Golden Eagle Insurance v. First Nationwide Financial Corp.

Opinion

POLLAK, J. *

— These are consolidated appeals from two summary judgments entered in the same action in favor of different parties with identical legal positions. The common issue presented is whether a surety on a construction payment bond who pays the claim of a subcontractor who had perfected a mechanics’ lien on the improved property may by subrogation acquire the right to enforce the mechanics’ lien against the property. The trial court, in granting summary judgment against the surety, concluded that “California law is well-settled that absent fraud by the owner in bringing about…