Judge: Marcella O. Mclaughlin, Case: 37-2023-00055456-CU-MC-CTL, Date: 2024-01-12 Tentative Ruling

SUPERIOR COURT OF CALIFORNIA,

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HALL OF JUSTICE

TENTATIVE RULINGS - January 11, 2024

01/12/2024  01:30:00 PM  C-72 COUNTY OF SAN DIEGO

JUDICIAL OFFICER:Marcella O McLaughlin

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Civil - Unlimited  Misc Complaints - Other Hearing on Petition 37-2023-00055456-CU-MC-CTL OHL USA INC VS AYALA BORING INC [IMAGED] CAUSAL DOCUMENT/DATE FILED: Motion - Other, 01/04/2024

The motion for a declaration of rights is DENIED.

A. OHL has failed to meet its burden of showing that Ayala Boring was not authorized to give the stop payment notice. Civ. Code §§ 9400(b), 9410(b).

Civil Code section 9100 identifies the persons who may give a stop payment notice. As relevant here, such persons include those that 'provide[] work for a public contract, if the work is authorized by a direct contractor, subcontractor, architect, project manager, or other person having charge of all or part of the public works contract.' Civ. Code § 9100(a)(1). The term 'work' means 'labor, service, equipment, or material provided to a work of improvement.' Civ. Code § 8048. The phrase, 'labor, service, equipment, or material' includes 'labor, skills, services, material, supplies, equipment, appliances, power, and surveying, provided for a work of improvement.' Civ. Code § 8022.

In this case, the evidence before the court shows that Ayala Boring sold equipment to JD Barlow, a subcontractor on the project. (OHL Aff. at ¶ 5; Pet., Ex. A.) The evidence further shows that the equipment was for the project. (Pet., Ex. A at ¶ 3.) Thus, based on a plain reading of sections 8022, 8408, and 9100(a)(1), Ayala Boring provided 'work' for the project.

OHL's reliance on Davies Machinery Co. v. Pine Mountain Club, Inc. (1974) 39 Cal.App.3d 18 is misplaced because Davies involved a mechanic's lien on a private project rather than a stop payment notice on public project. The classification of persons who may file a stop payment notice on public projects is different from the description of the persons who can file a mechanics lien on a private project. Compare Civ. Code § 9100(a) with Civ. Code § 8400; see also 9 Miller & Starr, Cal. Real Estate (4th ed. 2023) § 32:86.

B. OHL has likewise failed to show that preliminary notice of the stop payment notice was not provided.

Before giving a stop payment notice, a claimant must give preliminary notice to the public entity and the direct contractor. Civ. Code § 9300(a). Compliance with section 9300(a) is 'a necessary prerequisite to the validity of a stop payment notice[.]' Civ. Code § 9300(c).

Here, assuming without deciding that noncompliance with section 900(a) is a ground for obtaining the release of funds under Civil Code section 9400, the court finds that OHL has not met its burden of proof.

Civ. Code § 9410(b). OHL's evidence (OHL Aff. at ¶ 6), when weighed against Ayala Boring's evidence (Ayala Counteraff. at ¶¶ 3(d), 13(c)), does not preponderate in favor of a finding that Ayala Boring failed Calendar No.: Event ID:  TENTATIVE RULINGS

3071472  66 CASE NUMBER: CASE TITLE:  OHL USA INC VS AYALA BORING INC [IMAGED]  37-2023-00055456-CU-MC-CTL provide preliminary notice. See Conservatorship of Wendland (2001) 26 Cal.4th 519, 549 ('The default standard of proof in civil cases is the preponderance of the evidence.'); see also City of Long Beach v. Workers' Comp. Appeals Bd. (2005) 126 Cal.App.4th 298, 314 ('A preponderance of the evidence means evidence, which when weighed with contrary evidence, has more convincing force and the greater probability of truth.').

C. Based on the foregoing, OHL has not established a basis for the City of San Diego to release the funds that are currently being withheld. Civ. Code § 9412(c). The motion is therefore denied. OHL is directed to serve a copy of this order on the City as set forth in Civil Code section 9412(d).

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