FORCE FRAMING, INC. v. Chinatrust Bank (USA)

Force Framing, Inc. (Force Framing), sued Chinatrust Bank (U.S.A.) (Chinatrust) for a bonded stop notice. (Civ. Code, § 3083.) The trial court granted Chinatrust’s cross-motion for summary judgment (Code Civ. Proc., § 437c), because Force Framing served the statutorily required 20-day preliminary notice (Civ. Code, § 3097) on East West Bank, not Chinatrust. Force Framing contends that the trial court erred by granting Chinatrust’s cross-motion for summary judgment because East West Bank qualified as the “reputed lender.” (Civ. Code, § 3097, subd. (a).) Various amici curiae have filed briefs in support of Force Framing’s contentions. We reverse the judgment.

FACTUAL AND PROCEDURAL HISTORY

In or around September 2006, Force Framing and 92 Magnolia, LLC (Magnolia), entered into a written contract. Magnolia owned a property in Riverside where it was constructing condominiums (the project). The contract reflected that Force Framing would provide framing labor, material, equipment and services for the project; and Magnolia would pay Force Framing $1,460,233.

At or about the time Force Framing began working on the project, Magnolia gave Force Framing a “ ‘Preliminary…