DelPonti

Five Comers Rialto, LLC (Five Corners), obtained a construction loan from Vineyard Bank (Bank) to develop a 70-unit town-home project (Project), with guaranties from Thomas DelPonti and David Wood, principals of Five Corners (Guarantors). Five Comers contracted with Advent, Inc. (Advent), a general contractor, to build the project in two phases. Everything went according to schedule for the first 18 months. However, when phase one of the Project was nearly complete, the Bank stopped *165 funding approved payment applications, preventing completion and sale of the phase one units, which, in turn, caused Five Comers to default on the loan.

The Bank reached an agreement with Five Comers, requiring Advent to finish phase one so the units could be sold at auction, and promising to pay the subcontractors if they discounted their bills and released any liens. Advent paid the subcontractors out of its own pocket in order to keep the project lien free, so the auction could proceed. However, the Bank foreclosed against Five Comers. Advent filed an unbonded stop notice. The Bank (through its assignee California Bank & Tmst), sued Five Comers and the Guarantors under various…