Pacific Carpets v. Shanghai Commercial Bank CA4/3

STATEMENT OF FACTS

I.

THE PARTIES AND UNDERLYING DISPUTE

The LLC is a subcontractor that performed work on an apartment construction project. The Bank was the construction lender on the project. After a payment dispute arose between the LLC and the property owner, the LLC recorded a mechanic’s lien against the property and served a bonded stop payment notice on the Bank.

II.

THE COMPLAINT AND CROSS-COMPLAINT

The LLC later filed a complaint against the Bank and four other entities, which are not parties to this appeal. The complaint alleged the four entity defendants owed over $500,000 to the LLC for its work, labor, and materials. The complaint also alleged a single cause of action against the Bank to enforce the bonded stop payment notice. In response, one of the entity defendants, 2525 Main Apartment, LP (2525 Main), filed a cross-complaint and asserted causes of action for: (1) breach of contract; and (2) recovery of compensation paid to an unlicensed

2 contractor.

III.

THE MOTION FOR SUMMARY JUDGMENT AND THE LAMBERT MOTION

In 2023, the four entity defendants moved for summary judgment or, in the alternative, summary adjudication. The Bank did not file the motion,…