Gordy

Plaintiff Clint Gordy brought this action for money allegedly due him under an oral contract which provided, in addition to wages, that he would receive a payment of 1 percent of a bid price submitted by his employer, YorkChieo.

Johnson, Drake and Piper were prime contractors to eon struct a conservation center for the State of California. The prime contractors furnished a statutory bond issued by Continental Casualty Company pursuant to the provisions of sections 4200 to 4210 of the Government Code. Hickman Bros., a subcontractor, in turn gave a subcontract to York-Chieo which supplied a bond furnished by United Pacific Insurance Company (incorrectly sued herein as United Pacific Insurance Group), defendant herein.

York-Chico became a bankrupt when its subcontract was 80 to 85 percent completed and the remainder of its contract was performed by other parties who received payment from defendant. Gordy was paid his wages only by defendant and sues for the percentage payment.

The statutory bond furnished by the prime contractor is both a performance and labor and material bond, and it inures to the benefit of all persons entitled to file claims or their assigns. (Gov. Code,…