Progress Glass Co. v. American Insurance

Plaintiff Progress Glass Company, a corporation, furnished labor and materials as a subcontractor in the construction of a motel complex. A balance due it from the original contractor was not paid. Plaintiff commenced this action to recover the balance from de fendant American Insurance Company as the surety on a labor and materials payment bond given by the original contractor as the principal. The trial court granted defendant’s motion for summary judgment on the ground that the action was barred by a provision in the bond requiring that the action be commenced within a specified one-year period. Plaintiff appeals from the order in which the motion was granted, but which also operates as a summary judgment dismissing the action. We reverse it.

Facts and Procedural Sequence

The parties agree that there is no material dispute concerning the facts, which may therefore be summarized from the full record. It supports the following recitals:

The motel complex was built in Contra Costa County by Ralph E. Carlsen Construction Company, a corporation (Carlsen), the original contractor under a written contract with the owners of the complex. The owners were a partnership, a…