KDG's Appellate and Construction Law Departments Successfully Defend a Contractor Client's Constitutional Rights

Catherine E. Bennett and Timothy G. Scanlon successfully protected a client's judgment in a construction law dispute. KDG's client paved the roads in a residential development, but was not paid. The client successfully asserted a stop-notice claim against the lender, when the lender claimed all funds had been expended and none remained to satisfy the claim. The trial court ordered that the lender had to pay the contractor from funds it had paid itself for fees and interest. On appeal, the lender argued various technical defects in the contractor's stop-notice claim, but primarily argued that the contractor should not have be able to reach funds paid to the lender. The court of appeal agreed with KDG's client that the contractor was entitled to reach those funds because of long-standing precedent and the California Constitution's protections for laborers and materialmen. Unpublished decision. Griffith Company v. Spondulix, 2012 WL 1722090, filed May 16, 2012.