A-1 Door & Materials Co. v. Fresno Guarantee Savings & Loan Ass'n

Defendant and certain cross-defendants appeal from a judgment for plaintiff and cross-defendants determining the rights of unpaid materialmen to the proceeds of construction loans held by defendant savings and loan association.

The case was tried on an agreed statement of facts. Defendant entered into three construction-loan agreements with the owners of three parcels of unimproved real property. Bach loan was secured by a deed of trust on the parcel of property to which the loan was to be applied. The owners assigned the loan funds to defendant, and defendant agreed to disburse them in five equal progress payments, the last payment to be due on the completion of each project. Construction of the buildings was not completed, and no further work was done after the fourth progress payment. Defendant retained the unexpended funds. Plaintiff and three other unpaid materialmen (hereinafter called stop-notice claimants) filed bonded stop notices with defendant pursuant to section 1190.1, subsection (h) of the Code of Civil Procedure. 1 Several other materialmen (hereinafter called mechanic’s lien claimants), who did not file stop notices, filed mechanic’s lien claims. Plaintiff brought…