Section 8540.
8540. (a) Funds withheld pursuant to a stop payment notice shall be distributed in the following order of priority: (1) First, to pay claims of persons that have given a bonded stop payment notice. If funds are insufficient to pay the claims of those persons in full, the funds shall be distributed pro rata among the claimants […]
Section 8542.
8542. Notwithstanding Section 8540: (a) If funds are withheld pursuant to a stop payment notice given to a construction lender by a direct contractor or subcontractor, the direct contractor or subcontractor may recover only the net amount due the direct contractor or subcontractor after deducting any funds that are withheld by the construction lender pursuant to […]
Section 8544.
8544. The rights of a claimant who gives a construction lender a stop payment notice are not affected by an assignment of construction loan funds made by the owner or direct contractor, and the stop payment notice has priority over the assignment, whether the assignment is made before or after the stop payment notice is […]
Section 8550.
8550. (a) A claimant shall commence an action to enforce payment of the claim stated in a stop payment notice at any time after 10 days from the date the claimant gives the stop payment notice. (b) A claimant shall commence an action to enforce payment of the claim stated in a stop payment notice not later […]
Section 8552.
8552. If more than one claimant has given a stop payment notice: (a) Any number of claimants may join in the same enforcement action. (b) If claimants commence separate actions, the court first acquiring jurisdiction may order the actions consolidated. (c) On motion of the owner or construction lender the court shall require all claimants to be impleaded […]
Section 8554.
8554. Notwithstanding Section 583.420 of the Code of Civil Procedure, if an action to enforce payment of the claim stated in a stop payment notice is not brought to trial within two years after commencement of the action, the court may in its discretion dismiss the action for want of prosecution. (Added by Stats. 2010, […]
Section 8556.
8556. A stop payment notice ceases to be effective, and a person withholding funds pursuant to the notice shall release them, in either of the following circumstances: (a) An action to enforce payment of the claim stated in the stop payment notice is dismissed, unless expressly stated to be without prejudice. (b) Judgment in an action to […]
Section 8558.
8558. (a) In an action to enforce payment of the claim stated in a bonded stop payment notice, the prevailing party is entitled to a reasonable attorney’s fee in addition to costs and damages. (b) The court, on notice and motion by a party, shall determine who is the prevailing party or that there is no prevailing […]
Section 8560.
8560. If the claimant is the prevailing party in an action to enforce payment of the claim stated in a bonded stop payment notice, any amount awarded on the claim shall include interest at the legal rate calculated from the date the stop payment notice is given. (Added by Stats. 2010, Ch. 697, Sec. 20. […]
Section 8522.
8522. (a) Except as provided in subdivision (b), on receipt of a stop payment notice an owner shall withhold from the direct contractor or from any person acting under authority of a direct contractor a sufficient amount due or to become due to the direct contractor to pay the claim stated in the notice. (b) The owner […]