C. O. Sparks, Inc. v. Pacific Coast Paving Co.

This is an appeal from a judgment in favor of the plaintiffs and against Malven and Nicldas, a corporation, as a prime contractor, and against United Pacific Insurance Company, a corporation, as surety, under a private works contract.

On March 22,1954, Malven and Nicldas, a corporation, hereinafter referred to as “the contractor,” entered into a contract with Bramwell Construction Company, a California corporation, hereinafter referred to as “the owner,” a division of Safeways Stores, Inc., a corporation, organized under the laws of Maryland, for the construction of a store building, including certain paving of a parking lot.

Paragraph one of the contract reads as follows:

On April 5, 1954, pursuant to the contract, the contractor executed a bond as principal, with United Pacific Insurance Company, hereinafter referred to as “the surety,” in the sum of $239,376. The bond, in part, reads as follows:

On May 4, 1954, the contractor entered into a subcontract with Pacific Coast Paving Company, Inc., hereinafter referred to as “the paving company,” wherein the paving company was to do certain grading and improvements and furnish certain materials, all called for in the contract…