Home > Business Law, Construction Law, Real Estate Law > California Paving v. Lincoln General Confirms Requirement for a Public Works Preliminary Notice

California Paving v. Lincoln General Confirms Requirement for a Public Works Preliminary Notice

California Paving & Grading Co., Inc. v. Lincoln General Insurance Co., No. BCC8930, was just decided by the Second District Court of Appeals and the opinion released yesterday on May 21, 2012.  This was a case from a paving subcontractor suing  the surety on a labor and material payment bond that the project developer had filed with a city, the trial court’s judgment of dismissal in favor of the surety was affirmed.  The Court found that 1) the subcontract was for a work of improvement contracted for by a public entity, and thus the action was governed by the statutory scheme pertaining to payment bonds for public works; and 2) the plaintiff failed to allege it duly served the city with a preliminary 20-day notice before filing suit on the bond, as required by Civil Code sections 3098 and 3252.  Here the subcontractor’s failing was only serving a preliminary notice on the general contractor and the private developer, without serving it on the actual public entity!  Contractors should always make sure they serve a preliminary notice right before or on the first day of starting any job, and serve it on all applicable parties.  Not doing so can certainly be costly.

All Rights Reserved © 2012 by Michael L. Mau, Esq. & The Mau Law Firm

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