Judge: Colin Leis, Case: 22AHCV00020, Date: 2022-08-30 Tentative Ruling

Case Number: 22AHCV00020    Hearing Date: August 30, 2022    Dept: 3

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES – NORTHEAST DISTRICT

DEPARTMENT 3

MOVING PARTY:                Defendant and Cross-Complainant Old Republic Surety Company

RESPONDING PARTY:       N/A

Motion to Deposit by Stakeholder; for Discharge of Stakeholder; Request for Attorney’s Fees Pursuant to CCP § 386.6

The court considered the moving papers filed in connection with this motion. No opposition was filed.

BACKGROUND

            Plaintiff GL Contractors Inc. filed this action on January 11, 2022 against various defendants. Plaintiff alleges that it was a subcontractor on a construction project and that the prime contractor, Defendant Home Paradises LLC, failed to pay Plaintiff for services rendered. In addition to the contract claim, Plaintiff also asserts a cause of action for recovery on Home Paradises’ contractor’s license bond, which was executed by Defendant Old Republic Surety Company (“Surety”). On April 26, 2022, Surety filed a cross-complaint in interpleader against Plaintiff, Home Paradises, and T&L Air Conditioning, Inc.

Surety seeks a court order directing it to deposit with the court the full penalty of Home Paradises’ bond (No. W150370550) in the sum of $7,500, less $2,000 for Surety’s reasonable attorney’s fees and costs. Upon deposit of the bond, Surety seeks to be discharged from all liability against it with respect to the bond. Surety also requests that all claimants to the bond be ordered to interplead their claims and be restrained from instituting or prosecuting any proceedings with respect to the bond.

DISCUSSION

Surety asserts that it has received multiple claims on the bond which exceed the penal sum of the bond - $7,500, which is the maximum potential recovery for non-homeowner claimants. (Bus. & Prof. Code, § 7071.6.) Therefore, Surety argues that an action in interpleader is the appropriate remedy for resolving the multiple claims. (Code Civ. Proc., § 386, subd. (b).) And pursuant to Code of Civil Procedure section 386.5, a party that is a mere stakeholder with no interest in the sum alleged to be wrongfully withheld may be discharged from liability and dismissed from the action upon depositing the amount in dispute with the court. Moreover, after a complaint or cross-complaint in interpleader has been filed, the court may restrain all parties to the action from instituting or further prosecuting any other proceedings affecting the disputed sum. (Code Civ. Proc., § 386, subd. (f).) Finally, pursuant to Code of Civil Procedure section 386.6, a surety is entitled to reasonable attorney’s fees and costs incurred in seeking the relief set forth in Code of Civil Procedure section 386 or 386.5.

Accordingly, the court finds that Surety has established good cause for the relief requested. The court also finds that Surety’s request for $2,000 in attorney’s fees and costs is reasonable. (Pagan Decl., ¶ 10.)

CONCLUSION

Based on the foregoing, the court grants Surety’s motion.

The court will sign the proposed order submitted by Surety.

Surety is ordered to give notice of this ruling.

IT IS SO ORDERED.

DATED:  August 30, 2022

_____________________________

Colin Leis

Judge of the Superior Court