CATES CONST., INC. v. TALBOT PARTNERS

No. S061215.

86 Cal.Rptr.2d 855 (1999)

980 P.2d 407

21 Cal.4th 28

CATES CONSTRUCTION, INC. et al., Plaintiffs, Cross-defendants and Appellants, v. TALBOT PARTNERS et al., Defendants, Cross-complainants and Respondents; Tig Insurance Company, Plaintiff, Cross-defendant and Appellant, v. Talbot Partners et al., Defendants, Cross-complainants and Respondents.

Supreme Court of California.

Rehearing Denied September 29, 1999.


Attorney(s) appearing for the Case

Law Offices of William J. Allard and William J. Allard, West Los Angeles, for Plaintiff, Cross-defendant and Appellant Cates Construction, Inc.

Bryan Cave; William I. Chertok, Santa Monica; Bottum & Feliton, Steve Johnson,

Jerry Garcia; Horvitz & Levy, Barry R. Levy, Daniel J. Gonzalez, Ari R. Kleiman and Andrea M. Gauthier, Encino, for Plaintiff, Cross-defendant and Appellant TIG Insurance Company.

Michael A. Mathews for Crum & Forster Insurance as Amicus Curiae on behalf of Plaintiff, Cross-defendant and Appellant TIG Insurance Company.

Long & Levit, Doan A. Lesser and John H. Quinn, San Francisco, for the Association of California Surety Companies as Amicus Curiae on behalf of Plaintiff, Cross-defendant and Appellant TIG Insurance Company.

Busch & Berger, Richard S. Busch and William R. Moore, Calabasas, for Amwest Surety Insurance Company as Amicus Curiae on behalf of Plaintiff, Cross-defendant and Appellant TIG Insurance Company.

Anderson, McPharlin & Conners, G. Wayne Murphy, David T. DiBiase and Mark E. Aronson, Los Angeles, for National Bond Claim Association as Amicus Curiae on behalf of Plaintiff, Cross-defendant and Appellant TIG Insurance Company.

Hugh F. Young, Jr.; Mayer, Brown & Platt, Evan M. Tager and Donald M. Falk, Wash., D.C., for Product Liability Advisory Council, Inc., as Amicus Curiae on behalf of Plaintiff, Cross-defendant and Appellant TIG Insurance Company.

Sonnenschein Nath & Rosenthal, Paul E.B. Glad and Cheryl Dyer Berg, San Francisco, for Alliance of American Insurers, Fireman's Fund Insurance Company and National Association of Independent Insurers as Amici Curiae on behalf of Plaintiff, Cross-defendant and Appellant TIG Insurance Company.

Wright, Robinson, Osthimer & Tatum and Peter C. Haley for American Insurance Association and the Surety Association of America as Amici Curiae on behalf of Plaintiffs, Cross-defendants and Appellants.

John S. Alevra, Santa Barbara; Marcus M. Kaufman; Armand Arabian; Shoop & Leanse, Paul Shoop, Malibu; Buchalter, Nemer, Fields & Younger and Bernard E. LeSage, Los Angeles, for Defendants, Cross-complainants and Respondents Talbot Partners and PAA Interpro.

Price, Postel & Parma, J. Terry Schwartz, Christopher E. Haskell, Santa Barbara; Esner, Higa & Chang, Andrew N. Chang, San Francisco, and Stuart B. Esner, Los Angeles, for Defendants, Cross-complainants and Respondents Bank of Montecito and Mountain Financial Corporation.


BAXTER, J.

This case presents issues relating to the contract and tort liability of a commercial surety to a real estate developer under a bond guaranteeing the contract performance of a general contractor on a multimillion dollar condominium construction project. For the reasons set forth below, we conclude that the bond at issue contractually obligates the surety to pay damages attributable to the general contractor's failure to promptly and faithfully perform its...

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