Manos v. Degen

Opinion

KREMER, P. J.

Plaintiff John Manos appeals an order granting defendant Bank of Coronado’s (Bank) motion for summary adjudication of issues on Manos’s complaint for enforcement of stop notice. Manos contends the court should have enforced his stop notice to the extent it was bonded under Civil Code

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section 3083. We affirm the order.

I

In July 1983 the Bank made a $679,000 construction loan to Bancroft Associates, secured by a trust deed on real property in Spring Valley.

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Bancroft Associates obtained the loan to develop the property into a 14-unit apartment building.

In August 1984 Manos subcontracted with Bancroft Associates and its general contractor Degen Development to provide labor and materials for the project. In September 1984 Manos and Degen modified the agreement. Manos provided labor and materials under the modified agreement until Degen’s failure to pay the ongoing costs of Manos’s work prevented further performance by Manos. In October 1984 Manos recorded a mechanics’ lien against the property in the amount of $82,423.16. In December 1984 Manos served a stop notice on the Bank and a bond in the sum of $41,000 naming Degen as the assured. The stop notice demanded the Bank withhold .$41,000 from the loan fund to pay Manos’s claim and stated a bond in the penal sum of 125 percent of the amount of the claim was delivered with the notice. The Bank did not withhold any funds.

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II

In January 1985 Manos sued the Bank, Bancroft Associates and Degen asserting causes of action for foreclosure of mechanics’ lien, conspiracy, and enforcement of the stop notice.

In December 1986 the Bank sought summary adjudication of issues relating to the foreclosure of the mechanics’ lien and enforcement of the stop notice. Responding to the Bank’s motion, Manos conceded the mechanics’ lien was extinguished when the Bank foreclosed on the property. However, Manos asserted rights under the stop notice to the extent it was bonded. After hearing, the court granted the Bank’s motion for summary adjudication, holding Manos’s failure to comply with statutory provisions governing stop notices barred enforcement of the notice. Manos appeals.