Granite Constr. Co. v. Am. Motorists Ins. Co.

A subcontractor provided the underlying base material for streets in a new subdivision and contracted with Granite Construction Company to pave these streets. After Granite finished the paving, the sub-base proved defective, damaging Granite’s work, and government inspectors refused to approve the street work. After protracted negotiations, Granite applied a seal coat to the street paving and absorbed the cost. As a result of Granite’s action, government officials granted the necessary approvals. However, no one ever paid Granite for the street paving. Both the original contractor and the subcontractor subsequently filed for bankruptcy, and the surety for the subdivision project, American Motorists Insurance Company, denied Granite’s claim. Granite was forced to bring this action against American Motorists for $45,585.45.

American Motorists appeals from the trial court’s grant of summary judgment and award of attorney fees and costs to Granite. American Motorists contends (1) Granite did not timely serve the requisite 90-day public works preliminary bond notice, and (2) Granite was not entitled to attorney fees and costs incurred prior to the institution of this action…