Tesco Controls, Inc. v. Monterey Mechanical Co.

Plaintiff sought to recover money owed it on a contract under which it supplied electrical equipment for a public works project. Defendants claimed plaintiff was barred from recovering because it had waived its mechanic’s lien rights up through a date when the funds should have been paid. By grant of summary adjudication, the trial court determined plaintiff’s conditional waiver and release of its mechanic’s lien rights under Civil Code section 3262, subdivision (d)(1), released lien rights only to the extent plaintiff had received payment and not up through the date stated on the release.

At trial on plaintiff’s remaining causes of action, the court granted judgment in favor of plaintiff on its claim for breach of a joint check agreement and also awarded statutory penalties. The trial court also dismissed a cross-complaint filed by defendants.

Except to reverse and remand the award of statutory penalties, we affirm the judgment in all respects, but do so on different grounds than those relied upon by the trial court.

UNDISPUTED FACTS AT SUMMARY ADJUDICATION MOTION

In February 1998, defendant City of Chico (the City) contracted with defendant Monterey Mechanical…