Winick Corp. v. County Sanitation District No. 2

Respondent and defendant, County Sanitation District No. 2 of Los Angeles County (District) was granted summary judgment (Code Civ. Proc., § 437c) against plaintiff and appellant Winick Corporation (Winick) on the ground that plaintiff’s complaint presented no triable issues of fact and had no merit. This appeal is from that portion of the summary judgment which granted the District’s request for sanctions against Winick in the form of attorney’s fees pursuant to Code of Civil Procedure sections 128.5 and 437c, subdivision (i). We affirm.

Facts

The District is a public agency organized and operating pursuant to Health and Safety Code section 4700 et seq. The underlying litigation involves the District entering into a construction contract for “effluent filters” with Hydro-Mechanical Co. (Hydro) for work at its San Jose Creek Plant. Hydro obtained a performance bond for materialmen and laborers from Safeco Insurance Company of America (Safeco). Hydro entered into a subcontract with Winick for labor and materials for the electrical portion of the project.

On October 26, 1979, Winick filed a stop notice on the District pursuant to Civil Code section 3179. The stop notice…