Alcatraz Masonic Hall Ass'n v. United States Fidelity & Guaranty Co.

Citations

• 3 Cal. App. 338

Syllabus

<p>Building Contract—Bond of Contractor—Change of Obligation— Discharge of Surety.—A surety on the bond of a contractor in the amount of the last payment on a building contract at an agreed price, to secure its performance and the delivery of the building to the owner free from all liens, etc., is exonerated and discharged, under section 2819 of the Civil Code, by a subsequent change, without the consent of the surety, in the terms of the contract increasing the price to the extent of $315, and requiring a greater length of time to complete the building, and greater expense incident thereto, than that for which the surety had agreed to indemnify the -owner.</p> <p>Id.—Construction of Bond and Contract—Enforceable Liens.— The terms of the bond and contract for the delivery of the building to the owner free from liens, claim and demands are to be construed as limited to such liens as are enforceable against the building, and not to include any unauthorized or invalid or excessive liens or claims.</p> <p>Id.—Owner Undamaged—Untenable Action for Expense.—An owner not compelled' to pay a greater amount than was agreed to be reserved from the contract price for the payment of enforceable liens has suffered no damage, and cannot maintain an action on the bond to recover expenses paid and attorney’s fees voluntarily and needlessly incurred in defending liens which are not enforceable against the building.</p>