Boliver v. Surety Co

In Boliver v. Surety Co. (1977) 72 Cal. App. 3d Supp. 22, the surety issued a contractor's license bond. (Id. at pp. Supp. 25-26.) The bond did not have a provision for attorney fees. (Id. at p. Supp. 28.) Subsequently, the contractor entered into an agreement to construct a private residence. (Id. at p. Supp. 26.) The construction contract contained an attorney fees clause. (Id. at p. Supp. 26, fn. 2.) The homeowner successfully sued both the contractor and the surety for a failure of completion and substantial defects in the construction work done. (Id. at pp. Supp. 26-27.) Boliver held the surety's liability on the bond included the contractor's obligation for attorney fees. ( Boliver v. Surety Co., supra, 72 Cal. App. 3d at pp. Supp. 30-32.) Boliver reasoned the surety's liability was commensurate with that of the principal (Civ. Code, 2808), and the contractor's liability to the prevailing homeowner included attorney fees awarded by the trial court pursuant to the construction contract. (Boliver, at pp. Supp. 30-31.) Boliver held, "If the obligation of the Surety is commensurate with that of each of the principals, it properly should include their burden of attorney's fees as well as the basic liability." (Id. at p. Supp. 31.) Boliver concluded the imposition of liability for attorney fees upon the surety is appropriate when the following elements are present: (a) there is a construction contract, (b) providing for attorney fees to the prevailing party, and (c) supported by a surety bond issued by a third party, even though the surety bond does not specifically provide for the surety's liability for attorney fees. ( Boliver v. Surety Co., supra, 72 Cal. App. 3d at p. Supp. 32.)