United States Fidelity & Guaranty Co. v. City of Los Angeles

These two actions between the same parties and involving the same issues were tried together. Pur suant to stipulation, the appeals from the two judgments in favor of the plaintiff are being taken and heard together. There is but little controversy concerning the facts which, in so far as they are material, to this decision, except as they concern findings bearing upon the good faith of defendant, are as follows: One H. V. Gentry entered into two separate contracts with the board of public works of the city of Los Angeles for street improvement work. This was done pursuant to the Voorman Act. One contract concerned Sunset Drive and the other Marathon Street, in Los Angeles. They were executed on the twenty-ninth day of June, 1916, and the United States Fidelity and Guaranty Company, a corporation, on the same date became surety thereon. Also, contemporaneously with- this transaction, the Municipal Securities Company entered. into an agreement to finance the contractor Gentry in the carrying out of each contract and to receive an assignment from him as security therefor of his rights to the diagrams, warrants, and assessments issuable under section 7 of the Vrooman Act (Stats.…