Section 8730.
8730. If the contract price for a work of improvement is not a fixed price, the amount of security provided under this chapter shall be the guaranteed maximum price or, if there is no guaranteed maximum price, the owner’s and direct contractor’s good faith estimate of the reasonable value of the work to be provided […]
Section 8538.
8538. (a) The claimant may make a written request for notice of an election by the construction lender under Section 8536 not to withhold funds. The request shall be made at the time the claimant gives the construction lender the stop payment notice and shall be accompanied by a preaddressed, stamped envelope. (b) If the construction lender […]
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 […]