Westinghouse Electric Corp. v. County of Los Angeles

This is an appeal from that part of a judgment denying prejudgment interest to the assignee of a stop notice claimant (public works) and allowing the public entity to retain the liquidated damages it assessed pursuant to a contract awarded by bid.

On December 10, 1973, Sherwin Electric Service Company (Sherwin or contractor) as prime contractor, entered into a written public works construction contract with the County of Los Angeles (County). The contract, known as Security & Ballfield Lighting, Various County Parks, provides, in pertinent part, as follows:

These terms and conditions were included in the plans and specifications on which all bidders were required to base their bids for the project. There were no actual negotiations between County and Sherwin concerning them.

On December 18, 1973, Sherwin and Westinghouse Electric Supply Company (Wesco, or stop notice claimant) entered into a contract under which Wesco agreed to supply certain equipment and materials for the project and Sherwin agreed to pay for them. Wesco performed as required, pursuant to its contract with Sherwin. Sherwin duly performed pursuant to its contract with County, except that the project…