Tarlton & Sons v. Great American Ins. Co.

DISCUSSION

Standard of Review “In reviewing an order sustaining a demurrer, we examine the operative complaint de novo to determine whether it alleges facts sufficient to state a cause of action under any legal theory.”

3 (T.H. v. Novartis Pharmaceuticals Corp. (2017) 4 Cal.5th 145, 162.) “‘We treat the demurrer as admitting all material facts properly pleaded, but not contentions, deductions or conclusions of fact or law. [Citation.] We also consider matters which may be judicially noticed.’ [Citation.] Further, we give the complaint a reasonable interpretation, reading it as a whole and its parts in their context.” (Blank v. Kirwan (1985) 39 Cal.3d 311, 318.) Applicable Law The rights of a public works project contractor “with respect to any fund for payment of construction costs” are governed exclusively by the Civil Code. (§ 9350.) A direct contractor (also called the general or prime contractor) on public works project “involving an expenditure in excess of . . . $25,000” must give a payment bond to the public entity before starting work. (§ 9550, subd. (a).) The bond assures that funds will be available to pay subcontractors working on the project if the subcontractor is…