Yamanishi

Defendant Collishaw Sprinkler Co., Inc., contracted with the Redevelopment Agency of the City of Seaside to construct a public park on the agency’s property. Collishaw Sprinkler Co., Inc., then entered into a subcontract with defendant Bleily & Collishaw, Inc., wherein the latter agreed to undertake certain portions of the work including landscaping, paving and grading. Bleily & Collishaw, Inc. in turn entered into “lower tier” subcontracts with (1) plaintiff Henry Yamanishi for the landscaping of the project, and (2) with Monterey Peninsula Paving & Grading, Inc. for the paving and grading. The subcontracts were prepared by Bleily & Collishaw, Inc. on a form it customarily used. Defendant United Pacific Insurance Company as surety executed a contractor’s performance bond which, as relevant here, provided that if Bleily & Collishaw, Inc. “shall fail to pay for . . . work contracted to be done” by subcontractors, that “it will pay for the same . . . .” The bond also provided that “In case suit is brought upon this bond the said surety will pay a reasonable attorney’s fee to be fixed by the court.”

Henry Yamanishi and Monterey Peninsula Paving & Grading, Inc. fully…