W. F. Hayward Co. v. TransAmerica Insurance

In this case, we hold that a complete work stoppage on a public work of improvement for 30 days constitutes a “cessation” of labor and a “completion” of the project. (Civ. Code, § 3086.) The cessation of labor on or completion of the project commences the period during which stop notices must be filed under California’s lien laws. (§ 3184.) Here, a subcontractor’s failure to file its complaint within six months of the expiration of the period in which to file stop notices bars this suit against the surety on a contractor’s payment bond. (§ 3249.) Accordingly, we affirm the judgment.

Facts

Cates Construction, Inc. (Cates), contracted on October 25, 1988, with the County of Los Angeles (County) to construct the Lost Hills sheriffs station. Cates acted as the “original contractor” on the project within the meaning of section 3095. Appellant, W. F. Hayward Co., contracted on November 23, 1988, with Cates to provide certain labor and materials on the project. Appellant was thus a subcontractor as defined in section 3104.

As required by section 3247, Cates obtained a payment bond issued by respondent, Transamerica Insurance Company. Construction on the project commenced but…