In a case that I’m frankly surprised I don’t see more of, the 2nd District Court of Appeal of California examined an indemnity claim by a subcontractor against a general contractor and public entity who mistakenly believed that a construction project did not require the payment of prevailing wages.

The Nabors Case
In Nabors Corporate Services, Inc. v. City of Long Beach, 108 Cal.App 540 (2025), subcontractor Nabors Corporate Services, Inc. sued general contractor Tidelands Oil Production Company and the City of Long Beach after it was found liable in a class action lawsuit for failing to pay prevailing wages to its employees. Nabors’ contract with Tidelands did not require the payment of prevailing wages and neither Tidelands nor the City believed that the project, which involved “oil well plug and abandonment” work, required the payment of prevailing wages.