Golden State v. Eastern Municipal Water Dist.

BACKGROUND

From the pleadings we discern the following facts:

EMWD hired SJB as general contractor on “Specification No. 934W, Nuevo

Road/I-215 Water Transmission Pipeline Project, Perris California” (the Project). On

April 26, 2006, SJB entered into a subcontract agreement with GSB to perform the

tunneling portion of the project. For these services, SJB originally agreed to pay GSB

$565,150. After GSB agreed to provide additional services, SJB agreed to pay an

additional $27,912.20, for a total project price of $593,062.20 On April 18, 2006,

Safeco executed a payment bond for the Project. GSB completed its portion of the work

on the Project in September 2006.

Prior to completion of the Project, there were three cessations of labor which

exceeded 30 days: the first occurred between November 11, 2006, and December 17,

2006; the second occurred between April 4, 2007 and May 20, 2007, and the third

occurred between May 20, 2007, and October 4, 2007. The overall Project was

completed in 2008. GSB alleged that it filed a stop notice with EMWD on January 2,

2008, in the amount of $577,038.37.1 On March 24, 2008, SJB informed Safeco by letter

1 The exhibits included in…