Azusa Western, Inc. v. City of West Covina

The City of West Covina, defendant and appellant here, awarded a bid to L. C. Construction Co., Inc. for street improvements under the Improvement Act of 1911 (Sts. & Hy. Code, § 5000 et seq.).

United Bonding Insurance Company, a qualified corporate surety, executed the statutory (§ 5290) labor and materialmen’s bond. Thereafter, L. C.' Construction Co., Inc. commenced work on the project. Plaintiff and respondent Azusa Western, Inc. furnished labor and material to the contractor.

Not having been paid, plaintiff delivered a verified notice to withhold (§ 5292) making a claim for unpaid sums due it from L. C. Construction Co., Inc. on account of the labor and material furnished.

Thereafter, the same bonding company as surety for L. C. Construction Co., Inc., and pursuant to permission of defendant city, filed a release bond (§ 5295) with the city, and the latter delivered monies withheld by it to the contractor. .

This action was thereafter filed. Plaintiff was unable to collect further sums from the construction company and the surety itself underwent a liquidation proceeding. The trial court entered judgment for the plaintiff in the sum of $17,218.94, the agreed…