Great American Insurance v. National Health Services, Inc.

National Health Services, Inc., a corporation (National Health) and William H. B. Chan (Chan) filed two notices of appeal herein. One appeal is taken from order granting restraining orders against them pursuant to section 538.3, Code of Civil Procedure on January 23, 1975, the other from order of October 3, 1975, denying their motion pursuant to section 556, Code of Civil Procedure to discharge attachment issued the same date. These appeals have been consolidated, The principal issue is whether an action by a surety to recover on an indemnification agreement for payment on its bond is an action based on “money loaned” within the meaning of section 537.1, subdivision (a)(1), Code of Civil Procedure.

National Health was sued in the Riverside Superior Court (case No. 104974) by Care Construction, Inc. (Care) and others; Care procured a writ of attachment; National Health sought and acquired from Great American Insurance Company (Great American) a release of attachment bond; Great American required as a condition of this bond that an indemnity agreement be executed for its protection; the indemnity agreements were signed by National Health, Chan and Sterling W. Angel,…