State Board of Equalization v. Balboa Insurance
Opinion
Lead Opinion
Beach, J.
Balboa Insurance Company appeals from the summary judgment for the State Board of Equalization (the Board) and against Balboa (appellant). The Board had filed a complaint on surety bonds alleging 12 causes of action against defendant-appellant, Balboa Insur *501 ance Company. 1 The summary judgment upon which this appeal is taken was on the first cause of action, which involved Balboa as the surety for C and T Enterprises.
Facts
The complaint alleged that on June 2, 1971, appellant executed a bond effective June 1, 1971, as security for payment of the California sales and use taxes incurred by C and T Enterprises. Between January 1, 1972, and May 31, 1972, C and T Enterprises incurred tax liability of $1,109.79, $266.13 interest, and $158.48 penalties. A lien certificate was recorded in Riverside County on November 2, 1972. C and T refused to pay, and it is alleged that the Board then made demand upon appellant under the terms of the bond. In its answer, appellant alleged that the Board made no demands upon appellant but did notice appellant on September 23, 1975, more than 39 months after appellant’s notice of cancellation to the Board.