The “Team Jacobs” conspiracy

Posted on October 25, 2010


A number of stories exist about an entity known as Jacobs Facilities, Incorporated, an entity whose contractors license expired in late 2008 and who was operating in the courts doing business as “Team Jacobs” since 2006. 

Mr. Michael Paul, a former senior technical analyst with the AOC initially broke the story of “the contractor that no longer exists.” As the evidence we’ve recieved shows, the AOC directed the Attorney General to disregard business and professions code 7031 and file suit for only two years of the four years that “Team Jacobs” was doing business in the courts. Furthermore, the AOC has permitted “Jacobs Project Management” to fulfill the contract void by operation of law that was previously held by the unlicensed contractors.

This year, the AOC has budgeted about $50 million towards facilities modifications for this fiscal year, all while filing suit against the same entities for $40 million dollars for the last two fiscal years. Regardless of the AOC playing games with the name of their contractor, california law states that an entity must be licensed at all times during the performance of a contract. Both the Appellate Court and the Supreme Court of California have affirmed that a subject without a contractors license at any time during the performance of the contract experiences the harsh reality that not a dime will be paid to them for any of the work. California has one of the strongest public policies against the use of unlicensed contractors in the nation and if precedence is any guide, Michael Paul was right to file a taxpayer suit against the AOC for two reasons.

1. Leaving a substantial amount of taxpayer money on the table by filing suit for only a fraction of what is owed is not sound stewardship of scarce public funds. Neither is extending the contracts to these entities when the record shows that not only were the entities unlicensed, they’ve been grossly overcharging for their services.

2.  Lawbreakers, even if they work for the judicial branch are not above the law.

Analyze the evidence pertaining to how much the AOC spent the last two fiscal years on the unlicensed contractors that the AOC supplied to the Assembly Committee on Accountability & Administrative Review. Then add up the amounts sought in the lawsuits that the Attorney General has filed against the previously unlicensed contractors. These numbers should not be the same and yet they are. For your reading pleasure, here are a few key decisions that should underscore both cases against the unlicensed contractors as well as the taxpayer lawsuit launched by Michael Paul against the AOC.

Great West Contractors, Inc. v. WSS Ind. Constr., Inc., 162 Cal. App. 4th 581 (2008)

MW Erectors, Inc. v. Niederhauser Ornamental & Metal Works Co, Inc.36 Cal.4th 412, 427 (2005)