against the defendants. The Judge also ruled that some of the allegations should be pursued before the California Apprenticeship Council. All Temperatures response was that others, besides All Temperatures were sued in this litigation. All Temperatures claimed that the charges were false, although the company did not offer any written verification, such as a judgement or administrative ruling in All Temperatures favor.

Workers claim Exposure to Toxic Substances, All temperatures Controlled sued

Carol Smith, Anna Salguero, Yvonne Melton and Laura Bethune were working on the second floor, in the Pavilion Plaza of the Northridge Hospital Medical Center. On that fateful day, All Temperatures Controlled was working on the hospital’s air conditioning system and something went wrong. There were numerous evacuations and emergency room visits, according to the complaint, because of toxic fumes within the hospital.

Their suit charges that All Temperatures Controlled was "negligently, carelessly, recklessly ... responsible for the events ... All Temperatures.... knew or should have known of the potential dangers of the removal of the air conditioning facility ... the air conditioning system within the Pavilion Plaza (was) render(ed) ... defective dangerous, and unsafe… And as a direct and legal result, caused the injuries." All Temperatures contends that others were sued in this case besides All Temperatures. All Temperatures argues that they were not at fault. But again, All Temperatures failed to provide any court documentation clearing them in this matter.