Grade-Way Construction Co. v. Golden Eagle Insurance

Golden Eagle Insurance Company (Golden Eagle) appeals from final judgments entered in favor of respondent Grade-Way Construction Company (Grade-Way) in two consolidated actions that Grade-Way brought against Golden Eagle as surety on certain mechanic’s lien release bonds and stop notice release bonds (the Release Bonds). Golden Eagle contends that, because the Release Bonds were not bonds “given in an action or proceeding,” the trial court erred in enforcing them through the summary procedure of Code of Civil Procedure section 996.440. Alternatively, Golden Eagle argues that, even if the summary procedure applies, the trial court improperly granted summary judgment. We reject both of these contentions; therefore, we affirm.

Factual and Procedural Background

From October 1988 to June 1989, Grade-Way was a grading subcontractor on two residential subdivision construction projects in Alameda County. It furnished labor, materials, services, and equipment pursuant to its contract with J. L. Construction Company (JL), the prime general contractor and developer on the projects. Because it did not receive payment for a substantial part of its work on the projects, Grade-Way…