Plaintiff landowners sought review of a judgment of the Superior Court of Alameda County (California), which ruled partially in favor of defendants, a contractor and lien claimants, in plaintiffs’ action for declaratory relief regarding plaintiffs’ legal rights and duties under the construction contract and bond.
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Overview
Plaintiff landowners brought an action against defendants, contractor and lien claimants, for declaratory relief regarding plaintiffs’ legal rights and duties under a construction contract and bond. The trial court ruled partially in favor of defendants, and the court reversed those portions of the judgment. The court found that the trial court did not determine plaintiffs’ liability for the construction work in accordance with the terms of the contract. The court held that the finding of the reasonable value of the total cost of construction was immaterial and necessarily not adequate to be a finding of the reasonable value of extras. The court held that under Cal. Civ. Proc. Code § 634, it could not infer that the trial court made the necessary findings. The court held that the failure to file the contract and bond in the recorder’s office made plaintiffs’ property liable to defendant lien claimants for the full reasonable value of the labor done or material furnished rather than limiting such liability to the amount due from plaintiffs to defendant contractor. The court held that defendant lien claimants did not have to proceed against the property first.
Outcome
The court reversed parts of the trial court’s judgment that were adverse to plaintiff landowners in plaintiffs’ action against defendants, a contractor and lien claimants, for declaratory relief regarding plaintiffs’ legal rights and duties under the construction contract and bond. The court held that by fastening a primary liability on plaintiffs’ property, the trial court permitted an unlicensed contractor to recover indirectly from plaintiffs.