Judge: Malcolm Mackey, Case: 22STCV13345, Date: 2023-03-15 Tentative Ruling

Case Number: 22STCV13345    Hearing Date: March 15, 2023    Dept: 55

SELA v. UTOPIA DEVELOPMENT, INC.                                              22STCV13345

Hearing Date:  3/15/23,  Dept. 55

#7:   MOTION TO DEPOSIT BY STAKEHOLDER.

Notice:  Okay

No Opposition

MP:  Defendant and Cross-Complainant OLD REPUBLIC SURETY COMPANY.

RP:  

Summary

On 4/21/22, Plaintiff filed a Complaint.

On 5/19/22, Plaintiff filed a First Amended Complaint, alleging that plaintiffs contracted with Defendant UTOPIA DEVELOPMENT, INC. to remove a residential structure, at 549 Westminster Ave., Los Angeles, and to replace it with a new structure, but water staining, mold, delamination, plaster separation, and other damages resulted from defendants’ contractor negligence and construction defects, including an improperly waterproofed home leading to rain leaks.

The causes of action are:

1. NEGLIGENCE

2. BREACH OF CONTRACT

3. BREACH OF WARRANTY

4. UNFAIR COMPETITION LAW

5. RECOVERY ON CONTRACTOR’S LICENSE BOND

6. BREACH OF FIDUCIARY DUTY.

MP Positions

Moving party requests an order regarding an interpleader, on grounds including the following:

·         OLD REPUBLIC has received claims from various parties that exceed the $7,500 amount of the subject Contractor’s License Bond.

·         Where a party is a mere stakeholder without any interests in the proceeds of the res, he may be discharged from liability pursuant to  CCP §386.5.

·         A surety wishing to avoid the open-ended costs of litigation may instead interplead the principal amount of its bond. See Karton v. Ari Design and Construction, Inc. (2021) 61 Cal.App.5th 734,753.

·         The bond provides that the total liability of the Surety herein shall not exceed the sum of $7,500.  As of January 1, 2016, the penal sum of the bond was increased from $12,500 to $15,000 for the benefit of homeowner/claimants only. See Business and Professions Code Section 7071.6(b).

·         Moving party seeks a statutory allowance in the sum of $2,000, to defray expenses incurred in pursuit of the stakeholder's remedy as set forth at   § 386 et. seq.  Sweeney v. McClaren, 58 C.A. 3d 824.

Tentative Ruling

The unopposed motion is granted, as prayed.

After a stakeholder’s right to interplead is shown, and the money over which conflicting claims have been made, is deposited with the court, the stakeholder may be discharged from liability.  E.g., City of Morgan Hill v. Brown (1999) 71 Cal.App.4^th 1114, 1122.

The amount of attorney fees and costs must be restricted to those incurred as to the interpleader remedy.  Sweeney v. McClaran (1976) 58 Cal.App.3d 824, 830.

*IF PARTIES WOULD LIKE TO SUBMIT ON THE COURT’S TENTATIVE, PLEASE CALL THE COURTROOM AT 213-633-0655*