City of Chino v. Jackson
Opinion
Opinion
Hollenhorst, J.
On July 30, 1998, the trial court, sitting as a municipal court, entered a judgment thát was appealed to the appellate division. On October 20, 2000, the appellate division rendered an opinion after rehearing which it certified for publication. On November 2, 2000, we ordered the case transferred to this court pursuant to California Rules of Court (Rules), rules 62(a) and (b). Subsequently, all issues except one were settled between the parties. We now consider the sole remaining issue.
The Underlying Case
Jackson Land Company (Jackson), a developer, built a subdivision in the City of Chino (the City). In order to do so, it entered into certain subdivision agreements with the City in which Jackson agreed to construct certain public improvements in the subdivision. To guarantee its work, Jackson obtained performance and warranty bonds from Developer’s Insurance Company (DICO). In order to obtain the bonds, Jackson and others entered into two indemnity agreements with DICO.
In 1995, the City filed suit against Jackson and DICO, alleging that Jackson had failed to correct certain deficiencies in the improvements, and that DICO was the responsible surety. At trial, the…