California Court of Appeal

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Brewer Corp. v. Point Center Financial, Inc., D061665

Judgment in favor of the plaintiff stop notice claimants is: 1) provisionally reversed as to plaintiff Dynalectric and the matter remanded for further proceedings on a potentially dispositive factual issue of the existence of a factual excuse for not serving a preliminary notice on defendant-lender, but 2) affirmed in part as to the remaining plaintiffs, where the trial court correctly held that, a) a construction lender must make available to stop notice claimants those amounts the lender has already disbursed to itself on the construction loan, b) one stop notice claimant's failure to serve a preliminary 20-day notice under Civil Code section 3097 prevented it from recovering under its bonded stop notice, and c) one stop notice claimant's failure to give the lender a notice of the commencement of the stop notice action under section 3172 did not bar the stop notice claimant from recovering where the lender suffered no prejudice.

Appellate Information

  • Decided 01/31/2014
  • Published 01/31/2014

Judges

  • McINTYRE

Court

  • California Court of Appeal

Counsel