Pierce v. Western Surety Co.

Opinion

KANE, J.

Vehicle Code1 section 11710 requires a licensed motor vehicle retail dealer to procure and file a bond in the amount of $50,000. Any person who suffers a loss by reason of the dealer’s fraud has a right of action against the dealer and the surety on the bond in an amount not to exceed the value of the vehicle purchased. (§ 11711, subd. (a).)

Here, respondent Trenton Pierce made a section 11711 claim on the bond issued by appellant Western Surety Company (Western Surety) to Autorama, a licensed dealer. Western Surety eventually settled with Pierce. Thereafter, the trial court…