Top Cat Productions, Inc. v. Michael's Los Feliz

Opinion

VOGEL (MIRIAM A.), J.

A corporate surety issued a preliminary injunction bond based upon an application and promise of indemnity executed by one of several plaintiffs. When the defendants ultimately prevailed and sought judgment on the bond, the surety claimed a right to indemnity against all of the plaintiffs and demanded a judgment in which all of the plaintiffs were made jointly and severally liable with the surety. The trial court rejected the surety’s claim, and the surety now appeals. We conclude, as did the trial court, that the surety’s rights are a matter of contract and that the only plaintiff liable to the surety is the one who applied for the bond. We therefore affirm the judgment.

Background

A.

In the 1990’s, Louise’s Trattoria, Inc., and Top Cat Productions, Inc., leased space in a commercial building owned by Michael’s Los Feliz, L.P.

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In 1997, Louise’s and Top Cat sued Michael’s for injunctive relief, and a temporary restraining order was issued at their request. The trial court ordered Louise’s and Top Cat to post a $25,000 bond, and a bond was posted. Later, at the request of Louise’s and Top Cat, the trial court issued a preliminary injunction and ordered Louise’s and Top Cat to post a $75,000 bond, which was posted. In late 1997, Louise’s filed a voluntary petition in bankruptcy. Ultimately, the case was resolved against Louise’s and Top Cat, and Michael’s asked the trial court for a judgment enforcing liability on the bonds. The request was denied and Michael’s appealed.

We reversed, finding that Michael’s was entitled to recover on the injunction bonds and that its losses exceeded the amount of the bonds.

(Top Cat Productions, Inc. v. Michael’s Los Feliz

(Feb. 15, 2001, as mod. Mar. 6, 2001, B128713, consolidated with B125481) [nonpub. opn.].) We remanded the matter to the trial court with directions to enter an order granting Michael’s motion for judgment on the bonds “in favor of Michael’s and against the appropriate parties[] in the amount of $100,000.”

B.

On remand, Michael’s submitted a proposed judgment against Louise’s, Top Cat, and ACIC (the surety, American Contractors Indemnity Company),