Ledbetter

Card Construction Company, Inc. (Card) appeals from a judgment of dismissal entered after demurrers to the complaint by respondents, Ledbetter & Son (Ledbetter) and San Diego Pacific Rentals (Pacific), had been sustained without leave to amend. The original complaint was brought by Card and its bonding company, Insurance Company of North America (I.N.A.).

The dispute arises out of a contract and a series of subcontracts for work performed on a state improvement project and centers upon the legal effect of certain releases executed by respondents Ledbetter and Pacific. It is also concerned with the legal effect of a previous lawsuit in which all the parties to this litigation appeared.

For purposes here, the facts are not in dispute. In March 1967, Pylon, Inc. (Pylon), as general contractor, entered into a written contract with the State of California, acting by and through the Department of Water Resources, to construct a public improvement described as the San Diego Desalted Water Transmission Facility, for a consideration of $192,240.36. In April 1967, Pylon entered into a written subcontract with plaintiff Card under which Card agreed to perform a portion of the work…