Golden Gate Mechanical Contractors Association, and v. Seaboard Surety Company, And

This case involves cross appeals from a judgment in the sum of $2,000.00 entered in the District Court in favor of Golden Gate Mechanical Contractors Association, (hereafter Golden Gate) against Seaboard Surety Company, (hereafter Seaboard) upon a surety bond. Seaboard appeals on the issue of liability, and Golden Gate appeals on the issue of damages.

Mechanical Contractors Association of Northern California (hereafter Meehan ical Contractors) had sued Golden Gate in the state court. In that action, Mechanical Contractors obtained a temporary injunction against Golden Gate and Seaboard, defendant herein, issued the required surety bond.

The Seaboard Appeal

The jurisdiction of the district court was based upon diversity of citizenship and California law controls.

Recovery on the surety bond must be had in a new action and not in an action in which the bond was posted.

Under California Code of Civil Procedure Section 529 the sureties on an injunction bond agree to pay the party enjoined damages sustained by reason of the injunction, not exceeding the amount of the bond, if the court finally decides that the applicant was not entitled to the injunction. As the court stated in…