Judge Lisa K. Sepe-Wiesenfeld, Case Number: 22SMCV00188, Date: 2023-09-13 Tentative Ruling

Judge: Lisa K. Sepe-Wiesenfeld, Case: 22SMCV00188, Date: 2023-09-13 Tentative Ruling

Case Number: 22SMCV00188 Hearing Date: September 13, 2023 Dept: N

TENTATIVE RULING

Cross-Defendant/Cross-Complainant Old Republic Surety Company’s Motion to Deposit by Stakeholder; for Discharge of Stakeholder; and Request for Attorney’s Fees Pursuant to CCP §386.6 is GRANTED.

The Court orders Cross-Defendant/Cross-Complainant Old Republic Surety Company to deposit the remaining penal sum of $13,250 with the Court forthwith.

Upon the deposit of $13,250, the Court orders all liability asserted against Cross-Defendant/Cross-Complainant Old Republic Surety Company in connection with Contractor’s License Bond, Bond No. GCL5934911 discharged.

Upon the deposit of $13,250, the Court awards Cross-Defendant/Cross-Complainant Old Republic Surety Company reasonable attorney fees and expenses in the sum of $1,750 as allowance for costs and expenses incurred in this proceeding.

Cross-Defendant/Cross-Complainant Old Republic Surety Company to give notice.

REASONING

Code of Civil Procedure section 386, subdivision (b), provides that “[a]ny person, firm, corporation, association or other entity against whom double or multiple claims are made, or may be made, by two or more persons which are such that they may give rise to double or multiple liability, may bring an action against the claimants to compel them to interplead and litigate their several claims,” and “[w]hen the person, firm, corporation, association or other entity against whom such claims are made, or may be made, is a defendant in an action brought upon one or more of such claims, it may either file a verified cross-complaint in interpleader, admitting that it has no interest in the money or property claimed, or in only a portion thereof, and alleging that all or such portion is demanded by parties to such action, and apply to the court upon notice to such parties for an order to deliver such money or property or such portion thereof to such person as the court shall direct; or may bring a separate action against the claimants to compel them to interplead and litigate their several claims.”

Code of Civil Procedure section 386, subdivision (f), further provides that “[a]fter any such complaint or cross-complaint in interpleader has been filed, the court in which it is filed may enter its order restraining all parties to the action from instituting or further prosecuting any other proceeding in any court in this state affecting the rights and obligations as between the parties to the interpleader until further order of the court.”

Pursuant to Code of Civil Procedure section 386.5, “[w]here the only relief sought against one of the defendants is the payment of stated sum of money alleged to be wrongfully withheld, such defendant may, upon affidavit that [the defendant] is a mere stakeholder with no interest in the amount or any portion thereof and that conflicting demands have been made upon him for the amount by parties to the action, upon Notice to such parties, apply to the Court for an Order discharging him from liability and dismissing him from the action on his depositing with the Clerk of the Court the amount in dispute and the Court may, in its discretion, make such order.”

Further, Code of Civil Procedure section 386.6 provides that “[a] party to an action who follows the procedure set forth in Section 386 or 386.5 may insert in his motion, petition, complaint, or cross-complaint a request for allowance of his costs and reasonable attorney fees incurred in such action.” “In ordering a discharge of such party, the Court may, in its discretion, award such party his costs and reasonable attorney fees from the amount in dispute which has been deposited with the Court,” and “[a]t the time of final judgment in the action the Court may make such further provisions for assumption of such costs and attorney’s fees by one or more of the adverse claimants as may appear proper.” (Code Civ. Proc., § 386.6.)

Cross-Defendant/Cross-Complainant Old Republic Surety Company (“Old Republic”) has stated and substantiated a legally sufficient claim in interpleader, as it provides the declaration of its counsel Carlos E. Sosa, who describes that Old Republic as principal made, executed, and delivered Contractor’s License Bond, Bond No. GCL5934911 in the sum of $15,000. (Mot., Sosa Decl. ¶ 2.) Old Republic claims no interest in the funds, and it cannot determine the amount which should be paid to each claimant. (Mot., Sosa Decl. ¶ 8.) Thus, Old Republic seeks to be discharged from liability with regard to the bond, and it seeks recovery of $1,750 for attorney fees and costs incurred. (Mot., Sosa Decl. ¶¶ 8-10.)

Plaintiff Roozbeh, Inc. (“Plaintiff”)’s complaint alleges that on September 27, 2021, Plaintiff entered into a written agreement with Defendants Sepideh Soleimani and Shahram Soleimani (“Defendants”) whereby Plaintiff would remodel and construct a pool, Jacuzzi, and block wall and foundation at the Defendants’ residence at 15501 Azzure Court in Los Angeles. (Compl. ¶¶ 8-9.) In their Cross-Complaint, Defendants allege that the September 27, 2021, was a proposal, and the parties entered into a contract on October 27, 2021, to govern the work. (Cross-Compl. ¶¶ 23, 30, Exs. A, F.) Defendants’ seventh cause of action alleges that Defendants are entitled to the bond issued by Old Republic in Plaintiff’s favor. (Compl. ¶¶ 89-95.)

The Court finds that the relief requested is warranted. The only relief sought against Old Republic in Defendants’ Cross-Complaint is the payment of the bond issued in favor of Plaintiff, Old Republic has no interest in the proceeds of the bond, and Old Republic has provided notice to all parties. Based on the foregoing, Old Republic is entitled to an order dismissing it from the present action and discharging it from liability, upon the deposit of the bond with the Court, and Old Republic is entitled to attorney fees and costs in the amount of $1,750, as Old Republic has also presented evidence that it has incurred more than that amount in fees and costs in bringing this action. (Mot., Sosa Decl. ¶ 10.)

Accordingly, Cross-Defendant/Cross-Complainant Old Republic Surety Company’s Motion to Deposit by Stakeholder; for Discharge of Stakeholder; and Request for Attorney’s Fees Pursuant to CCP §386.6 is GRANTED. The Court orders Cross-Defendant/Cross-Complainant Old Republic Surety Company to deposit the remaining penal sum of $13,250 with the Court forthwith. Upon the deposit of $13,250, the Court orders all liability asserted against Cross-Defendant/Cross-Complainant Old Republic Surety Company in connection with Contractor’s License Bond, Bond No. GCL5934911 discharged. Upon the deposit of $13,250, the Court awards Cross-Defendant/Cross-Complainant Old Republic Surety Company reasonable attorney fees and expenses in the sum of $1,750 as allowance for costs and expenses incurred in this proceeding. Cross-Defendant/Cross-Complainant Old Republic Surety Company to give notice.